If all goes well, crypto fans could soon see a Goldman Sachs stablecoin. The American financial giant has revealed that it is working on a stablecoin that will be pegged to a fiat. It comes as a surprise that Goldman Sachs is considering launching a cryptocurrency since the bank had remained quite neutral when it came to crypto.
The Goldman Sachs hasn’t been straightforward about its participation in the crypto story. It had always had a mixed relationship when it came to cryptocurrencies. However, things will change after the announcement of Goldman Sachs stablecoin.
Scarce details about Goldman Sachs stablecoin
The well-known investment bank has not released extensive details about its crypto project. It is unclear whether the under-development coin would be available for retail investors or banks only.
Matthew McDermott of Goldman Sachs mentioned about the coin in a CNBC interview. He said that the firm is currently exploring the commercial feasibility of a digital token pegged to fiat. In technical terms, they will create a stablecoin that will be pegged to the US dollar or any other fiat currency. Interestingly, Goldman Sachs stablecoin project features Oli Harris, who was previously a part of the Quorum blockchain.
Goldman Sachs is getting cozy with blockchain tech
In the past, Goldman Sachs has shown interest in blockchain. In 2018, it explored the idea of a dedicated trading desk. However, the plans didn’t bore fruit. The chief operating officer David Solomon has publicly said that the firm is yet to chart into the crypto waters.
In 2019, Solomon said that the tokenization of assets was being explored. Circle and BitGo are some of the ventures where Goldman Sachs has tried to touch the crypto industry.
If one were to guess about the Goldman Sachs stablecoin, it would likely be for institutional investors first. It could be similar to the stablecoins issued by JP Morgan and Signature Bank. A stablecoin for the general public seems like a far-fetched possibility as of now.