Goldman Sachs Ventures into Tokenization for Institutional Clients

In keeping with its strategy realignment, Kambi sees 2024 as a year of transformation. Revenue for the entire year is expected to range from €170 million to €180 million, somewhat less than the €173.3 million recorded for FY23. In spite of this, Kambi is still upbeat about revenue growth at the end of the year from new partner signings and organic growth from current partners.

95% of Kambi’s sportsbook income in the first quarter of 2023 came from areas that were subject to local regulations, underscoring the significance of conducting business in compliant settings. Kambi’s dedication to growing in regulated markets is essential to maintaining profitability and long-term growth.

Focus on Institutional Clients

Mathew McDermott, global head of digital assets at Goldman Sachs, highlighted the institution’s emphasis on serving institutional clients through these initiatives. McDermott explained to Fortune, “The nice thing is, about an institution of our size, there are differing views [on crypto].”

Goldman Sachs has been actively involved in the crypto space, offering cash-settled crypto derivatives trading and exploring opportunities in ETF markets. McDermott noted, “We’ve continued to see, certainly this year, an uptick and a broadening in the product suite that clients would like to see available.”

One of Goldman Sachs’ tokenization projects will target the U.S. fund sector, aiming to streamline asset management using blockchain-based tokenization. Another project will focus on enhancing European debt markets, potentially transforming debt issuance processes.

The details of the third project remain undisclosed, but it is expected to contribute significantly to Goldman Sachs’ diversification and innovation efforts in digital assets.

Unlike some competitors favoring public blockchain solutions, Goldman Sachs opts for private blockchains, navigating regulatory challenges effectively. This approach underscores the bank’s cautious yet proactive stance in adapting to the evolving crypto regulatory landscape.

Goldman Sachs’ move into tokenization coincides with a broader resurgence in the cryptocurrency market, fueled by recent advancements in Bitcoin ETFs and increasing institutional interest.