Banking News

Goldman Sachs looking at tokenisation and digital coins

Goldman Sachs looking at tokenisation and digital coins

(28 June 2019 – US) Goldman Sachs CEO David Solomon has revealed that the bank could follow JPMorgan Chase in creating a digital coin while he also dismissed the threat of tech giants moving beyond payments into the deposit space.

Speaking to French financial newspaper Les Echos, Mr Solomon says Goldman Sachs could "absolutely" create its own digital token, like the JPM Coin, to settle transactions, and that people should "assume that all major financial institutions around the world are looking at the potential of 'tokenisation', 'stable wedge' and frictionless payments".

More broadly, the bank chief says that tokenisation and the use of blockchain for a stable digital currency based on a basket of real currencies that can move money across borders is "the direction in which the payments system will go".

The CEO is not worried that the tech giants will put banks out of business, arguing that although payment flows will become less profitable, other areas such as deposits are safe because Facebook and others do not want to submit to the same regulatory regime as banks need to.

Instead, he sees the potential for partnerships, citing Goldman's recent deal with Apple on the iPhone maker's move into credit cards.

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