US investment banking group Goldman Sachs has announced plans to spin out its fully owned GS DAP technology platform from its digital assets business.
The latest move is aimed at transforming it into an independent, industry-owned distributed technology solution. It also aligns with the firm’s strategy to enhance interoperability in digital financial markets.
Developed by Goldman Sachs’ digital assets division, GS DAP is a platform designed to support the complex requirements of market participants in digital capital markets.
The proposed spin-out supports Goldman Sachs’ broader vision to establish an independent ecosystem that facilitates seamless and efficient collaboration among market participants.
GS DAP’s separation will also lay the groundwork for digital financial services by delivering a tailored and sustainable long-term solution, said Goldman Sachs.
Goldman Sachs digital assets global head Mathew McDermott said: “Delivering a distributed technology solution to a wide cross-section of financial market participants has the potential to redefine market connectivity, infrastructure composability, and to deliver a new suite of commercial opportunities for the buy- and sell-side.”
As part of this announcement, Goldman Sachs also revealed its collaboration with industry partners to advance the commitment for using distributed ledger technology across financial markets.
The US investment banking group also announced the first strategic partnership for GS DAP with global electronic marketplaces operator Tradeweb.
Tradeweb’s trading and liquidity expertise in fixed income will be integrated into GS DAP, creating new commercial use cases and expanding the platform’s capabilities.
Tradeweb chief product officer Chris Bruner said: “Our goal is to create and utilise a solution that ushers in a new wave of access, liquidity, and interoperability for the digital financial markets, introducing new capabilities to the marketplace that advance market structure and connectivity.”
In addition, Goldman Sachs will continue scaling its Digital Assets business alongside advancing GS DAP’s multi-jurisdictional solutions, which currently span a wide range of asset classes.
The Digital Assets business supports the adoption of blockchain-powered financial systems. This includes providing capital markets solutions, crypto-linked trading products, and platforms like GS DAP.
The GS DAP platform’s transaction is subject to regulatory approvals.
