Goldman Sachs plans to spin out its blockchain-based platform, GS DAP®, into an independent, industry-owned entity to enhance collaboration among financial institutions. Partnering with Tradeweb Markets, the initiative aims to advance digital transformation in financial markets by leveraging distributed ledger technology for greater efficiency and interoperability. The spin-out is expected to be completed within 12 to 18 months, subject to regulatory approvals.
Goldman Sachs has announced its intent to strategically spin out its award-winning blockchain-based technology platform, GS DAP®, marking a pivotal step in advancing digital transformation within financial markets. The move seeks to establish GS DAP® as an independent, industry-owned solution, fostering collaboration among financial institutions. This initiative, subject to regulatory approvals, underscores Goldman Sachs’ commitment to driving innovation in distributed ledger technology (DLT) and interoperability in global financial systems.
The spin-out aligns with Goldman Sachs’ broader vision to revolutionise financial markets by providing a decentralised infrastructure that enhances efficiency, scalability, and market connectivity. By transitioning GS DAP® into a standalone entity, the initiative aims to create a long-term, fit-for-purpose solution that caters to the evolving needs of the digital financial ecosystem.
Transforming financial market infrastructure with GS DAP®
Originally developed under Goldman Sachs’ Digital Assets business, GS DAP® has already demonstrated its potential by facilitating landmark transactions, such as a €100 million digital bond for the European Investment Bank and Hong Kong’s first tokenised green bond issuance. The platform leverages Digital Asset’s Canton blockchain technology to deliver solutions across asset classes while meeting multi-jurisdictional compliance needs.
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, emphasised the transformative potential of blockchain:
“We view permissioned distributed technologies as the next structural change to financial markets and are already demonstrating the meaningfulness of the technology’s perceived benefits. 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.”
Goldman Sachs aims to execute the spin-out within the next 12 to 18 months while continuing to scale its Digital Assets business. The platform’s strategic direction reflects the industry’s growing focus on tokenisation and blockchain-powered financial systems, which promise enhanced liquidity, transparency, and efficiency.
Collaboration with Tradeweb Markets to drive use cases
A key highlight of this development is Goldman Sachs’ partnership with Tradeweb Markets, a leading platform for rates and credit trading. This collaboration seeks to expand the commercial applications of GS DAP® by integrating Tradeweb’s expertise in trading and liquidity across fixed-income markets.
Chris Bruner, Chief Product Officer at Tradeweb, stated:
“We are thrilled to embark on this journey with Goldman Sachs. 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.”
The partnership represents a shared commitment to leveraging blockchain for tokenisation, enabling the digitisation of assets such as cash, bonds, and funds. By fostering a unified approach to DLT, Goldman Sachs and Tradeweb aim to overcome existing market silos, setting the stage for greater interoperability.
Future prospects for blockchain in financial services
GS DAP® is poised to address challenges in the adoption of blockchain by financial institutions, particularly the need for interoperability and shared infrastructure. Industry-wide collaboration remains central to this vision, as highlighted by the Bank for International Settlements (BIS) promotion of a ‘Unified Ledger’ for global financial markets.
The spin-out also reflects a broader trend of financial institutions embracing blockchain-based solutions, as evidenced by similar initiatives from Deutsche Börse, HSBC, and SWIAT. By positioning GS DAP® as an industry-owned entity, Goldman Sachs is taking a leadership role in shaping the next generation of digital financial services.
About Goldman Sachs
Goldman Sachs, established in 1869, is a leading global financial institution headquartered in New York City. It offers a broad range of services, including investment banking, securities, asset management, and wealth management, catering to corporations, financial institutions, governments, and individuals worldwide.
The firm operates through several segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. With a presence in major financial centres globally, Goldman Sachs is recognised for its significant role in financial markets and its commitment to innovation and client service.
Shikha Negi is a Content Writer at ztudium with expertise in writing and proofreading content. Having created more than 500 articles encompassing a diverse range of educational topics, from breaking news to in-depth analysis and long-form content, Shikha has a deep understanding of emerging trends in business, technology (including AI, blockchain, and the metaverse), and societal shifts, As the author at Sarvgyan News, Shikha has demonstrated expertise in crafting engaging and informative content tailored for various audiences, including students, educators, and professionals.
