Goldman Sachs built and successfully launched a tokenization platform for traditional financial assets based on developments from Digital Asset within its strategy to expand digital capabilities.
Goldman Sachs, the world’s largest investment bank, launched a tokenization platform. The tool, called GS DAP™, is deployed on the Canton blockchain. The service uses the Daml smart contract language developed by leading software vendor Digital Asset.
Goldman Sachs has been working on this since November 2021, but the technology wasn’t successfully rolled out until a year later. GS DAP™ effectively tracks cash flow by recording the ownership and liabilities of transaction parties.
According to Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, the platform’s primary goal was to enhance the “digital lifecycle processing across tokenized assets.” GS DAP™, he said, would increase transaction speeds and reduce settlement times for issuing tokenized assets.
The platform’s first successful test was Goldman Sachs’ participation in a €100 million digital bond issue by the European Investment Bank (EIB). GS DAP™ delivered a settlement speed of sub-60 seconds, which is a substantial reduction in global terms.
Yuval Rooz, CEO at Digital Asset, said Goldman Sachs pioneered the tokenization of traditional financial assets. “We are excited [the Daml technology] can solve real problems for financial institutions being validated and look forward to [the market’s] continued evolution,” Rooz summarized.
Recall that Goldman Sachs recently launched the Datonomy service to classify cryptocurrencies, which allows institutional investors to analyze the digital asset market.
