Goldman Sachs to spin off its crypto platform to accelerate development

Monday, November 18, 2024

By creating a dedicated entity, the famous American bank will be able to welcome new investors and develop new services, as one of its managers, Mathew McDermott, explains.

The rise in cryptocurrency prices is shaking things up, particularly on the side of the biggest financial institutions.

American bank Goldman Sachs, which has been active in the sector for years, is planning to spin off (or "spin-off") its analysis and investment platform dedicated to digital assets, as Mathew McDermott, one of its managers, told Bloomberg on Monday.

The principle of a spin-off is to create a new entity for a business, usually one with high potential.

Goldman Sachs is reportedly already in discussions with partners to invest in this data and investment platform dedicated to digital assets.

"In the interests of the market, it's crucial to have a tool that is owned by market participants," Mathew McDermott told Bloomberg. "If you're trying to build a platform at scale, you need to have all the participants that matter," he added, noting that Goldman Sachs would keep its dedicated crypto team in-house.

This announcement comes as cryptocurrency markets have surged since the election of Donald Trump, who pledged throughout his campaign to adopt industry-friendly policies.

Last week, bitcoin hit a new all-time high, surpassing $90,000.

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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