Goldman Sachs yesterday announced its intention to create a separate company for its blockchain-based technology platform, GS DAP, which aims to simplify institutional trading and reduce settlement times, Reuters has reported.
The bank plans for the platform to eventually be owned by the industry as a whole and has partnered with Tradeweb Markets to expand its commercial use cases.
While banks have shown interest in leveraging blockchain to trade assets such as cash and bonds, large-scale implementation would require substantial changes to the underlying technology that underpins financial markets.
In addition, institutions are often reluctant to use a platform controlled by a competitor.
To address these concerns, Goldman Sachs plans to create a separate company for the platform to ensure a reliable, long-term solution for digital financial services.