Goldman Sachs Looking to Scale Their Operations Using Blockchain

The 21st century is the era of tech marvels. A majority of companies operating today are using advanced equipment to enhance their productivity. Blockchain has managed to enter major markets and attracted big guns from various sectors. Recently, Goldman Sachs, an investment banking company, revealed that they are open to hire people in their digital asset segment.

The Company is Highly Supportive of Blockchain

Matthew McDermott, global head of Goldman Sachs, revealed in an interview that the company is highly supportive of the technology, Bloomberg reported. Goldman Sachs’ tokenization platform, GS DAP is a private blockchain network and has grown their headcount from 4 in 2020 to 70 currently. The platform was used for tokenized green bonds in Hong Kong. The organization believes that they can use it for their other assets too.

Most people associate the technology with crypto assets, however, the use cases go beyond them. Basis of the mentality comes from the fact that the concept entered the mainstream alongside the flagship crypto asset, Bitcoin, in January 2009. From storage to tracking, companies in different sectors are utilizing blockchain accordingly.

2022 was a year of turmoil for the cryptocurrency market. Unfortunate failures of ecosystems including TerraUSD in May 2022 and FTX in November 2022. The events led several investors to flee from the market while causing their trust to fade. Companies like Three Arrows Capital, Anthropic, BlockFi and more had their exposure to either of the failed networks.

The events also caught regulatory eyes towards the sector, leading them to tighten the leash over the sector. The Securities and Exchange Commission (SEC) has called the crypto market a financial wild west. Gary Gensler, SEC chair said during Twitter space hosted by US Army that a majority of these assets will fail.

Nevertheless, blockchain technology is not exclusIve to the cryptocurrency sector. Many experts believe that crypto may fall but blockchain will remain. According to the data, 10% of the global population holds virtual currencies while 16% of US citizens have invested in them.

The blockchain sector is expected to reach $163.83 Billion by 2029 at a compound annual growth rate (CAGR) of 56.3%. Furthermore, banking remains the major segment using the tech, accounting for over 29% market share. Data shows entities threw $6.6 Billion on blockchain solutions in 2021. Additionally, cross-border payments remain the primary use case associated with the technology.

Major companies like Microsoft, Adobe, International Business Machine (IBM), Andreessen Horowitz (A16Z) and more have integrated the technology with their operations. Furthermore, experts believe that industrial blockchain may top $85 Billion by 2023.

People are slowly learning the fact that blockchain is the underlying technology crypto assets are using. With renowned companies identifying more use cases associated with this tech, it may bolster to a great extent in future.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.