The American Investment Bank Goldman Sachs, sponsor of major cryptocurrency firm Circle, is strengthening its tokenization efforts by partner with blockchain startup Digital Asset.
The partnership enables Goldman Sachs to use Daml, a development framework created by Digital Asset to enable financial institutions to build and execute deals on blockchain, the company announced Wednesday.
Daml, one of Digital Asset’s core technologies, will help Goldman Sachs develop its own “end-to-end tokenized asset infrastructure” that would support multiple asset classes on private and public blockchains, the announcement reads.
Mathew McDermott, Global Head of Digital Assets, Goldman Sachs, said Daml-based solutions could accelerate blockchain-based digitization workflows in financial institutions and clients by interconnecting various infrastructures:
“As we continue to develop our tokenization capabilities, we need solutions that can quickly capture the full complexity and diversity of assets at the heart of our business for digitally native or tokenized traditional assets, and that are interoperable across multiple blockchains.”
When implementing the smart contract language of the same name, Daml is a platform for creating multi-party applications aimed at eliminating double processing and manual labor. Some of the world’s largest financial institutions, such as BNP Paribas Securities Division, implemented Daml-based smart contracts to develop real-time settlement and trading applications.
Digital Asset did not immediately respond to Cointelegraph’s request for comment.
Goldman Sachs previously claimed to be involved in a “comprehensive investigation” into tokenization in June 2019, and CEO David Solomon noted that global payment systems were moving toto launch cryptocurrencies pegged to fiat currency known as stablecoins. The investment bank is known for investing in Circle, a lead developer of USD Coin (USDC), the second largest stablecoin in the world by market capitalization after Tether (USDT).
After launching a limited Bitcoin (BTC) derivatives trading desk in May 2021, Goldman Sachs continued to explore cryptocurrency investment products, revealing plans for Ether (ETH) derivatives in June..
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