Mathew McDermott, Head of Digital Assets at Goldman Sachs, told attendees at Token2049 in Dubai that clear rules are essential for bringing large sums of institutional capital into crypto.
He explained that big players need a stable framework before they can deploy funds across exchanges, protocols, and tokenised assets. According to McDermott, achieving that scale will help the market mature and spur further innovation.
Lobbying for Better Rules
During a fireside chat, McDermott highlighted the efforts of various lobbying groups pushing for tailored regulations under the current US administration.
He praised recent moves in Washington, noting that thoughtful legislation will benefit not only American firms but the global crypto community.
By creating a fair and transparent landscape, McDermott believes more stakeholders will join the conversation and fuel growth.
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Stablecoin Legislation
McDermott singled out two pending stablecoin bills as potential game changers. If enacted, these laws could make it simpler for banks and asset managers to hold and use dollar-pegged tokens.
“Easy stablecoin adoption by financial institutions could boost digital currency use among major players,” he said. Goldman Sachs is watching these developments closely, ready to adapt as the rules take shape.
Goldman’s Own Crypto Moves
Despite waiting for clearer guidance, Goldman Sachs has already expanded its digital offerings. A recent SEC filing showed the bank held $710 million in Bitcoin ETFs.
Meanwhile, Goldman is spinning off its in-house Digital Asset Platform, which will offer trading, custody, and tokenisation services. “We’ve brought on strategic partners and expect to divest next year,” McDermott revealed.
While waiting for clearer rules, Goldman Sachs has already taken steps in the digital asset space. The institution is showing increased interest in the crypto industry.
It has also invested $288 million in the Fidelity Wise Origin Bitcoin Fund, more than doubling its position since last quarter. These moves underline the bank’s belief in regulated crypto products as a way for institutions to gain exposure to digital assets.
Tokenisation and Money Markets
McDermott also emphasised the potential of tokenised assets beyond cryptocurrencies. He pointed to Goldman’s work on tokenising money market funds and other traditional products, noting strong client demand.
With a robust legal framework, tokenisation could unlock new efficiencies, reduce costs, and open fresh revenue streams for banks and fund managers alike.
As regulators and industry players work toward common ground, the path to mainstream crypto adoption becomes clearer. McDermott’s vision of a balanced rulebook promises a future where large institutions can confidently engage with digital assets.
When that happens, the market will not only grow in size but also in stability, paving the way for broader innovation and wider participation across the financial world.
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