US investment bank Goldman Sachs, a supporter of the large cryptocurrency company Circle, is stepping up its tokenization efforts by partnering 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 blockchain agreements, the company announced Wednesday.
One of Digital Asset’s core technologies, Daml will help Goldman Sachs develop its own “end-to-end tokenized asset infrastructure” that would support multiple asset classes on private and public blockchains, reads the announcement.
Mathew McDermott, global head of digital assets at Goldman Sachs, said that Daml-based solutions could potentially accelerate blockchain-based digitization workflows across financial institutions and clients by connecting different infrastructures:
“As we continue to expand our tokenization capabilities, we need solutions that can quickly capture the full complexity and diversity of assets at the heart of our business for both digitally proprietary and tokenized traditional assets, and be interoperable across multiple blockchains. “
Implementing the so-called smart contract language, Daml is a platform for building multi-party applications aimed at eliminating duplicate processing and craftsmanship. Some of the world’s largest financial institutions, such as BNP Paribas’ securities arm, have deployed Daml-based smart contracts to develop real-time trading and settlement applications.
Digital Asset did not immediately respond to a request for comment from Cointelegraph.
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Goldman Sachs previously claimed to be involved in some “comprehensive research” on tokenization in June 2019, with CEO David Solomon pointing out that global payment systems are moving to launch fiat-pegged cryptocurrencies known as stablecoins. The investment bank is known for investing in Circle, a major developer of USD Coin (USDC), the second largest stable coin in the world by market capitalization to Tether (USDT).
Following the launch of a limited Bitcoin (BTC) derivative trading desk in May 2021, Goldman Sachs continued to explore crypto-investment products, and public plans for Ether (ETH) derivatives in June.