Crypto Mastermind summary:

  • The new head of digital assets at Goldman Sachs, Mathew McDermott sees blockchain technology as important development for the future.

  • Goldman Sachs is searching for a new vice president for their digital assets department and wants to expand the team for researching possibilities, to create their own coin.

  • The digital asset team works with experts from europe, asia and even the ex-leader for JP Morgans Quorum-department.


Although a few months ago the major bank Goldman Sachs declared harsh criticism on cryptocurrencies such as Bitcoin, its strong interest in blockchain technology is now becoming apparent. Last month a new „Global Head of Digital Assets“ was already appointed, according to the American TV broadcaster CNBC: Mathew McDermott. In an interview on CNBC he mentioned, that the bank is currently investigating possibilities to create a digital token based on a Fiat currency. They see blockchain technology is seen as an important development for the future:

„We are exploring the commercial feasibility of creating our own digital Fiat token, but it is still in its infancy    …    in the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain.“


Goldman Sachs‘ crypto-coin project enters the next round

Now Goldman Sachs is looking for a vice president for its Digital Assets team. The VP will work closely with Mathew McDermott and, according to the job description will be:

„defining and executing Goldman Sachs‘ distributed ledger technology (DLT) and blockchain efforts firmwide, including any potential initiatives in the cryptocurrency space.“

Important tasks would therefore be to cooperate with representatives to find possible areas of use for blockchain and distributed ledger technologies. He would talk to the publicity in the FinTech area. And he should gain a thorough understanding of the various digital asset technologies.

To develop the project, possibly a Stablecoin, President McDermott is now constantly expanding his team. Experts from both Europe and Asia will be involved.

As a reason for the new project he explains:

„We’ve definitely noticed an increase in interest from some of our institutional clients looking into how they can participate in this area.“

He also contacted the former leader of JP Morgan’s Quorum blockchain development department: Oli Harris. Previously he had worked on the stablecoin ‚JPM Coin, created by JP Morgan. And he’s said to had conversations with Facebook, as the company had announced its own cryptocurrency ‚Libra‚ last year.


Could a ‚Goldman Sachs Coin‘ harm Bitcoin?

The statements of Mathew McDermott rather suggest that the token would be a centralized stablecoin. This would possibly take the project in a similar direction to, f.e., the Tether-USD, which facilitates direct exchange in cryptocurrencies. Since cryptocurrencies such as Bitcoin basically pursue a different idea and represent a currency unit of their own, it is questionable whether a possible ‚Goldman Sachs Coin‘ would really represent a competitior for the established cryptocurrencies or would not perhaps even contribute to increased acceptance of them for the purpose of potentially easier access.

Many are thinking critical about a token, that is tied to a fiat currency. They say, that this is contrary to the nature of cryptocurrencies and their original purpose of ensuring decentralization and anonymity. However, the growing interest of institutional investors and the offer of their own coins could be an important step towards mass acceptance of blockchain technology.


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