The firm appears to have changed course on digital assets as it explores plans to create its own fiat-backed digital token
Goldman Sachs, the prominent U.S. multinational investment bank and financial services firm, is examining the possibility of issuing a fiat-backed stablecoin.
The initiative was disclosed by Matthew McDermott, Goldman’s newly appointed Global Head of Digital Assets. McDermott joined Goldman Sachs nearly 15 years ago and was promoted to his current role in June after serving most recently as the Global Head of Cross Asset Financing.
In his new position, McDermott will lead research and development efforts related to the bank’s digital currency initiatives.
According to a report published yesterday, CNBC noted that McDermott replaced Justin Schmidt, who had led Goldman’s digital assets team since 2018. Schmidt, an MIT graduate with crypto trading experience and a background in quantitative analysis, previously guided the group’s direction in the emerging asset class.
Based in London, McDermott is a proponent of blockchain technology and cryptocurrencies. In an interview with CNBC, he outlined his view of how financial systems could evolve, arguing that blockchain will become essential infrastructure for capital markets.
“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,” McDermott said.
“What you do today in the physical world could be done digitally, generating significant efficiencies. That could include debt issuance, securitization, loan origination — essentially a digital financial markets ecosystem with many potential applications.”
“We are exploring the commercial viability of creating our own fiat digital token, but it’s early days,” he added.
Goldman Sachs has previously expressed skepticism toward cryptocurrencies. In May, the firm indicated that it does not view cryptocurrencies as a conventional asset class.
A CoinDesk report explained that Goldman’s reservations stem from cryptocurrencies’ lack of predictable cash flow and their limited ability to generate earnings tied to global economic growth.
The firm has also warned that cryptocurrencies can present potential liabilities, citing exposure to hacks, losses, and illicit uses as key concerns.
That earlier, cautious stance drew attention within the industry. With McDermott leading a renewed focus on digital assets, Goldman Sachs now appears to be reassessing its position and considering how a bank-backed, fiat-pegged token could fit into the future financial landscape.