US-based investment bank Goldman Sachs, a backer of major cryptocurrency firm Circle, is ramping up its efforts in the crypto space by partnering with emerging digital assets on the blockchain.
The partnership allows Goldman Sachs to leverage Daml, a development framework created by Digital Asset, to enable financial institutions to enter into and implement blockchain agreements, the company announced Wednesday.
The statement said one of the core digital asset technologies, Daml, will help Goldman Sachs develop its own “end-to-end token asset infrastructure” that will support multiple asset classes in both private and public blockchains.
Matthew McDermott, Head of Digital Assets at Goldman Sachs, said Daml-based solutions have the potential to accelerate blockchain-based digitization workflows for financial institutions and clients by connecting different infrastructures:
“As we continue to expand our tokenization capabilities, we need solutions that can rapidly address the complexity and diversity of the assets that underlie our business, both digital and legacy token assets, and be interoperable across multiple blockchains.”
Thanks to the implementation of the smart contract language of the same name, Daml provides a platform for creating multi-party applications aimed at eliminating redundant processing and manual labor. Some of the world’s largest financial institutions, such as BNP Paribas Securities Department, have implemented Daml-based smart contracts to develop real-time trading and settlement applications.
Digital Asset did not immediately respond to Cointelegraph’s request for comment.
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Goldman Sachs previously announced that it was participating in some research on “end-to-end tokenization” in June 2019, with CEO David Solomon noting that global payment systems are in the process of launching a cryptocurrency pegged to currencies known as staking coins. The investment bank is best known for its investment in Circle, a major developer of the United States Dollar (USDC), the world’s second largest stablecoin by market capitalization after Tether (USDT).
After launching limited trading in Bitcoin (BTC) derivatives in May 2021, Goldman Sachs has continued to explore crypto investment products, revealing plans for Ether (ETH) derivatives in June.