After JPMorgan Chase, Goldman Sachs Will Launch Its Own Stablecoin?

JPMorgan Chase (JP Morgan), the largest financial services organization in the United States, was not optimistic about cryptocurrencies. Its CEO Jamie Dimon has criticized Bitcoin many times, but announced the launch of the encrypted digital currency JMP coin (Morgan coin) in 2019. Instant settlement of payment transactions between customers.

Coincidentally!

Goldman Sachs, a large U.S. multinational bank, has not shown much preference for the cryptocurrency industry in the past. Sharmin Mossavar-Rahmani, chief investment officer and head of investment strategy at Goldman Sachs, discussed "the economic outlook for the United States and the impact of current policies on inflation, gold and bitcoin" with investors during a recent conference call in May. Not only does Goldman Sachs think Bitcoin is unimportant, but it also says that cryptocurrencies are not an asset class at all.

However, Goldman Sachs also took a step closer to crypto services in 2019, backing several cryptocurrency companies, including Circle and BitGo. At least from the development of the bank's digital asset department, Goldman Sachs may be more supportive of the digital economy and digital currency. Mathew McDermott (Matthew McDermott), who previously ran the bank's internal financing business, was recently appointed head of digital assets.

In a recent CNBCinterviewing, McDermott highlighted his optimism for a digital financial economy built on blockchain.

“In the next five to ten years, all assets and liabilities in the financial system will be generated on the blockchain, and all transactions will naturally occur on the chain. Therefore, today in the physical world, only digital operations can generate Huge efficiencies. All these could be debt issuance, securitization, loan origination; in the future, you will have a digital financial market ecosystem with a very wide range of options to choose from.”

He also said that many of the current legacy processes are slow, inefficient and costly. By “leveraging distributed ledger technology (DLT), you can standardize the process to manage collateral across the system, and in the case of real-time settlement, you can have a much more efficient settlement process.”

McDermott is now expanding its team, hiring talent from across Asia and Europe. He recently recruited Oli Harris, the former head of JPMorgan's Quorum. Quorum is an Ethereum-based blockchain that is the basis for the cryptocurrency JPM Coin.

Maybe it's a sense of crisis, a fear that if you don't start adapting now, you will fall behind your competitors in the future. Signature Bank launched Signet in 2018, JP Morgan launched JPM Coin in June 2019, and Wells Fargo began testing its own stablecoin in September 2019.

Goldman Sachs' "before and after" attitude confirms speculation that whether Goldman Sachs is studying a similar path, McDermott confirmed this view: "We are exploring the commercial viability of creating our own legal digital tokens, but now It’s still early days as we continue to investigate potential use cases.”

The new head of digital assets at Goldman Sachs also said that we have indeed witnessed a rise in interest from institutional investors in the cryptocurrency space. "There is no doubt that interest in cryptocurrencies is recovering."