Goldman Sachs Looks to 24/7 Tokenized Treasuries, Money Market Trading in US

The firm already operates a crypto derivatives desk and is preparing to launch three tokenization projects in 2025. These include its first U.S. fund tokenization and a euro-denominated digital bond. Tokenized money market funds have surpassed $1 billion in assets under management. McKinsey says the sector could expand to $2 trillion by 2030. Offerings from BlackRock, Franklin Templeton, and various Web3 firms provide early liquidity, creating opportunities for tokenized collateral to support more flexible and continuous settlement cycles. Tokenized Treasuries have surpassed $5 billion with BlackRock’s BUIDL leading the way.

Policy developments have removed major regulatory hurdles. The Office of the Comptroller of the Currency’s Interpretive Letter 1183, issued in March, allows national banks to conduct crypto custody, stablecoin operations, and distributed ledger settlements without prior approval. The Federal Reserve, FDIC, and OCC collectively withdrew previous 2023 guidance discouraging crypto activity. The reversals align U.S. rules with global jurisdictions and are part of broader deregulatory efforts under the Trump administration.

Goldman is also considering spinning off its Digital Asset Platform (GS DAP) into a separate entity. This initiative would allow the platform to serve multiple institutions, aiming for shared infrastructure to improve efficiency and accelerate liquidity, which is essential for the secondary trading of tokenized Treasuries and other assets.

However, challenges persist. Goldman continues to favor permissioned blockchains to meet compliance requirements. Additionally, bank custodians still face regulatory capital requirements tied to on-chain holdings under SEC guidance. Liquidity in tokenized bonds remains limited, suggesting secondary markets will require time to mature. The bank’s roadmap positions it to introduce tokenized government debt products that can be traded outside standard market hours. The approach reflects an effort to meet evolving institutional demand and align blockchain integration with traditional market mechanics.