Goldman Sachs CEO hints at possible “JPM Coin-like” Crypto

According to a statement by David Solomon, the CEO of Goldman Sachs, the firm could very well end up taking part in the crypto distribution of finance around the world.

In an interview with Les Echos, a French news source, Solomon stated that the bank “absolutely” could follow in the footsteps of JP Morgan Chase in the creation of its own cryptocurrency. Furthermore, he stated that Goldman Sachs is currently conduction extensive research on the tokenization of assets and stablecoins.

Solomon stated:

“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.”

When questioned about possible involvement with Facebook’s Libra, Solomon denied commenting on any discussion the bank may have had with the social network.

However, the CEO did state “I find the principle interesting.” Tokenization and stablecoins are “the direction in which the payment system will go.”

That being said, the CEO also stated that it is too early to tell which platform will ultimately win.

With regards to crypto regulation, Solomon believes that change is on its way “for sure.”

He stated:

“I think regulators around the world are watching what’s going on. They wonder how it will work and are very attentive to payment flows.”

After stated that cryptocurrencies would only have real value in a dystopian economy back in January, JPMorgan revealed a mere month later that it was, in fact, working on a cryptocurrency of its own.

JPM Coin will initially operate atop Quorum, the private version of Ethereum which the bank co-developed with EthLab. The blockchain could be used to settle some of the transactions between the bank’s clients of its wholesale business in almost real time.

Lastly, the bank revealed earlier last week that it is currently conduction trials of the JPM Coin with its clients.