Goldman Sachs CEO David Solomon announces increased focus on crypto and prediction markets, highlighting research and discussions on stablecoins, tokenization. The firm is evaluating how these technologies can enhance core business operations. Solomon personally met with prediction market leaders to understand regulatory frameworks, reflecting Wall Street’s shift towards crypto integration.

Tokenization converts paper assets into digital ones on a blockchain, maintaining asset integrity while changing transaction rails. Goldman partnered with BNY Mellon to offer tokenized money market funds through its GS DAP platform, enabling faster share settlement using blockchain technology.

Tokenized real-world assets (RWA) sector, excluding stablecoins, saw significant growth in 2025, reaching $18-33 billion, driven by U.S. Treasuries, private credit, and money market funds. Tokenized Treasuries were in high demand, indicating institutional interest in regulated yield-bearing products.

Stablecoins, digital dollars pegged to $1, saw a surge in 2025 after the passage of the GENIUS Act, the first federal regulation for dollar-backed stablecoins. The market capitalization reached $306 billion, showcasing institutional participation and growth in stablecoin adoption.

Goldman Sachs highlights the rise of prediction markets, where individuals trade on real-world outcomes under CFTC oversight. Platforms like Kalshi have experienced growth, with increased volumes in 2025 due to regulatory approvals and expanded offerings, reducing legal uncertainties and attracting broader participation.

Goldman Sachs’ embrace of blockchain technologies signals a strategic shift towards utility-driven tools over speculative ones. Tokenized real-world assets surpassed $7 billion in 2025, offering faster settlement, reduced costs, and incentivizing other firms to adopt tokenized products to streamline operations.

Read more at Yahoo Finance: Goldman Sachs Goes All-In On Crypto And Prediction Market