CoinDesk
Goldman Sachs, Wells Fargo and Morgan Stanley are pursuing different opportunities in tokenization, from trading and payments to wealth management. Wells Fargo says its tokenized deposit system is already processing cross-border payments in two minutes or less, while Goldman and Morgan Stanley are focused on expanding securities activity and advisory demand.
Why it matters
The banks' stance marks a shift from treating blockchain as a potential threat to viewing it as infrastructure for new financial products and services. Tokenization brings assets such as bonds, equities and commodities onto blockchains, potentially enabling around-the-clock trading, faster settlement and broader distribution.
Goldman CEO David Solomon said tokenization, decentralized finance and prediction markets could create more products, activity, clients and distribution channels rather than simply erode trading revenue. Goldman has built its GS DAP platform and worked on tokenized bonds, money market funds and real estate. It also participated in a DTCC tokenization service trial in July.
Market impact
Goldman's current assessment remains measured: activity is still small and marginal. Wells Fargo's tokenized deposit payments are in production but also at small volume, with the bank betting the system can help it expand cross-border payments without building a large international branch network.
Morgan Stanley is looking beyond transaction speed. CFO Sharon Yeshaya said easier asset transfers could increase the need for wealth management advice, rather than eliminate it. None of the banks assigned a revenue figure to the opportunity, but their separate use cases show how tokenization could spread through trading, money movement and client advice.
Frequently asked questions
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How is Goldman Sachs using tokenization?
Goldman Sachs sees tokenization as a way to expand trading through new products, clients and distribution channels. It has built the GS DAP platform and worked on tokenized bonds, money market funds and real estate.
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What is Wells Fargo doing with tokenized deposits?
Wells Fargo says its tokenized deposit system is already processing cross-border payments in two minutes or less. The bank expects the system could expand international payments without requiring a larger branch network.
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Why does Morgan Stanley see more demand for advice?
Morgan Stanley says faster and easier asset transfers will not remove the need for advice. Investors may need more guidance as tokenization gives them new ways to move assets.
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Are the banks already generating significant tokenization revenue?
The banks did not assign revenue figures to the opportunity. Goldman described current activity as small and marginal, while Wells Fargo said its tokenized deposit payment volume is still small.
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Which financial services could tokenization change first?
The banks are focused on three areas: trading, cross-border payments and wealth management advice. Tokenization could also support faster settlement and broader distribution of securities.
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