The benefits of tokenized bond issuance were discussed today at the Crypto Assets Conference, with issuers represented by Siemens and kfw, investors by Union Investment, and Goldman Sachs discussing its DLT issuance platforms. While Siemens has issued a bond on a public blockchain, Goldman’s DLT solution is underpinned by a private blockchain.
Mathew McDermott, head of Digital Assets at Goldman said, “I’ll speak from a highly regulated U.S. bank. We are actually not allowed to do anything on a public blockchain, be it permissionless or otherwise. The rationale being safety and soundness. Most of the development you will see certainly from the U.S. banks, JP (Morgan), ourselves and many of the others, will be on a private blockchain.” The Goldman platform has been used for a European Investment Bank (EIB) bond issuance and to tokenize a sovereign green bond for the Hong Kong Monetary Authority (HKMA).
He acknowledged the velocity, speed and low cost of transacting on a public blockchain, particularly a layer 2 solution. That was one of the reasons for Goldman’s digital assets platform design. It has a smart contract layer where the transaction activity happens, but the final settlement is on the underlying blockchain. And that’s ‘currently’ a private blockchain.
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