Goldman Sachs Explores Crypto: Tokenization, Stablecoins, and Prediction Markets
During Goldman Sachs’ fourth-quarter earnings call in January 2026, CEO David Solomon revealed that large internal teams, including senior leadership, are actively assessing how blockchain-based technologies could enhance and accelerate the firm’s core business operations over the long term.
Solomon also noted that in the opening weeks of 2026, he personally met with executives from major prediction market platforms to better understand their business models and the evolving regulatory landscape. The discussions reflect a broader shift on Wall Street—from treating crypto infrastructure as peripheral to examining how it can be integrated into traditional financial systems.
Tokenization: Changing the Rails, Not the Asset
Tokenization sits at the center of Goldman’s strategy. At its core, tokenization involves converting traditional financial assets into digital representations on a blockchain. The underlying asset remains unchanged; only the infrastructure used to move and settle it evolves.
Goldman Sachs has already tested this approach through its GS DAP platform in collaboration with BNY Mellon, offering tokenized money market funds to institutional clients. The use of blockchain rails enables faster settlement, improved efficiency, and reduced operational friction.
The broader tokenized real-world asset (RWA) market, excluding stablecoins, expanded significantly in 2025, reaching an estimated $18–33 billion by year-end. Growth was largely driven by tokenized U.S. Treasuries, private credit, and money market funds, underscoring institutional demand for regulated, yield-bearing products. Tokenized Treasuries represented a substantial share of this activity, highlighting a preference for familiar instruments delivered through more efficient infrastructure.
Stablecoins: Digital Cash With Regulatory Clarity
Goldman Sachs also pointed to stablecoins as a key area of focus. Stablecoins are digital tokens designed to maintain a stable value, typically pegged to the U.S. dollar. They function as programmable cash—moving with the speed of crypto while retaining the characteristics of traditional money.
Regulatory clarity accelerated stablecoin adoption in 2025, following the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in July. The legislation established the first federal framework for dollar-backed stablecoins, mandating 1:1 reserve backing, enhanced transparency, and regulatory oversight at the federal or qualifying state level. Larger issuers are required to transition toward federal supervision.
This regulatory foundation catalyzed institutional participation, driving total stablecoin market capitalization to approximately $306 billion by late 2025—nearly 50% growth over the year.
Prediction Markets Gain Institutional Attention
Prediction markets represent a newer, but increasingly relevant, segment of Goldman’s crypto exploration. These platforms allow participants to trade contracts based on real-world outcomes, such as elections, economic data releases, or interest rate decisions.
In the U.S., several platforms now operate under Commodity Futures Trading Commission (CFTC) oversight, reducing legal uncertainty and making the sector more accessible to institutional players. Kalshi, a fully regulated CFTC-designated contract market, is among the platforms that experienced sharp growth in 2025, particularly after regulatory and legal developments clarified the status of event-based contracts.
Trading volumes surged during major global events, supported by expanded product offerings and a clearer regulatory environment.
Why Wall Street Is Moving On-Chain
Goldman Sachs’ engagement sends a strong signal across financial markets: blockchain technologies are shifting from experimental tools to strategic infrastructure. Rather than focusing on speculative assets, institutions are prioritizing regulated, utility-driven applications such as tokenization and stablecoins.
Tokenized real-world assets alone surpassed $7 billion in on-chain value during 2025, reflecting growing confidence in blockchain-based settlement systems. The appeal lies in tangible benefits—faster settlement cycles, fewer intermediaries, and lower operational costs over time.
This dynamic also explains why firms like JPMorgan and Galaxy Digital are expanding their own tokenized offerings. Institutional capital tends to favor conservative, regulated products, and in that context, stablecoins and tokenization align naturally with existing financial workflows.
