Mathew McDermott outlines why regulatory clarity is key to unlocking institutional capital in crypto.
At TOKEN2049 in Dubai, Mathew McDermott, Goldman Sachs’ Head of Digital Assets, stressed that crypto’s next phase of growth hinges on regulatory clarity. Speaking during a fireside chat, McDermott emphasised that for the market to truly scale, big institutions must have the confidence — and legal framework — to enter with serious capital.
“One of the things you need is scale,” he said. “And for that, you need big institutions actively participating across different parts of the market.”
Momentum Building in the US
McDermott noted positive developments in the United States, highlighting ongoing lobbying efforts aimed at encouraging the current administration to implement practical crypto regulations. He believes this momentum could have global benefits, boosting investor confidence and encouraging wider participation in the crypto economy.
He specifically pointed to two stablecoin bills currently under discussion. Smooth regulatory adoption of stablecoins, he suggested, could significantly speed up digital currency use among major financial players. “We’re watching very closely,” McDermott added.
Goldman’s Active Crypto Strategy
Far from being a passive observer, Goldman Sachs is already deeply involved in the digital asset space. The bank is actively trading crypto-related futures, options, and ETFs, while also investing heavily in blockchain infrastructure projects.
Additionally, Goldman is exploring the tokenisation of traditional assets — a move McDermott believes could transform financial markets in the coming years. He also revealed that Goldman has developed its own Digital Asset Platform, which is now preparing for a spin-off with strategic partners. “We’re confident we’ll divest it next year,” he said.
Tokenisation: The Next Frontier
Looking ahead, McDermott predicts that tokenisation, particularly for money market funds, could see rapid adoption as regulations mature. Institutional clients, he noted, are increasingly ready to embrace digital asset solutions, provided a clear regulatory framework is in place.
As the crypto world awaits regulatory moves, industry leaders like Goldman Sachs are positioning themselves for the next wave of digital finance.
