Goldman Sachs CEO hints at following JP Morgan’s lead and launching a stablecoin

Goldman Sachs CEO David Solomon has hinted that the banking giant may launch its own cryptocurrency following announcements from Facebook and JP Morgan

Goldman Sachs CEO David Solomon has revealed that the banking giant is currently carrying out “extensive research” on asset tokenisation and stablecoins following the announcement of JP Morgan and Facebook’s native tokens.

Speaking to French publication Les Echos, Solomon said Goldman Sachs could “absolutely” follow in the footsteps of banking rivals JP Morgan.

“Assume that all major financial institutions around the world are looking at the potential of tokenisation, stablecoins, and frictionless payments,” he said in an interview on Friday.

The emergence of Facebook’s native cryptocurrency, Libra, has piqued the interest of several institutions and companies in the past week, with Solomon admitting that he finds the “principle of tokenisation interesting”.

“I think regulators around the world are watching what’s going on. They wonder how it will work and are very attentive to payment flows,” he added.

“There will be an evolution in regulation, that’s certain.”

Uncertainty surrounding the regulation of cryptocurrencies and digital assets has added to the volatility of the asset class. In recent weeks, Bitcoin surged to a yearly high of $14,000 before dramatically falling to as low as $10,300.

The sharp decline in the price of Bitcoin led many to question its potential use cases as a store of value and a payment method for merchants.

At the time of writing, Bitcoin remains in a bullish formation situated around $12,000 after having recovered from Wednesday night’s correction.

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