Goldman Sachs is intensifying its internal initiatives surrounding tokenization, stablecoins, and prediction markets regulated by the CFTC, as confirmed by CEO David Solomon during recent discussions with leading prediction market companies.

During Goldman Sachs’ fourth-quarter earnings call, Solomon highlighted the company’s focus, stating that various teams are dedicated to exploring how tokenized assets and regulated prediction markets can integrate into Goldman’s trading and advisory services.

“We have numerous talented individuals at the firm dedicated to scrutinizing both tokenization and stablecoins,” Solomon remarked.

Engagements with Prediction Market Platforms

“In the past two weeks, I personally engaged with the leadership of two major prediction market firms and dedicated time to understand their operations,” Solomon noted. “We have a dedicated team collaborating with these platforms to investigate potential opportunities.”

Marketplaces like Kalshi and Polymarket enable traders to transact in contracts linked to significant global events, such as elections, economic indicators, and policy decisions. Certain platforms fall under the jurisdiction of the Commodity Futures Trading Commission, which, according to Solomon, positions these products similarly to conventional financial instruments.

“When considering these activities—especially those regulated by the CFTC, they resemble derivative transactions,” Solomon elaborated. “I can surely identify avenues where these intersect with our core business.”

Furthermore, Solomon indicated that Goldman is also evaluating additional technologies in the crypto sector related to tokenization and stablecoins. He emphasized that there is a substantial team collaborating with senior leadership to assess prediction markets, tokenization, and related fields, exploring ways to both “broaden and hasten” Goldman’s operations.

Legislative Focus and Timing

“Currently, various initiatives are underway in Washington, notably regarding the Clarity Act. Just this Tuesday, I was in D.C. discussing issues paramount to us within this context,” Solomon mentioned.

The Digital Asset Market Clarity Act has sparked tensions between financial institutions and the cryptocurrency sector over various matters, including yield and rewards associated with stablecoins. This conflict has postponed what many view as a pivotal legislative measure for the industry.

Solomon advised that widespread adoption may not occur swiftly.

“While there’s considerable enthusiasm surrounding these developments, the speed of change may not align with the expectations set by some analysts,” he cautioned. “Nevertheless, I believe these innovations are crucial, and we are dedicating substantial resources [to them].”