Goldman Sachs Pushes for 24/7 Tokenized Treasury Trading—Because Wall Street Never Sleeps

Goldman’s latest play? Turning US Treasuries and money markets into round-the-clock digital assets. Because why let blockchain have all the fun when traditional finance can slap ’tokenized’ on old products and call it innovation?

The move signals a seismic shift—banks now racing to digitize legacy instruments rather than fight crypto. Tokenized Treasuries could unlock billions in trapped liquidity... or just give hedge funds new ways to overleverage.

One thing’s certain: when Goldman starts building, the ’institutional adoption’ narrative gets another boost. Just don’t ask about settlement times.

US policy opens doors for financial institutions

Policy developments have removed major regulatory hurdles. The Office of the Comptroller of the Currency’s Interpretive Letter 1183, issued in March, allows national banks to conduct crypto custody, stablecoin operations, and distributed ledger settlements without prior approval.

The Federal Reserve, FDIC, and OCC collectively withdrew previous 2023 guidance discouraging crypto activity. The reversals align U.S. rules with global jurisdictions and are part of broader deregulatory efforts under the Trump administration.

Goldman is also considering spinning off its Digital Asset Platform (GS DAP) into a separate entity. This initiative would allow the platform to serve multiple institutions, aiming for shared infrastructure to improve efficiency and accelerate liquidity, which is essential for the secondary trading of tokenized Treasuries and other assets.

However, challenges persist. Goldman continues to favor permissioned blockchains to meet compliance requirements. Additionally, bank custodians still face regulatory capital requirements tied to on-chain holdings under SEC guidance. Liquidity in tokenized bonds remains limited, suggesting secondary markets will require time to mature.

The bank’s roadmap positions it to introduce tokenized government debt products that can be traded outside standard market hours. The approach reflects an effort to meet evolving institutional demand and align blockchain integration with traditional market mechanics.