Goldman Sachs has announced plans to spin out GS DAP, its blockchain-based technology platform, to streamline institutional trading and reduce settlement times. The platform aims to become an industry-owned distributed solution, marking a significant step in the integration of blockchain into traditional financial markets.

Developed under Goldman Sachs’ Digital Assets division, GS DAP leverages distributed ledger technology to enhance market connectivity and infrastructure composability. The spin-out, expected to occur within 12–18 months, will establish GS DAP as an independent entity, ensuring a scalable and long-term solution for digital financial services.

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, stated, “Delivering a distributed technology solution to a wide cross-section of financial market participants has the potential to redefine market connectivity and unlock new commercial opportunities.”

To expand GS DAP’s commercial applications, Goldman Sachs has partnered with Tradeweb Markets, integrating its trading and liquidity expertise across the fixed-income spectrum. This collaboration is anticipated to introduce new capabilities to the digital financial market, enhancing access, liquidity, and interoperability.

Chris Bruner, Chief Product Officer at Tradeweb, added, “Our partnership with Goldman Sachs aims to usher in a new era of market structure and connectivity, leveraging blockchain to advance the financial ecosystem.”

The decision aligns with growing institutional interest in blockchain applications, particularly after industry milestones such as the approval of spot Bitcoin ETFs. Earlier pilot projects, like the Canton Network, have demonstrated the feasibility of using blockchain to achieve real-time settlement while adhering to regulatory requirements.

As GS DAP transitions to an industry-owned model, Goldman Sachs will continue scaling its Digital Assets division, further cementing its role in the evolution of blockchain in financial markets.