Goldman Sachs files patent for a blockchain-based interbank-settlement solution

Goldman Sachs filed a patent application for a solution that integrates blockchain technologies into the interbank settlement mechanism.

According to the documents, it is based on smart contracts applied to financial instruments. The latter include fractional-reserve banking, insurance, bonds, tokenised products and margin loans.

The patent is designed to facilitate transactions in a networked computing environment suited to token requirements. The system’s architecture is oriented toward this aim.

Earlier it emerged that the institution is ready to invest in crypto projects, whose valuations fell after the collapse of FTX.

According to Matthew McDermott, head of the digital assets division, the firm intends to expand the staff from the current 70 employees.

Earlier in June 2022, Goldman Sachs presented non-deliverable forwards (NDFs) based on Ethereum. The London-based Marex Financial was a partner in the initiative.