Goldman Sachs and Wells Fargo say tokenisation is a growth play

Key points

• Goldman CEO David Solomon said tokenisation activity is "small and at the margin" today but could add products, clients and distribution.
• Wells Fargo CFO Michael Santomassimo said its tokenised deposit system settles cross-border payments in two minutes or less, on small volume.
• Morgan Stanley CFO Sharon Yeshaya said faster asset movement will not remove the need for advice.

Goldman Sachs, Wells Fargo and Morgan Stanley have each framed tokenisation as an opportunity rather than a threat, using this week's third-quarter earnings calls to explain where they see the business heading. CoinDesk reports that none of the banks put a revenue figure on the opportunity, and each stressed a different part of it: trading, payments and advice.

Goldman chief executive David Solomon was asked whether tokenisation, decentralised finance and prediction markets could take trading revenue from the firm. He compared the shift to the move to electronic stock trading almost 50 years ago, which Goldman adapted to as its equities business grew. Solomon said the developments are creating more products, greater activity, potential new clients and broader distribution channels, though he described current activity as small and at the margin.

At Morgan Stanley, chief financial officer Sharon Yeshaya said faster, easier movement of assets will not remove the need for advice. The bank has been investing in digital capabilities across wealth management and institutional securities, and Yeshaya identified tokenisation as another opportunity without announcing a new product.

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