Goldman Sachs, Wells Fargo and Morgan Stanley Detail Tokenization Plans on Q3 Calls

Wells Fargo CFO Michael Santomassimo said the bank's tokenized deposit system is already in production and processing cross-border payments in two minutes or less, though volume remains small so far, and could help it win international payments business without building a large foreign branch network. Goldman Sachs CEO David Solomon said on Tuesday's Q3 earnings call that tokenization, decentralized finance, and prediction markets could expand the firm's trading business rather than eat into revenue, comparing the shift to electronic stock trading nearly 50 years ago while noting current activity is small and at the margin. After building its GS DAP tokenized asset platform in 2022 and joining a half-day run of a Depository Trust & Clearing Corporation tokenization service in July, Goldman Sachs is evaluating how to use the DTCC service on a larger scale as tokenized stocks gain traction. Morgan Stanley CFO Sharon Yeshaya said faster and easier asset transfers in a tokenized environment will still leave investors needing wealth management advice, while none of the three banks put a revenue figure on the opportunity or announced new product launch dates. "The developments are obviously creating more products, greater activity, potentially new clients, broader distribution channels." — David Solomon, CEO of Goldman Sachs