Goldman Sachs, Wells Fargo and Morgan Stanley are pursuing tokenization—the process of bringing financial and real-world assets onto a blockchain—as a strategic opportunity rather than a competitive threat, according to recent quarterly earnings disclosures.
Each bank is emphasizing different applications. Goldman Sachs CEO David Solomon drew a parallel to the shift toward electronic stock trading nearly 50 years ago, which initially raised concerns but ultimately expanded the firm's equities business. "The developments are obviously creating more products, greater activity, potentially new clients, broader distribution channels," Solomon said on his firm's earnings call.
Goldman has been investing in digital asset infrastructure for years, building its GS DAP platform for tokenized assets in 2022 and working on tokenizing bonds, money market funds and real estate. The bank participated in a half-day test run of a tokenization service from the Depository Trust & Clearing Corporation (DTCC) in July. Solomon noted that tokenization could help cut costs, automate transactions and make assets easier to trade, though he cautioned that current activity remains small.
Wells Fargo is already processing cross-border payments using tokenized deposits, with funds reaching recipient accounts in two minutes or less, according to CFO Michael Santomassimo. He described the service as currently in production but at small volume. The bank views tokenized deposits as a way to expand cross-border payments business without building a large international branch network, unlike some global competitors.
For Morgan Stanley, tokenization represents an opportunity to strengthen client advisory relationships. CFO Sharon Yeshaya said that while the technology makes it faster and easier to move assets, clients will continue to need guidance. Morgan Stanley has been investing in digital capabilities across its wealth management and institutional securities businesses.
