Wall Street Banks Frame Tokenization as Growth, Not Threat — SkimNews
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- Goldman Sachs CEO David Solomon said tokenization could expand rather than erode trading revenue, paralleling electronic stock trading's growth ~50 years ago; the bank built GS DAP in 2022 and participated in DTCC's tokenization trial in July, though he acknowledged current activity is "small and at the margin."
- Wells Fargo is processing cross-border payments via tokenized deposits in two minutes or less, CFO Michael Santomassimo said, with the bigger play being geographic reach without building a global branch network.
- Morgan Stanley CFO Sharon Yeshaya argued easier asset movement will increase — not decrease — demand for advisory services, framing tokenization as a wealth management opportunity.
- Goldman, Wells Fargo and Morgan Stanley offered no revenue projections for tokenization during Q3 earnings calls, positioning the technology as additive to existing businesses rather than disruptive.
Why it matters: Each bank tied tokenization to a distinct core franchise — trading for Goldman, cross-border payments for Wells Fargo, advisory for Morgan Stanley — but Solomon's admission that activity is "small and at the margin" and the absence of revenue figures from all three suggest the opportunity remains conceptual rather than material for now.
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