According to reports, Goldman Sachs is looking to spin out a blockchain-based technology platform to streamline institutional trading and reduce settlement times.

According to the Wall Street behemoth, the GS DAP platform will eventually be 'industry-owned.' To increase its commercial use cases, it has teamed up with Tradeweb Markets, a trading rates and credit platform.

Although banks have long shown interest in utilizing blockchain to trade assets like cash and bonds, a significant revamp of the technological infrastructure supporting financial markets would be necessary to implement this on a wide scale.

However, the institutions often hesitate to adopt a platform controlled by a rival.

“Establishing a new, standalone company independent of Goldman Sachs and its Digital Assets business will help to provide the future runway for digital financial services by ensuring a fit-for-purpose, long-term solution,” according to the bank.

Mathew McDermott, the bank's global head of digital assets, stated that the spin-out is expected to be implemented over the next 12 to 18 months.

The bank will keep expanding its digital assets division once GS DAP is split out. Following the industry's significant victories this year, including the legalization of spot bitcoin exchange-traded funds and the election of Donald Trump, who has pledged to turn the nation into the ‘crypto capital of the planet,’ institutional interest in the cryptocurrency has skyrocketed.