Goldman Sachs’ new cryptocurrency platform offers social sentiment for investing

Adam Dell, entrepreneur and veteran of the Marcus retail banking unit of Goldman Sachs, is launching Domain Money, a new cryptocurrency platform that will use social sentiment to help investors.

Dell, which is also the brother of Dell Technologies Inc. DELL,
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founder Michael Dell, assembled a team from Goldman Sachs Group Inc. GS,
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for Domain Money. It secured $33 million in Series A funding from Bessemer Venture Partners, Maveron, RRE Ventures, SV Angel, Salesforce.com CRM,
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founder Marc Benioff and Joe Lonsdale. Domain Money plans to launch a Series B fundraiser later in 2022.

“I’m a serial entrepreneur and I love building things,” Dell said. “The opportunity to work with 25 of my former colleagues from Goldman was a very exciting thing. Startups have a flexibility and ability to execute that large corporations don’t have.

The New York-based company officially launched on Tuesday with 43 employees, many of whom worked with Adam Dell when he was chief product officer at Marcus from 2018 to 2021. Domain Money plans to hire up to 30 more people this year.

“Thematically, we are interested in blockchain technologies that perform a basic banking function, such as DeFi money markets,” Dell said. “We believe there is a class of investors who are familiar with and comfortable with Fidelity, Schwab and ETrade who do not feel that these platforms give them robust access to the asset class. cryptographic. We are trying to serve this customer.

Domain Money offers equity and crypto investment strategies actively managed by an expert investment team from Goldman Sachs, Morgan Stanley MS,
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and Bridgewater Associates.

Domain Money’s unique features include its Signal product, which monitors social media and assigns a social sentiment score to each type of asset. Domain Money tracks the health of the protocol by reviewing GitHub submissions within the blockchain developer community. The company also measures the flow of funds into and out of exchanges, an indication of market sentiment.

“Looking at each of these components of the blockchain ecosystem, it’s clear to me that this technology is going to become the future of finance,” Dell said.

Dell, CEO of Domain Money, said he sees a bright future for blockchain technology as the backbone of a rapidly growing, more efficient transaction system.

To illustrate the size of the current market, Dell pointed out that Visa Inc. V,
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processed around $10 trillion in transaction volume in 2021, while Ethereum, the popular blockchain-backed cryptocurrency, accounted for around $11 trillion in volume.

The market for decentralized financial platforms – or DeFi transactions, where consumers and institutions can borrow and lend money – totals around $200 billion in 2022, up from $1 billion in 2018. Non-Fungible Tokens (NFTs) were $23 billion in 2021. Stable Assets increased to $155 billion in 2021 from around $5 billion in 2018.

The firm’s team, made up of veterans of Goldman Sachs and Bridgewater Associates, manage baskets of stocks and cryptocurrencies for investors less familiar with the asset class.

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