Goldman Sachs, global investment bank, has been on the news in a pretty negative light lately. Many investors were waiting for the company to make a big splash into the market, however, Goldman Sachs did not live up their expectations, postponing the plans to build a cryptocurrency desk. After such an announcement, there were rumors that the company dropped the intention of creating crypto trading desk, but they fortunately turned out to be fake.
Currently, it looks like Goldman Sachs (GS) is onboarding clients to adopt its new Bitcoin derivative product. As The Block reported, Goldman Sachs is introducing a small number of institutional investors to its bitcoin non-deliverable forward contracts, but it is not hurrying up to roll out new tradable products.
The report reads:
“The source said customers would call senior bankers and traders for direction on where the space is going and to learn how they can break into the market.”
It is notable that the report contradicts an earlier publication by Abacus Journal, according to which Goldman Sachs was “actively exploring the creation” of a non-deliverable forward for ether, the native asset of the Ethereum platform. Such a step would enhance approval for Ethereum and altcoins in general.
However, sources close to the Block claim that this is not true, as the bank is not pursuing the creation of an ether derivative. Furthermore, they reveal that the clients aren’t necessarily looking for new products, but that doesn’t mean that they are not interested in the market.
Currently, Bitcoin derivatives are available for trading on several regulated US trading platforms, among them are exchanges like CME and Chicago Based Options Exchange (CBOE). Both of them offer cash-settled bitcoin futures contracts and promise to expand their crypto offerings in the future.
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Goldman Sachs is a leading global investment banking, securities and investment management firm that offers a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and has offices in all major financial centers around the world.
Goldman Sachs is very active with its venture investments. Together with Google Ventures, Kleiner Perkins and Silicon Valley Bank, the company made a $25 million investment in Veem, a blockchain-powered payment service for small businesses. Recently, the bank led the $57.5 million Series B financing round of BitGo, a company which develops secure wallets for crypto custody.
In May of this year, Goldman Sachs announced its crypto trading desk, promising to offer bitcoin non-deliverable forward contracts. But whether Goldman Sachs could develop such a product is not yet clear, since such futures do not trade on any regulated exchange in the U.S.