A new report indicates that Goldman Sachs, the investment banking giant, has quietly begun signing up a small number of customers for it’s yet to launch bitcoin trading product.
The report originated from The Block who, according to a source with knowledge of the matter, wrote that the New York investment bank is also exploring ways to custody crypto for its customers.
A Small Number Of Clients To Trade The Derivative
The 149-year-old bank has been a darling of the crypto world ever since it announced intentions to launch a bitcoin product for its customers. Now observers have been waiting with bated breath for the bank to make its big splash on the crypto market.
It appears this may be finally happening according to the undisclosed source. The firm has been onboarding a “small number of clients” to trade the derivative actively.
The derivative consists of a non-deliverable forward, a cash-settled product that can be compared to a futures contract which doesn’t trade on an exchange.
Additionally, the bank is still considering the launch of custody services for cryptocurrency assets.
The source also discredits a report that appeared on the Abacus Journal which claimed that the bank was “actively exploring the creation of a non-deliverable forward for ether.”
It’s a move that would have been a significant stamp of approval for Ethereum and other altcoins as well.
Currently, BTC derivatives are available on several regulated trading platforms in the US including options exchanges CBOE and CME. Both of these platforms offer cash-settled BTC futures contracts.
Consequently, it’s something that has given investors a reason to believe that they are likely to expand their crypto offerings in the future.
CBOE has not been shy to express its desire to remain as the leader when it comes to crypto derivatives marketplace. However, CME has been less enthusiastic about the crypto market despite launching an ether price reference rate.
Also, other platforms are pushing for crypto derivatives. One such company is Ledger X, an institutional crypto derivatives firm that offers some bitcoin products.
It has recently been reported to be building support for ether as well and its waiting approval from the Commodity Futures Trading Commission (CFTC).
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.
