Goldman Sachs (GS.US) began launching non-deliverable forward (NDF) transactions linked to the price of Bitcoin on Thursday, local time. According to a report, Goldman Sachs announced the launch of a cryptocurrency trading platform.
This department will become part of Goldman Sachs’ Global Currency and Emerging Markets department and will be headed by Mathew McDermott, head of the digital asset department. The bank will use Cumberland DRW as its trading partner to avoid the huge volatility risk of Bitcoin by buying and selling Bitcoin futures in CME Group block trades.
Not long before, there were reports that Goldman Sachs had begun to provide BTC transaction services to customers through NDF.
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NDF is a derivative that is linked to the price of Bitcoin. Observers pointed out that this choice of derivatives reduces Goldman’s exposure to BTC because these instruments are purchased and settled in cash.
Max Minton, Head of Digital Assets of Goldman Sachs Asia Pacific, said, “In this field, institutional demand continues to grow significantly. Being able to cooperate with partners like Cumberland will help us expand our product capabilities; new products will help us develop new cash-settled The capabilities of cryptocurrency products paved the way.”
It is reported that Goldman Sachs first announced its intention to conduct bitcoin futures and NDF transactions in March. In the same month, Goldman Sachs also restarted its cryptocurrency trading department. Although Goldman Sachs is cautiously entering the trading market, it has been actively seeking other ways to benefit from blockchain technology.
The company is participating in the recently announced Ethereum USD 120 million digital bond sale and participated in the USD 15 million financings of crypto intelligence startup Coin Metrics earlier this week. In addition, peers Morgan Stanley and JP Morgan Chase have announced plans to provide Bitcoin funds to clients.
(Via)
