Goldman Sachs moves to let investors bet on bitcoin's price with new derivatives: report

advertisement

Goldman Sachs has moved to offer derivatives products tied to the price of bitcoin to its clients, according to Bloomberg.

The derivatives in question are non-deliverable forwards, which are contracts between two parties that agree to settle at a certain date the difference between the spot price and the contracted price. In essence, these NDFs allow Goldman clients to speculate on the price of bitcoin.

The contracts pay in cash, and on Goldman's side, the firm "protects itself from the digital currency's famous volatility by buying Bitcoin futures in block trades on CME Group Inc. using Cumberland DRW as its trading partner," per Bloomberg.

According to the report, Goldman quietly began offering these derivatives to its clients last month. In 2018, the New York Times reported that Goldman was planning to create non-deliverable forwards tied to bitcoin.

That Goldman has moved in this direction is unsurprising, given reports in late March that the Wall Street megabank was looking to offer bitcoin-centric investment vehicles to its wealth management clients. The scope of those offerings includes derivatives, as reported at the time.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post
More