New York City lender Goldman Sachs offers bitcoin derivatives to investors

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New York City lender Goldman Sachs offers bitcoin derivatives to investors

Goldman Sachs Group Inc., the New York City-headquartered fifth-largest American lender, had been putting forward an option for Wall Street investors to cash in on a non-deliverable bitcoin derivative, though traders were not allowed to withdraw or send their digital assets in form of bitcoin, a Bloomberg News report published late on Thursday had unveiled citing unnamed banking sources familiar with the subject-matter.

Aside from that, the Bloomberg News report had quoted banking sources as saying that the 152-year-old legacy banking institute, one of 28 top-tier US lenders which are allowed to borrow directly from the US Central Bank, had opened up a trading desk that was handling non-deliverable crypto assets, though investors holding Goldman Sachs’ bitcoin derivatives would have to withdraw their digital assets in cash as beforementioned.

On top of that, the New York City-based American multinational banking institute and financial services provider, would insulate it from cryptocurrency volatilities by trading the digital asset in block trades on CME Group, while Cumberland DRW would act as its trading partner, the report added.

Goldman offers bitcoin derivatives

Nevertheless, although Goldman Sachs had declined to comment over the report while being asked, a number of Wall Street lenders had already resumed crypto trading earlier this year with Morgan Stanley being the first large US lender to provide its clients with an access to bitcoin-based funds.

Besides, latest Goldman Sachs’ move to hand out bitcoin derivatives to Wall Street investors, came against the backdrop of a CoinDesk report, which claimed last month that JPMorgan Chase & Co. had been working out a plan, which in effect would enable its clients to invest on a bitcoin fund for the first time on record.

BlackRock Inc., the world’s largest asset manager, had decided to add bitcoin as an eligible investment a month earlier amid growing lobbying efforts from crypto founders and philanthropists.