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Goldman Sachs Clients Trade Bitcoin Derivatives as Citi Discusses Crypto Services

Summary:
Large American banking organizations are rushing into the cryptocurrency industry, according to recent reports. Goldman Sachs, a former Bitcoin critique, has enabled its institutional clients to trade BTC derivatives, while Citigroup is looking into releasing crypto-related services amid growing demand. Goldman Clients Trade BTC Derivatives Out of the largest US-based banking institutions, Goldman has perhaps the most controversial history with the crypto space. The entity had a digital asset trading desk in 2017, halted it a year later when prices were down, and restarted it in 2021 when the market exploded. In the meantime, the giant investment bank claimed cryptocurrencies are not an asset class during a conference call. However, the tides have turned completely (for

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Large American banking organizations are rushing into the cryptocurrency industry, according to recent reports. Goldman Sachs, a former Bitcoin critique, has enabled its institutional clients to trade BTC derivatives, while Citigroup is looking into releasing crypto-related services amid growing demand.

Goldman Clients Trade BTC Derivatives

Out of the largest US-based banking institutions, Goldman has perhaps the most controversial history with the crypto space. The entity had a digital asset trading desk in 2017, halted it a year later when prices were down, and restarted it in 2021 when the market exploded.

In the meantime, the giant investment bank claimed cryptocurrencies are not an asset class during a conference call. However, the tides have turned completely (for now), and Goldman is frequently dipping its toes into digital asset endeavors.

The latest one, reported by Bloomberg, reads that the bank has already enabled its institutional customers to trade with non-deliverable derivatives tied to BTC’s price paid out in cash.

The organization is also buying and selling Bitcoin futures in block trades on CME Group, using Cumberland DRW as a partner to protect itself against the cryptocurrency’s notorious volatility.

Goldman’s Asia-Pacific head of digital assets, Max Minton, believes the new initiative is “paving the way for us to evolve our nascent cash-settled cryptocurrency capabilities.”

“Institutional demand continues to grow significantly in this space, and being able to work with partners like Cumberland will help us expand our capabilities.” – he concluded.

Other recent reports claimed that Goldman is actively exploring ways to launch a Bitcoin ETF and custodial services.

goldman
Goldman Sachs. Source: Reuters

Citi Looking Into Crypto Too

According to the Financial Times, Citigroup Inc, another massive US banking institution, is also planning to enter the cryptocurrency field.

Citi seems to be in an earlier stage as the coverage said the bank hasn’t decided on the precise services it will offer. Instead, the organization is discussing trading, custody, financial, or all of them.

Itay Tuchman, the bank’s global head of foreign exchange, noted that Citi had seen a “very rapid” increase in customer demand in bitcoin and other digital assets. He outlined that the interest comes from a broad spectrum of clients, including asset managers and family offices.

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