Goldman Sachs Group Inc, the American investment banking and financial institution giant, has begun trading a sort of Ethereum-linked derivatives as it aims to expand its influence in the crypto markets beyond Bitcoin-focused products.
The trade was initially reported by Bloomberg on Monday, and it is an Ethereum non-deliverable forward (NDFs), a foreign exchange derivatives contract sold over the counter that pays out based on the price of ether.
Goldman Sachs, which was supposed to provide institutional investors with indirect exposure to cryptocurrencies, has now demonstrated its willingness to put its money where its mouth is in terms of its adoption of digital currencies.
The financial corporation has backed a number of crypto startups, including but not limited to CertiK, a blockchain security firm, indicating that it believes in the technology’s future and the importance of having the appropriate partners to help it flourish.
According to the source, Marex Financials has been named as Goldman Sachs’ counterparty for the new derivatives product.
Goldman Sachs has experienced a number of upheavals in the digital currency ecosystem. Whilst it was one of the first banks to offer Bitcoin trading desks, it paused for a while before resuming these activities in March of last year, as reported by Blockchain.News at the time.
While the addition of Ethereum-based derivatives products is intended to strengthen its Bitcoin trading position, the move has shown greater ambitions than previously stated.
For what it’s worth, the digital currency ecosystem is experiencing a significant price correction, with the industry’s most valuable coins falling to levels not seen in about 18 months.
The fact that Goldman Sachs could launch a new product despite the industry’s bearish momentum demonstrates that its statements that institutional demand for cryptocurrency is increasing are correct, and it intends to be at the forefront of this embrace.