Goldman Sachs Adds New Bitcoin Product

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Goldman Sachs has introduced a new financial product based on bitcoin, Bloomberg reports.

Investment bank non-deliverable forwards allow clients to place bets on cryptocurrency rate changes and receive settlements in traditional currency. Such contracts are a type of futures in which the two parties agree in advance on the date and price of the transaction.

To hedge “known bitcoin volatility,” the bank intends to use Chicago Mercantile Exchange (CME) futures, with which it will conduct block deals through its trading partner Cumberland DRW. According to Bloomberg, the bank non-publicly opened the new instrument to clients last month. The information that he was going to launch non-deliverable forwards on bitcoin appeared on the network back in 2018.

In March, Goldman Sachs relaunched its cryptocurrency trading division amid increased demand from institutional investors. In the same month, it was revealed that he plans to introduce cryptocurrency derivatives to high net worth clients.

It was also reported this week that over the coming months, clients of hundreds of American banks will gain access to bitcoin through NYDIG.

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