Goldman Sachs sets to trades Bilateral Crypto Options
The banking giant is looking to further expand its crypto derivatives offerings.
Goldman Sachs Group is exploring offering crypto Over-The-Counter Bilateral Options (OTC), signalling the bank’s deepening participation in helping institutions trade digital-currency derivatives.
According to Bloomberg, the global investment banking, securities and investment management firm is among a few Wall Street banks at the early stage of exploring these options, still in their infancy, that allow trades to be customized so that crypto holders such as hedge funds and Bitcoin miners can hedge risks or boost yields.
Only a few cryptocurrency firms, such as Genesis Global Trading, Galaxy Digital Holdings, and GSR, offer it as of now. Few days ago, Chicago-based high-speed trading firm DRW Holdings through its own cryptocurrency OTC trading desk Cumberland revealed the intention to offer bilateral over-the-counter (OTC) derivatives in options.
Goldman is already offering options and futures trading in Bitcoin and Ethereum. Last year, it opened up trading of non-deliverable forwards, a derivative tied to Bitcoin’s price that pays out in cash.