One of the largest financial institutions in the world, Goldman Sachs, is launching it’s own type of derivatives contracts of bitcoin for a select clientele, according to a unsourced report by the Block.
Derivatives
Derivatives are tradeable instruments that gives a trader exposure to the price movement of an asset, with this case being bitcoin, without owning any sort of bitcoin.
The bank has apparently already onboarded clients to tirade its forward contracts on bitcoin, a type of derivative that is tied to the markets future. The block also reported this information during the same week, citing a “direct source.” Simply put, crypto trading at Goldman Sachs will still continue to be strictly limited to derivatives, and does not involve any physical cryptocurrencies changing hands.
Even so, the bank is still not in any rush to push out more crypto derivatives products, according to the report by The Block.
Goldman Sachs
Golden Sachs has undertaken steps into the crypto world and is being closely monitored by the crypto community due to its fame and position as one of the most prominent financial institution. Most people believe that if Goldman Sachs embraces the future of cryptocurrency, everyone else will follow in as well.
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