It was fake news – Goldman Sachs is going all-in on bitcoin derivatives, crypto rises

goldmansachsBitcoin fell on "fake news" that Goldman Sachs was dropping crypto trading desk plans

Fake news says Goldman Sachs. Yesterday US investment bank Goldman Sachs‘s chief financial officer Martin Chavez shot down the Business Insider report claiming the bank had dropped the crypto trading desk initiative.

Fake news says Goldman Sachs

“I never thought I would hear myself use this term but I really have to describe that news as fake news,” he said in remarks he made at the TechCrunch Disrupt Conference in San Francisco.

In fact, far from not opening a trading desk, Goldman is creating its own tradeable instrument for bitcoin; it sounds like the venerable investment bank is committed to crypto.

Chavez explained that the bank is crafting a bitcoin derivatives product of a type known as a “non-deliverable forward”.

“The next stage of the exploration is what we call non-deliverable forwards (NDFs), these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,”

NDFs are often used in less liquid markets such as emerging market foreign exchange, because the physical product never changes hands (hence non-deliverable) and instead the two parties to a trade settle on the basis of currency movements by either party making a netted cash settlement. Unlike with normal futures, the settlement takes place before the expiry date of the contract.

The bitcoin futures traded on the Chicago Board of Exchange, and its much larger competitor the CME, are cash-settled at the expiry date.

The Goldman chief said it was responding to “clients want it” in developing the product.

“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges,” Chavez revealed in a CNBC interview.

He said the bank’s work “would be evolving over time” to no set timeline.

Chavez added: “Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but it’s not here yet.”

The chief executive said it would be  a “long road” to a physical bitcoin product because of the custody issues yet to be resolved.

Custody is an issue all mainstream financial institutions that are looking to crypto are grapppling with. It is one of the factors holding back an exchange traded fund from being approved by the US Securities and Exchange Commission.

 

Top 100 crypto by market cap – biggest risers in past 24 hours, 7 September 13:00 GMT

Name Symbol Price USD % ch 7d
BitcoinDark BTCD 46.379161 191
Bitcoin Diamond BCD 2.096139 63.59
Holo HOT 0.001212 52.2
Dogecoin DOGE 0.005288 38.43
Dropil DROP 0.003406 34.53
ReddCoin RDD 0.003252 5.92
MCO MCO 4.547037 4.12
Monero XMR 113.527007 3.89
QASH QASH 0.223221 1.36
TrueUSD TUSD 1.007943 0.64
Gas GAS 6.981118 0.25
Tether USDT 1.002857 0.2
NEO NEO 19.755226 0.16
Verge XVG 0.014179 -0.29
NEM XEM 0.101688 -1.41
Stratis STRAT 1.529076 -1.58
TenX PAY 0.627288 -1.59
Bytecoin BCN 0.002101 -2.69
Nxt NXT 0.068447 -3.45
Populous PPT 4.137318 -3.76
Mithril MITH 0.301215 -4.55
Dash DASH 177.584570 -5.36
Stellar XLM 0.207535 -5.48
Siacoin SC 0.005707 -6.03
Bitcoin Cash BCH 506.957024 -6.06
Metaverse ETP ETP 3.108082 -6.11
aelf ELF 0.373444 -6.26
Cryptonex CNX 2.081706 -6.32
Litecoin LTC 56.550826 -6.54
Binance Coin BNB 10.039140 -6.76
Horizen ZEN 17.348454 -6.76
Bitcoin BTC 6468.563287 -7.28
Ethereum Classic ETC 11.828229 -7.29
Tezos XTZ 1.236476 -8.03
Theta Token THETA 0.091806 -8.59
VeChain VET 0.015578 -8.67
CyberMiles CMT 0.089366 -8.8
WAX WAX 0.068807 -9.32
Waves WAVES 1.897546 -9.74
BitShares BTS 0.104116 -9.77
Bytom BTM 0.179458 -9.93
Pundi X NPXS 0.001683 -10.2
Maker MKR 391.442594 -10.6
PIVX PIVX 1.020006 -10.77
Steem STEEM 0.830024 -10.97
XRP XRP 0.295456 -11.07
Emercoin EMC 1.360991 -11.34
KuCoin Shares KCS 1.238769 -11.42
Komodo KMD 1.159858 -11.48
OmiseGO OMG 3.739330 -11.51
Ardor ARDR 0.100390 -11.62
Status SNT 0.035928 -11.89
Aeternity AE 0.985631 -11.91
MaidSafeCoin MAID 0.230329 -11.98
FunFair FUN 0.015207 -12.35
Zcash ZEC 128.147521 -12.81
Decred DCR 36.703334 -12.92
Bitcoin Gold BTG 19.091800 -13.32
Chainlink LINK 0.268426 -14.06
ZCoin XZC 10.847184 -14.67
Nebulas NAS 1.562089 -14.7
Cardano ADA 0.084910 -15.42
Power Ledger POWR 0.164865 -15.54
DigiByte DGB 0.025931 -15.86
Dentacoin DCN 0.000287 -16.15
Qtum QTUM 3.890153 -16.16
TRON TRX 0.020792 -16.48
DigixDAO DGD 42.901798 -17
Zilliqa ZIL 0.036504 -17.03
Hshare HSR 2.584315 -17.06
Kyber Network KNC 0.444500 -17.14
0x ZRX 0.639399 -17.16
RChain RHOC 0.316284 -17.69
Bancor BNT 1.357200 -17.69
Ontology ONT 2.043125 -17.77
Loopring LRC 0.097531 -18.26
Golem GNT 0.141588 -18.54
IOST IOST 0.012176 -18.57
EOS EOS 5.069653 -18.63
Waltonchain WTC 3.914036 -18.71
Mixin XIN 182.939057 -18.71
GXChain GXS 1.160194 -19.18
Augur REP 15.946331 -19.37
Basic Att’n Tkn BAT 0.176161 -19.47
Huobi Token HT 1.708427 -19.48
IOTA MIOTA 0.571224 -19.65
ICON ICX 0.716857 -19.86
Lisk LSK 3.745371 -20.09
Decentraland MANA 0.060935 -20.21
MonaCoin MONA 1.168325 -20.42
Ethereum ETH 222.867619 -20.59
Elastos ELA 7.823444 -21.15
Nano NANO 2.407521 -21.36
Wanchain WAN 1.019227 -21.37
MOAC MOAC 1.770519 -22.85
Aurora AOA 0.016090 -24.02
Ark ARK 0.685317 -24.06
Kin KIN 0.000074 -24.57
Aion AION 0.442260 -29.25
Bitcoin Private BTCP 3.021070 -32.37

 

About the Author

Pete Winston
I live and breathe crypto and have a small holding (BTC, ETH, EOS and XLM) that isn’t life-changing, so move along hackers! You can email me here: petewinston@coinintelnews.com

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