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Goldman Sachs and its plans to offer ether options

The American multinational bank is planning to move beyond bitcoin and extend its crypto trading to ether, Ethereum’s token
Goldman Sachs

The American multinational bank Goldman Sachs is planning to move beyond bitcoin and extend its crypto trading to ether, Ethereum’s token.

According to Mathew McDermott, head of digital assets at Goldman Sachs, the financial institution will start offering options and futures trading in ether. He said that customers are seeing the decreasing price of cryptocurrencies as a good moment to start investing. This is why the bank is trying to simplify transactions exchange-traded notes that track ether.

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“We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.”

Mathew McDermott, head of digital assets at Goldman Sachs

Goldman Sachs attempted to enter the crypto market before but backed away when bitcoin crashed in 2018. 

Back in March, the bank started engaging with bitcoin futures and in May also began trading non-deliverable forwards, which are a type of financial contract. Non-deliverable forwards permit investors to hypothesize on an asset’s future price and are utilized in commodity markets or foreign exchange. The desk engages with operations including blockchain technology and CBDCs.

Goldman Sachs is also involved in the European Investment Bank (EIB) project. EIB issued €100 million in bonds using Ethereum technology. The news was spread in April and was followed by an immediate price increase of ether. The sale was then confirmed the next day by a report of the bank. The project was led by Goldman Sachs, Banco Santander, and Societe Generale, which served as joint managers.

“On 27 April 2021, the EIB launched a digital bond issuance on a blockchain platform, deploying this distributed ledger technology for the registration and settlement of digital bonds, in collaboration with Goldman Sachs, Santander, and Societe Generale.”

EIB report
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