The banking giant and FTX have been in talks for some time. On this occasion, the possibility of a derivatives trade agreement was raised.
- Goldman and FTX discuss to integrate into derivatives trading offerings.
- FTX is seeking regulatory approval to expand its futures offering.
- The talks are another sign of Wall Street’s interest in crypto.
The titan of Wall Street , Goldman Sachs is apparently considering a focus on cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. derivatives in partnership with a major crypto exchange.
According to a report in Barron’s the bank is in talks with the cryptocurrency exchange FTX for a possible alliance that would integrate some of its cryptocurrency functions. A person familiar with the matter advanced the plans to that media outlet.
The integration of the services of FTX could be mutually beneficial, since it would allow the Goldman incorporate some of its derivative a financial instrument deriving its value from the value of an underlying asset. products into crypto-derivative offerings from FTX US the U.S. arm of the exchange. The subsidiary recently acquired a U.S.-regulated derivatives exchange and has been looking to provide brokerage services for that offering.
Goldman and FTX have been talking
Conversations with Goldman appear to be part of the exchange’s broader plans to expand its cryptocurrency offerings in the country and become a investment platform a place to buy, sell and store cryptocurrency ” all in one “ . According to the source, one of the issues being discussed is the possibility that the bank will help to FTX US a convertirse en un comerciante de comisión de futuros (FCM).
Meanwhile, a second source added that the commitments of Goldman to integrate with FTX could include the ” trade futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. directly, introducing clients and acting as an on-ramp to the exchange, or provide capital capital is most commonly defined as the large sum of money you would use to invest. top-ups for clients s”.
The announcements are in sync with a previous report that previewed a possible alliance between the banking giant and FTX .
In April, a report in Financial Times reveló a meeting between the CEO of FTX Sam Bankman-Fried, and the chief executive officer of Goldman Sachs, David Solomon, in which the two discussed possible ways in which the bank could advise FTX about the latter’s plan to offer retail trading of cryptocurrencies.
Shortly before that, in March, the U.S. arm of the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. ya had applied for approval from the Commodity Futures Trading Commission (CFTC) for margin trading of cryptocurrency derivatives. A license from the regulator would allow FTX US act as an exchange and intermediary between counterparties in leveraged derivatives transactions. At that time, as reported by The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. the request was subject of a congressional hearing with the chairman of the CFTC.
FTX US seeks a place among the titans
According to the most recent reports, the cryptocurrency company has been moving forward with these plans by gaining the trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. of some of the key players of Wall Street . El presidente de FTX US Brett Harrison, also concurred in an interview with Barron’s in which the FCM proposals are being ” absolutely ” calentando .
It should be noted that an FCM is responsible for collecting margin trading money from clients. Achieving that status, which historically has been in the hands of the largest brokerage firms such as Goldman would allow the cryptocurrency exchange to handle collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. and margin requirements internally rather than relying on an external FCM.
“We already have several FCMs engaged in technical integration with the exchange. There are so many great names you can probably name.” Dijo Harrison .
As he points out Cointelegraph , FTX has argued that an integrated brokerage model would help make the market an area or arena, online or offline, in which commercial dealings are conducted. more stable and free, allowing it to calculate margin requirements every 30 seconds, rather than waiting until the next day to liquidate positions. However, regulators have shown some reluctance so far.
Beyond these plans, the talks between FTX y Goldman appear to be part of the financial institution’s broader footprint of expansion in the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset space. Last year, Goldman began offering trading in the futures of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. de CME Group, and since then the bank has taken several steps to expand its cryptocurrency product offering.
- FTX makes way to offer Bitcoin and Ethereum a decentralized open-source blockchain with smart contracts functionality. futures to its U.S. users, reveals its president
- Coinbase is an American company that operates a cryptocurrency exchange platform. received first Bitcoin-backed loan from Goldman Sachs
- Goldman Sachs contemplates offering a “full spectrum” of Bitcoin investments
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash