One of the world’s largest investment banks, Goldman Sachs, is reportedly looking to offer over-the-counter bilateral crypto options, as per Bloomberg. The move signals the bank’s intent in helping institutions trade cryptocurrency derivatives after a landmark 2021 in which Bitcoin’s price soared to record levels.
The New York-based firm is among the few financial institutions exploring such offerings, sources told Bloomberg. The bilateral options allow trades to be customized so that crypto holders such as hedge funds and Bitcoin miners can mitigate risks accordingly or boost yields.
Goldman Sachs’ potential move represents an early penetration in the crypto derivates market for Wall Street firms. Without a complete skeleton for regulatory oversight, banks have been hesitant to jump into the sphere. For the moment, the options space has only been tested by a handful of firms, namely Genesis Global Trading Inc., Galaxy Digital Holdings Ltd., and GSR. However, Goldman Sachs did not shut its doors to the benefits crypto has to offer. A report published in May 2021 acknowledging as a burgeoning asset class was followed up by access to Bitcoin and Ether funds to its clients.
The revelation comes right after US President Joe Biden signed an executive order yesterday, acknowledging the need for a “coordinated and comprehensive approach to digital asset policy.” As part of the order, the US government would also “address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy.”