Goldman Sachs executes its first bitcoin derivatives trades

Goldman Sachs performed its first cryptocurrency trade and formally set up its bitcoin desk on Friday, two months after US BT announced a new return to the market.

In a memo sent to employees by the Financial Times on Thursday, Rajesh Venkataramani, head of the big currency, informed employees that the bank had “successfully operated” the business of two types of bitcoin-linked derivatives.

The bank said on March 1 that it would re-launch its Mothblade Cryptocurrency Trading Desk due to the growing demand from institutional clients. Goldman was one of the first banks to set up a crypto operation, but the creation of the desk in 2018 coincided with a spectacular bitcoin price crash that prompted the bank. Quit quietly Preliminary project.

The value of Bitcoin, the largest Cryptocurrency It has grown in size by 95 percent since the beginning of the year after a spectacular rally last year that saw it become one of the best financial assets in the world. On Friday, Bitcoin traded at 57,385.

Matthew McDermott, head of the Digital Resources team, said the recovered Goldman Trading Desk would not deal in cash cryptocurrencies but would instead place trading futures and non-distributable forwards as part of an initial “quite narrow” push into the space.

Initially, the bank will only allow its initial brokerage and private bank clients access to its trading team and cryptocurrency research.

Venkataramani will lead the cryptocurrency trading team and McDermott will oversee the regions, including the central bank’s digital currency and blockchain. The new team sits between the bank’s global currencies and emerging market business.

“I am pleased to announce the formation of the firm’s cryptocurrency trading team, which will be our central desk for managing cryptocurrency risk for our clients,” Venkataramani wrote in a memo sent on Thursday, which was first published. CNBC.

The bank has also launched a cryptocurrency dashboard for clients to provide market data and information related to Bitcoin and options. Due to regulatory concerns, banks are unable to trade cash cryptocurrencies, and are restricted to regulated markets such as Bitcoin futures on the Chicago Mercantile Exchange.

Venkataramani added, “As we continue to increase our market presence, we are moving on to new liquid suppliers to help expand our offer,” Venkataramani added.

McDermott said in a podcast in early March that the bank has increased demand for cryptocurrency services since last year, noting that the current rally in Bitcoin is driven by professional clients rather than retail investors.

Goldman is a Claws Large U.S. banks that have recently announced temporary efforts to enter the growing crypto arena.

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