Goldman Sachs is looking to expand its derivatives offerings in the cryptocurrency space through working with crypto exchange FTX, Barron’s reported Tuesday.
Currently, FTX offers crypto trading to US investors through FTX.US, a US-regulated derivatives exchange. Now, Goldman Sachs could move to onboard some of its derivatives products onto that exchange, according to the report.
The report comes as FTX seeks a license modification from the Commodity Futures Trading Commission, a source told Barron’s.
The new license would allow FTX to play the role of middleman for leveraged derivatives trading. Usually, brokerages like Goldman Sachs play the intermediary role, or so-called “Future Commission Merchants” (FCM).
“We already have several FCMs committed to technically integrating with the exchange,” said Bretty Harrison, president of FTX.US.
Per Barron’s, one of those FCMs in talks with the crypto firm is Goldman Sachs.
FTX has previously argued that an integrated brokerage model would help make the market more stable, though the US has barred most crypto exchanges from offering leveraged trading.
Source: africa.businessinsider.com
