Investment bank Goldman Sachs has launched Bitcoin-based Non-Deliverable Forwards (NDF) with traditional currency settlement. Bloomberg writes about it .
To hedge volatility, Goldman Sachs will use the services of the Chicago Mercantile Exchange, taking positions in futures. The investment bank’s trading partner is Cumberland DRW.
Max Minton, Head of Digital Assets at Goldman Sachs Asia Pacific, pointed to the growing institutional demand in this area.
“[NDFs] are developing our capabilities in cash-settled cryptocurrency instruments,” he said.
Earlier Hodlmonks wrote that Goldman Sachs will resume operations with cryptocurrencies , expanding the line of instruments, including on NDF.
As a reminder, on May 6, 2021, the investment bank took the lead in the financing round of the analytical firm Coin Metrics.