The investment bank Goldman Sachs launched non-deliverable forwards (NDFs) on Bitcoin with settlement in fiat currency. Bloomberg reports.
To hedge against volatility, Goldman Sachs will use the services of the Chicago Mercantile Exchange, taking positions in futures. The bank’s trading partner will be Cumberland DRW.
Max Minton, head of Goldman Sachs’ digital assets in the Asia-Pacific region, noted growing institutional demand in the space.
“[NDFs] broaden our capabilities in cash-settled cryptocurrency instruments,” he said.
To test hedging methods, the bank offered bitcoin derivatives to clients in April without prior notice. Coindesk reported, according to an informed source.
Earlier Forklog wrote that Goldman Sachs will resume cryptocurrency operations, expanding its range of instruments, including NDFs.
On May 6, 2021, the investment bank led a funding round for the analytics firm Coin Metrics.