Wall Street Giant, Goldman Sach, has reportedly started to load up on clients for its upcoming Bitcoin derivative product.
According to The Block, sources close to the situation state that the bank has started actively trading the non-deliverable forward with a small number of clients. The source also states that the bank is exploring crypto custody for customers.
A non-deliverable forward essentially works in the same way as a futures contract but not traded on exchanges making entry easier for those who are unable to trade with the market directly.
Earlier this month it was reported that Goldman Sach was in the process of delivering a similar derivative for Ether, however, the Block’s source states that this isn’t the case, dashing hopes of a reprisal for the recently embattled cryptocurrency. The source qualified their statement by alleging that a non-deliverable forward may not even be possible for Ether at this juncture, due to the fact that it isn’t being traded on any regulated exchange in the US.
Interestingly the CBOE announced earlier this year that it was in the process of creating such a derivative for Ether, however, this creation has yet to be confirmed by the Exchange.