A sign is displayed in the reception of Goldman Sachs in Sydney, Australia, May 18, 2016. REUTERS/David Gray
Goldman Sachs Group Inc (GS.N) is allowing Wall Street investors to trade with a derivative tied to bitcoin prices, Bloomberg News reported on Thursday.
Goldman, the fifth-largest U.S. bank, has opened up trading with non-deliverable forwards that eventually pay out in cash, the report said.
The bank will protect itself from the cryptocurrency’s volatility by buying and selling Bitcoin futures in block trades on CME Group (CME.O) using Cumberland DRW as its trading partner, according to the report.
Goldman declined to comment on the report.
The move comes after the Wall Street bank restarted its cryptocurrency trading desk earlier this year, with plans to begin dealing bitcoin futures and non-deliverable forwards for clients. read more
Bitcoin has been gaining mainstream acceptance in recent months. CNBC reported earlier this year that Morgan Stanley (MS.N) in March became the first big U.S. bank to offer its wealth management clients access to bitcoin funds. read more
JPMorgan Chase & Co (JPM.N) is also preparing to let certain clients invest in an actively managed bitcoin fund for the first time, CoinDesk reported last month.
Bank of NY Mellon Corp (BK.N) in February formed a new unit to help clients hold, transfer and issue digital assets, while BlackRock Inc (BLK.N), the world’s largest asset manager, has also added bitcoin as an eligible investment to two funds. read more
Our Standards: The Thomson Reuters Trust Principles.