Goldman Sachs Doubles Down on Crypto with Derivatives, Trading Team

While banks once shunned digital assets entirely, their mood has changed on the topic as more and more of their clients add it to portfolios and corporations add it to the balance sheet.

article-image
share

key takeaways

  • Investment bank plans to offer non-deliverable forwards to clients
  • Memo to staff outlines the creation of a dedicated crypto desk

Goldman Sachs announced late this week a far-reaching digital assets strategy that involves offering bitcoin derivatives to clients as well as opening a dedicated trading desk for cryptocurrency. 

While banks once shunned digital assets entirely, their mood has changed on the topic as more and more of their clients add it to portfolios and corporations add it to the balance sheet. Guidance from the Office of the Comptroller of Currency on custody help gave a green light to banks to offer these assets to clients, and it’s likely that approval of a bank charter for “crypto banks” created a spirit of competition in the industry.  

The derivatives that Goldman offers to clients would be non-deliverable and settled in cash, which means that Goldman would never have to custody bitcoin nor work out an arrangement to deliver it to its clients. This is similar to what most regulated derivatives trading desks offer, such as CME and Bakkt. Reports say that Goldman would use CME’s bitcoin futures market to buy and sell bitcoin futures as blocks as a counter to volatility. 

A Goldman memo obtained by CNBC says that bank personnel are engaged in trading two types of bitcoin-linked derivatives: bitcoin non-deliverable forwards, and CME bitcoin futures. Both of which are settled in cash. The team will be under the bank’s global currencies and emerging markets division. Goldman also said that it had launched a digital assets dashboard for clients, providing real-time market data.

Gene Grant, CEO of VRBex, said that Goldman’s entry into the market provides leverage and flexibility for institutional investors. Goldman entering the market should force a repricing of outstanding over-the-counter derivatives, he believes.

“The crypto markets have been systematically underpricing or outright ignoring credit risk. Derivatives are bilateral contracts – put another way, they are contracts made between the two parties – and each party depends upon the other side to actually meet their obligations. Failures do actually happen, and that risk of one side not meeting their obligations is credit risk,” he told Blockworks. “Goldman will set the standard for low-risk credit. They are a well-capitalized and well-regulated financial institution. The existing crypto-focused incumbents are not in the same league – they are not transparent about their capitalization, controls and management, and oversight.” 

Recently, digital assets data company Coin Metrics, co-founded by crypto-twitter personality and Castle Island Ventures partner Nic Carter, closed a $15 million round led by Goldman Sachs. Late last month data provider Skew was acquired by Coinbase for an undisclosed amount. 

The trading desk will be led by Mathew McDermott and will report to Rajesh Venkataramani, the bank’s London-based head of GCEM Foreign Exchange Options Trading.

Venkataramani noted in the memo that, “the firm is not in a position to trade bitcoin, or any cryptocurrency (including Ethereum) on a physical basis.”

This story was updated at 1:22 p.m. EDT.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

REPORT_Template.png

Research

The Sonic blockchain is leveraging redesigned airdrop incentives and its FeeM program to propel DeFi activity and attract institutional capital, setting the stage for ecosystem growth. Within this environment, leading protocols Shadow Exchange and Silo are poised to asymmetrically benefit due to innovative features and favorable valuations, despite facing ecosystem dependency and competitive pressures. This positions them as compelling, potentially shorter-term, investment opportunities contingent on Sonic's sustained success.

article-image

Bitcoin needs a price, but its magic runs deeper

article-image

Circle had a pretty successful first day of trading, but what’s next for the stablecoin issuer?

article-image

Solana’s USDC caught a boost after being paired with the TRUMP memecoin

article-image

The stablecoin issuer’s successful first day of trading is likely to spur more crypto IPOs, industry watchers say

article-image

Job openings rallied and continuing claims stalled ahead of May’s employment report

article-image

A group of Twitch streamers battle for bitcoin. Will their chats help them?