Goldman Sachs, a US-based leading investment bank is planning to integrate a couple of its derivative products into the digital derivative offerings by FTX.US.
A Deal between Giants
Talks between FTX and Goldman Sachs have been on for some time. They have discussed issues related to public listing and regulatory help. Sachs has offered to leverage its own derivative services and tools in hopes of expanding to digital asset derivatives.
Meanwhile, FTX.US (FTX’s US subsidiary) is presently looking to provide brokerage services in exchange for its offerings which are derived.
This is a good development. It means crypto exchange will no longer have to solely rely on FCMs (Future Commission Merchants). The crypto exchange shall be able to deal with its margin and collateral needs internally.
The Problem of Monopoly
On the other hand, CFTC(The US Commodities Futures Trading Commission) has its suspicions. It is seeking the opinion of the public on the ongoing crypto exchange developments. CFTC is worried that a deal between Sachs and FTX could result in the monopoly of large investment banks (like Goldman Sachs).
After the integration of the derivative services of Sachs and FTX, you would gain a direct access to trading futures. You will also be able to offer capital top-ups for your clients. According to FTX, an integrated setup will help transform the market into a stable and safe environment for trading.
The trading of crypto derivatives has always been a contentious topic. It is prohibited by many European countries.