Goldman Sachs and other Wall Street banks are looking to expand their presence in the crypto space through a partnership with FTX.
The investment bank plans to integrate leveraged derivatives trading, Barron’s writes, citing its sources. The cooperation between FTX and Goldman Sachs should bring to the bank such advantages as direct trading in futures, access to the user base of the crypto exchange, replenishment of the capital of the bank’s clients.
Recall that at the end of April, the heads of the bank and the crypto exchange discussed the advisory support to the exchange from Goldman Sachs in negotiations with US regulators and a possible initial public offering (IPO). Also during the negotiations, funding for FTX projects in the future was considered.
Goldman Sachs is looking to expand into the crypto space and integrate derivatives trading services, while FTX is looking to increase its presence in the traditional financial industry.
The crypto exchange is currently negotiating with the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). FTX seeks to process collateral and margin requirements that are typically handled by brokers like Goldman Sachs acting as futures commission merchants (FCMs).
FTX claims that the integrated model improves market stability and frees up capital for brokerage firms acting as FCMs.
Earlier, a representative of the investment bank said that the fall of the crypto asset market would not have a significant impact on the US economy, despite the fact that the United States accounts for almost a third of the digital asset market.