According to a report by, Goldman Sachs is looking into derivatives trading using bitcoin and other cryptocurrencies as part of a possible partnership.
In an interview with Barron’s, Brett Harrison, president of FTX’s U.S. Division, stated that’multiple FCMs [futures Commission Merchants] have already committed to integrating technologically,’. “There are many large ones that you can probably name.
FTX is reportedly seeking a modification to its license from the Commodities Futures Trading Commission, which would permit the exchange to operate as both a cryptocurrency exchange (CryptoX) and as an intermediary for leveraged derivatives trade (FCM). This role is currently held, interestingly enough, by institutions like Goldman Sachs.
This is a clear sign of a dramatic wind change in institutions that would normally handle counterparty transactions with leverage. They are now switching to more experienced services. The report stated that FTX appears to be absorbing some market share from those who were historically considered direct competitors on Wall Street.
If FTX succeeds in this endeavor, it could threaten the removal of intermediaries like Goldman. FTX will provide derivatives in-house and not require the cooperation of any other financial institution. The Futures Industry Association has been a source of friction as it represents many intermediaries that would be affected by FTX. They fear that FTX will expand beyond cryptocurrencies to other markets.
According to reports, the FTX integration might include direct trading of futures contracts, intermingling clientele, a possible on ramp being provided to Goldman for access to the exchange or capital topping ups (stock options that increase equity positions for clients).