Goldman Sachs is Now Offering Bitcoin (BTC) Derivatives Products, No Ether (ETH) Contracts For Now

  • Goldman Sachs is now offering bitcoin (BTC) "non-deliverable forward contracts" to a select few clients.
  • The American multinational investment bank is not planning to launch ether-based products yet, despite earlier reports claiming it would.

Giant Wall Street investment bank, Goldman Sachs, has reportedly started offering bitcoin (BTC) derivatives products to its clients. At present, the New York-based financial institution is not planning on offering similar contracts for Ether (ETH) or other major cryptocurrencies.

According to TheBlock, Goldman Sachs will not be rushing to launch new crypto-related products, and its bitcoin non-deliverable forward contracts (“a derivative product tied to futures”) is only available to a select few clients of the bank for now.

With over $900 billion in total assets, Goldman Sachs is currently looking into various options which would allow it to offer custody solutions for cryptocurrencies. There had also been reports earlier this month that the multinational financial services company was “actively exploring the creation" of an ether-based non-deliverable forward contract.

Inaccurate Reports Regarding Ether Futures

This was first reported by the Abacus Journal, however, a source closely following Goldman Sachs’ operations told TheBlock that the bank was not planning to introduce any type of derivatives product for ether (anytime soon).

Moreover, it might not be possible at this time to launch an ether-based product as ether futures contracts are not currently issued by any regulated US-based exchange. The Chicago Board Options Exchange (Cboe) Global Markets had said earlier this year that it would soon be introducing ether futures contracts, however, the exchange holding company has not yet followed through with its plans.

Meanwhile, sources familiar with Goldman Sachs’ internal operations have said that the bank’s customers are not really looking for any new crypto-related products at this time.

Coinbase Receives "Qualified Custodian" Status

Although many institutional investors have begun to take more interest in cryptocurrencies, they have not yet made substantial investments in them due to their volatile nature. Institutional clients are also looking for reliable custodial solutions for digital assets.

San Francisco-based crypto exchange, Coinbase, has been actively working to develop custodial solutions for cryptos. Launched in July of 2018, Coinbase Custody has now become an independent qualified custodian under New York State Banking Law.

Coinbase Custody’s qualified custodian status allows the company to offer regulated custodian services for bitcoin (BTC), ripple (XRP), litecoin (LTC), bitcoin cash (BCH), ether (ETH), and ethereum classic (ETC).

BlackRock CEO: Clients Not Interested In Crypto

Although it appears that crypto firms are trying to meet the demands of institutional clients by introducing products specifically for their use, many would-be investors are trying to better understand crypto assets.

Sources close to Goldman Sachs have said that the institution's clients have been contacting its senior bankers to inquire about how they can “break into the market.”

Interestingly, Larry Fink, the CEO of BlackRock, an American global investment management firm with over $6.2 trillion of assets under management, said in July:

I don’t believe any client has sought out crypto exposure. I’ve not heard from one client who says, ‘I need to be in this.'

Larry Fink

Bitcoin Ransomware Attack: Google Disables Baltimore Officials’ Gmail Accounts

The Baltimore City government has been under siege since May 7, as it was hit with a ransomware attack that saw hackers demand $100,000 in bitcoin and officials refuse to pay the ransom. In a new development, Google disabled officials’ Gmail accounts being used as a turnaround.

According to The Baltimore Sun, the Baltimore City government created Gmail accounts to work during the ransomware attack, as the city’s servers have been disrupted to the point their emails aren’t working.

Recently, however, emails sent to several of the newly created Gmail addresses returned messages claiming the “email account that you tried to reach is disabled.” It was found that Google has considered these business accounts that need to be paid, instead of free individual Gmail accounts.

James Bentley, a spokesperson for Mayor Bernard C. “Jack” Young, noted Baltimore planned to purchase a business plan from Google so the accounts could be restored. The news outlet quoted him as saying:

They disabled them because they deemed them to be business accounts. Their position is these accounts are circumventing their paid service

City Council President Brandon Scott added that meanwhile his staff was appealing the suspension with Google, although he hadn’t been briefed on the problem. A spokeswoman for Baltimore’s health department claimed she was able to see received old emails, but not send or receive new ones.

Per her words, there as no notice on why the account was disabled. On its website, Google claims it’ll suspend accounts used for sending spam, distribute malware, abuse children, violate copyright, or for other illicit purposes.

As CryptoGlobe covered, Baltimore was hit with a ransomware attack earlier this month that brought its real estate industry to a halt and crippled some of its essential systems. So much so the city’s collection and transfer of property taxes and water bills have been affected.

The hackers attacked the city’s servers with a new type of ransomware known as “Robbinhood,” and are demand a 13 BTC ($102,900) ransom to stop the whole attack. They also gave the city the option to pay 3 BTC ($23,700) to decrypt a specific system.