Bitcoin: Goldman Sachs in talks with FTX for cryptocurrency trading

Disturbing license – The FTX Cryptocurrency Exchange could enter into a strategic partnership with Goldman Sachs. This collaboration would ultimately allow the crypto platform to compete with derivatives brokers in traditional finance. This scenario is not to be excluded, given the stock market projects that go beyond the confines of the cryptosphere.

FCM license soon in hand for FTX thanks to Goldman Sachs?

Goldman Sachs will discuss this with FTX the integration of cryptographic derivatives trading services. Goldman Sachs’ US president Brett Harrison said the company has “several FCMs already committed to integrating technologically with the exchange.”

An FCM or futures commission agent is an intermediary authorized to trade futures or options contracts on them.

This FTX integration would concern:

  • direct trading of futures contracts;
  • grouping of customers;
  • the possible establishment of an access ramp to FTX for Goldman Sachs;
  • offering stock options to clients.

For FTX, such a partnership could allow it to obtain a license change from the CFTC. This would allow it to operate as a cryptocurrency exchange and derivatives brokers.

The role of commission agent in derivatives is currently performed by financial institutions such as Goldman Sachs.

With such a license, the American giant could do without intermediaries who would not be part of its privileged partners, but not only …

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Future giant of traditional finance?

This project, which could grant an FCM license to FTX, is met with resistance from the Futures Industry Association. Represents intermediaries in derivative products.

The Association is particularly concerned about this the crypto platform only expands beyond the crypto sphere. It would therefore constitute a strong competitor on the traditional finance derivatives markets.

These fears could be fueled by the recent actions of the cryptocurrency exchange showing a growing interest in traditional finance.

FTX US had in fact announced in a press release dated May 19, 2022, the upcoming launch of FTX shares. The latter will offer regulated trading of US shares and exchange-traded funds.

FTX Stocks has the particularity of offering its users the possibility of making deposits in USD coins (USDC) on the platform.

Goldman Sachs seems to want to develop a joint project with FTX at all costs. Bank CEO David Solomon had reportedly met FTX founder Sam Bankman-Fried in March 2022. They reportedly discussed the Goldman Sachs proposals to support FTX development.

A venerable financial institution is contacting a crypto platform! Nobody knows what will come out of this partnership. Join FTX now, the leading cryptocurrency exchange platform. You will benefit from a lifetime reduction on your trading fees (affiliate link, see conditions on the official website).

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