Goldman Sachs and Ethereum work together to launch an NDF ETH
A new online report suggests that Goldman Sachs is working with Ethereum to launch a Non-Deliverable Forward (NDF) investment product based on future ETHs.
The report comes from TheICOJournal, who has developed the habit of writing inventive stories full of anonymous sources. If we take the ratio at face value, however, it seems that "several sources" have confirmed the news that Ethereum and Goldman Sachs are collaborating to launch an NDF.
A non-deliverable forward is a forward or futures contract in which the counterparties regulate the difference between the price or the contracted NDF rate and the prevailing spot price or spot rate on an agreed notional amount. It is used in various markets, including foreign exchange and commodity markets.
ICO magazine states that Goldman Sachs already offers a bitcoin NDF to customers. As far as we know, this is not in the public domain and there is no evidence that Goldman Sachs offers a bitcoin NDF or any bitcoin investment product to customers. We have heard rumors that Goldman Sachs is working on an encrypted trading and on some encrypted investment products, but they have not publicly released a crypto-related product or platform since September 2018.
However, The Official Journal insists, on the basis of its mysterious sources, that Goldman Sachs and the Ethereum Foundation are collaborating to launch a non-deliverable forward product based on future ETHs.
The ICO Journal cites three internal sources as evidence that Goldman Sachs and the Ethereum Foundation are collaborating to launch an NDF ETH.
Here's what the first source said:
"Goldman has been known to push the envelope and develop products that benefit both the company and their customers – in this case it is clear – very clear: the clamor of cryptographic assets among the UHNW investor class is strong and continuous, and Goldman replies, they have assured clients that an Ethereum NDF is available no later than the first few months of 2019. The purpose of announcing the timing of certain customers is to "hold the dust" with respect to the encryption of the assets so from insured people coming to Goldman.The Goldman cryptography team has been tasked with checking as many cryptocurrencies as possible on their customers, with particular attention to custody and regulatory security. "This is the message."
The second source mentioned in the report states that Goldman Sachs is not even examining other cryptographic NDFs: they are only trying to start an NDF ETH. Goldman Sachs does not want to run an NDF bitcoin or NDF for any other cryptocurrency.
Here's what the second source had to say about this topic:
"In terms of which products could be available, I would not call them products, as in the plural.Your attention should be on Ethereum.It is the only other cryptocurrency that has been dubbed a commodity, making it a natural choice for us ( Goldman.) And the focus is on an NDF designation, which covers the bases from a regulatory point of view and gives customers the access they want, so expect an early version of 2019. "
Finally, The Ico Journal cites a third source. They claim that this third source is a Goldman Sachs employee who has access to insider trading knowledge. This source states that an Ethereum NDF "will happen" and that it is not about if, but when.
"Customers believe that Bitcoin and Ethereum, on balance, are the digital resources that can be invested and have asked for solutions since the end of 2017. Obvious reasons why this would be the case.The noise around Ethereum is only increased when the price is The customers look at these resources as the names of the internet after the dot-com crash.We are simply filling out a need based on significant customer requests.I will add, I doubt we include any other cryptos for a significant amount of time afterwards. addition of Ethereum: Difficult to make that case that any other resource has an intrinsic value. "
As we said before, we are becoming increasingly skeptical about The ICO Journal and its sources. The online publication claims to have dozens of sources at major banks, financial institutions, regulatory institutions and government organizations. The site always seems to have the perfect source available at the perfect time. Even all the sources cited by The ICO Journal seem to write identically with similar grammar and punctuation. Get everything you read about The ICO Journal with a grain of salt.
Does Goldman Sachs prepare to release a Crypto investment product?
In the last six months Goldman Sachs has made headlines throughout the crypto community. At the beginning of this year, it was reported that Goldman Sachs was developing its own encryption desk.
Then, at the beginning of this month, the crypto markets were shaken when it was revealed that Goldman Sachs had completed the development of its commercial encryption. These reports turned out to be a joke and later it was revealed that Goldman Sachs continued to actively develop cryptographic products.
Up to now, it is not entirely clear what kind of cryptography products Goldman Sachs is doing. ICO magazine states that Goldman Sachs is preparing to release a non-deliverable bitcoin forward investment product (NDF) or Ethereum NDF. This latest report states that an NDEF Ethereum is unavoidable. We will have to wait until the beginning of 2019, however, to see if the ICO Diary report is true.