According to various sources, such integration would offer “trading futures directly, introducing clients and acting as an on-ramp to the exchange, or providing capital top-ups for clients.”
American multinational investment bank and financial services company Goldman Sachs is reportedly joining forces with cryptocurrency exchange FTX US to explore crypto derivatives. According to the statement, some of the bank’s derivatives products would be integrated into FTX US crypto derivatives listings.
Currently, FTX US is requesting The US Commodity Futures Trading Commission (CFTC) to provide it with a license modification. This way, the platform would be able to function as an exchange and intermediary between the counterparties in leveraged derivatives trades, “handling the collateral and margin requirements in-house when borrowed money is in play,” according to the official statement.
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CFTC has solicited public opinions on the crypto exchange's suggested revision. The primary regulatory authority also believes that FTX's idea is worth investigating as it might result in a monopoly by giant banks, including Goldman Sachs.
On top of that, sources close to the matter stated that such collaboration would offer “trading futures directly, introducing clients and acting as an on-ramp to the exchange, or providing capital top-ups for clients.”
The President of FTX US Brett Harrison also shared his opinion and implied that futures commission merchants (FCM) might benefit from such a proposal in the long run. He claims that legislation forcing brokers to post substantial sums of money as middlemen has raised their pressure, “but clearing houses have not had to put as much skin in the game."
FTX US is a new US-regulated cryptocurrency trading platform. The San-Francisco-based company was founded in 2020 and believes in growing the digital currency ecosystem.
Last month, FTX US announced that it would launch the first-ever stock exchange platform dubbed FTX Stocks to allow retail shareholder's accounts receive funding by using fiat-backed stablecoins such as USDC.