Backed by increasing client demand and a more favorable regulatory environment in the United States, Goldman Sachs is accelerating the expansion of its crypto offerings, notably through the establishment of a cutting-edge cryptocurrency trading desk and pioneering work in tokenization technologies.

This article explores the inside story of Goldman Sachs' cryptocurrency plans, including the evolution of its crypto trading desk, its strategy for digital assets, and the implications for the broader financial industry.

Goldman Sachs' Crypto Trading Desk: A New Frontier

Goldman Sachs' initial venture into cryptocurrency trading dates back to the latter part of the 2010s. In 2017, it was reported that Goldman was preparing to establish a trading desk to make markets in digital currencies such as bitcoin.

This move positioned Goldman Sachs to become one of the first large Wall Street firms to actively engage in cryptocurrency markets, offering clients exposure through futures and other derivatives without the bank needing to custody the underlying assets directly.

The trading desk opened doors for institutional clients to access Bitcoin futures trading on regulated exchanges such as CME Group, enabling a sophisticated approach to crypto trading characterized by non-deliverable cash-settled instruments that reduce the complexities of crypto custody and delivery.

More recently, Goldman Sachs has rebooted and doubled down on its cryptocurrency trading desk amid a surge in market interest and prices in 2023 and 2024. The bank expanded its crypto derivatives offerings, adding structured products like non-deliverable forwards tied to bitcoin.

This furthers clients' ability to gain crypto exposure through regulated financial instruments, driving institutional participation in the expanding crypto market. The cryptocurrency desk is led by Mathew McDermott, Global Head of Digital Assets, underlining the bank's commitment to delivering a comprehensive digital asset strategy.