Disturbing license – The FTX cryptocurrency exchange could forge a strategic partnership with Goldman Sachs. This collaboration would eventually allow the crypto platform to compete with derivatives intermediaries in traditional finance. This scenario cannot be ruled out, given the stock market’s projects that go beyond the borders of the cryptosphere.
FCM license soon in hand for FTX thanks to Goldman Sachs?
Goldman Sachs would discuss with FTX about the integration of crypto derivatives trading services. Goldman Sachs U.S. President Brett Harrison said the company has “several FCMs already committed to technologically integrating with the exchange.”
An FCM or futures commission agents is an intermediary authorized to trade futures contracts or options on them.
This integration of FTX would concern:
- direct trading of futures contracts;
- customer pooling;
- the possible establishment of an on-ramp to FTX for Goldman Sachs;
- offering stock options to clients.
For FTX, such a partnership could allow it to obtain a license modification from the CFTC. This would allow it to operate as a cryptocurrency exchange and derivatives broker.
The role of commission agent in derivatives is currently provided 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…
>> Looking for an ambitious crypto platform? Join FTX (affiliate link) <<
Future giant of traditional finance?
This project, which could confer a license from FCM to FTX, is met with resistance from the Futures Industry Association. It represents intermediaries in derivative products.
The Association is particularly concerned that the crypto platform only expands beyond the crypto sphere. It would thus constitute a strong competitor on the markets for derivatives of traditional finance.
These fears could be fueled by recent actions from the cryptocurrency exchange which shows a growing interest in traditional finance.
FTX US had indeed announced in a press release dated May 19, 2022, the upcoming launch of FTX Stocks. The latter will offer regulated US stock trading and exchange-traded funds.
FTX Stocks has the particularity of offering its users the possibility of making deposits in USD coin (USDC) on the platform.
Goldman Sachs seems to want to develop a joint project with FTX at all costs. The bank’s CEO, David Solomon, reportedly previously met with FTX founder Sam Bankman-Fried in March 2022. They then reportedly discussed the proposals from Goldman Sachs to support the development of FTX.
A venerable financial institution is reaching out to a crypto platform! No one knows what will come out of this partnership. Join FTX Now, the leading crypto exchange platform. You will benefit from a lifetime discount on your trading fees (affiliate link, see conditions on official website).