Marex Group, the diversified global financial services platform, announced the execution of the first over-the-counter (OTC) non-deliverable forward (NDF) crypto trade on ether (ETH) by Goldman Sachs, with Marex acting as counterparty.
As a non-deliverable forward (NDF), the trade is purchased in cash, and on settlement, the option-holder is given the cash value rather than receiving ether. This allows the holder to have the exposure without having to hold the digital currency. This OTC trade is executed directly between the counterparties without using a centralized exchange.
The trade was organized by Marex’s hedging and investment solutions arm, Marex Solutions. In 2021, Marex Solutions added crypto as a new asset class, with exposures tailored according to investor preferences. This OTC NDF is a straightforward way to gain exposure to crypto without exchanging or having to hold the actual coin.
Nilesh Jethwa, CEO at Marex Solutions, said in a statement: “We are now offering institutional clients several ground-breaking customized OTC and Structured Note crypto products. This leverages off our existing capabilities to manufacture customized derivatives. The trade with Goldman Sachs highlights the gap we can bridge between traditional finance and the digital asset community.”
Harry Benchimol, co-Head of Derivatives Engine at Marex Solutions, said in a statement: “Since January 2021, we have added crypto as a new asset class. We have built a proprietary platform that can manufacture derivatives to be traded as an OTC or as a security. Goldman Sachs is one of our main counterparties, particularly on Equities and FX, and we are delighted to be working closely with them on their crypto exposure offering.”