- After months of anticipation, Goldman Sachs finally launches the Bitcoin derivatives trading desk.
- Citibank considers launching crypto services to meet the increasing demand from its clientele.
- Arte Surfside, a Miami-based luxury apartment, begins accepting crypto payments for its multi-million dollar apartments.
- A Mastercard survey reveals 40% of users will use cryptocurrencies for payments next year.
- Dacxi Vision Tour, this year's biggest multi-city crypto event so far, Completes successfully with over 800 people in attendance.
The highly anticipated launch of Goldman Sachs' Bitcoin derivatives trading was the highlight of the previous week. Now with Citibank on the fray to launch crypto services to meet high demand from its clientele, the past week turned out to be an exciting one for crypto enthusiasts. It proves that the crypto space is acting as a magnet for institutional investors and large financial institutions.
Businesses, too, are joining the crypto bandwagon in droves and are specifically targeting the crypto affluent segment by accepting crypto payment for their services and products. Recently, Sapir Corp's Arte Surfside has announced accepting cryptocurrencies as payments for its luxury apartments to target the crypto millionaires and billionaires. With this announcement, Arte Surfside became Miami’s first residential project to accept crypto payments.
People are also starting to realize the benefits of using cryptocurrencies for payments as 40% of users said in a Mastercard Survey that they will be using cryptocurrencies for payments from next year. Another notable news from the crypto industry was about Dacxi completing a multi-day Dacxi Vision tour in Australia, the biggest crypto event this year, amid covid restrictions worldwide.
Goldman Sachs Joins Bitcoin Bandwagon, Launches BTC Derivatives Trading Desk
Goldman Sachs, one of the largest investment banks globally, has finally made a move into the crypto market after months of speculation among crypto enthusiasts. They are launching a Bitcoin derivatives trading desk, headed by Mathew McDermott, Digital Assets Head under the Global Currencies and Emerging Markets division.
The news about Goldman Sachs launching Bitcoin derivatives trading became public after a recent Goldman Sachs internal memo was revealed in a CNBC report. Ramesh Venkataramani, a Goldman Partner, wrote the memo and pointed out that the Goldman Sachs Bitcoin derivatives trading desk will only be trading in CME BTC future trades and NDFs, which are cash-settled financial instruments. It essentially means that Goldman will have limited exposure to BTC as both CME BTC futures and NDFs are bought and settled in cash.
Considering the reputation that Goldman Sachs has in the global financial industry, their entry into the crypto market was among the widely anticipated events by crypto enthusiasts globally. But the investment banking giant has made it clear that they will only be trading Bitcoin derivatives and won't be holding Bitcoin on their books. Regardless of it, the launch of Bitcoin derivatives trading by Goldman Sachs is a significant moment for the crypto world. It signals that the large traditional financial institutions are finally warming up to cryptocurrencies.
Citibank, Another Multinational Banking Giant, Considers Offering Crypto Services
Due to high demand from its customers, specifically asset managers, and hedge funds, Citibank is considering offering crypto-related services. It all began in August 2020, when Bitcoin prices shot up to $12000 from $9000, marking an astounding 33% growth, all in one month, says Italy Tuchman, global head of foreign exchange of Citibank. The discussions are still ongoing about offering crypto trading, financing, and custody services to Citibank clients.
The only thing worrying the financial services company is running afoul of the financial regulators by launching crypto services haphazardly. While talking about Citibank considering to offer crypto services to its clientele, Tuchman said to Financial Times:
“We shouldn’t do anything that’s not safe and sound. We will jump in when we are confident that we can build something that benefits clients and that regulators can support.”
Expanding further, Tuchman said that the bank won't become a victim of fear of missing or FOMO to the lure of Bitcoin and the crypto market. They will only make a move once they feel that the right time has come. After all, the crypto market isn't a space race, and there is enough space for more than one player.
Miami's Arte Surfside luxury apartment Block Starts Accepting Cryptocurrencies
Aiming to attract the crypto millionaires and billionaires, Arte Surfside, the luxury apartments block, has started accepting crypto payments for its luxury apartments. Already home to the elites such as Ivanka Trump and Jared Kushner, and Arielle Charnas, a well-known fashion blogger, Arte Surfside is now gearing up to attract the who's who of the crypto world with this decision.
To accept crypto payments, ARTE Surfside has partnered with SolidBlock, a company offering a property-backed securities trading platform. Recently many venture capital firms and Silicon Valley companies have moved to Miami, which further compelled Sapir Corp, the developer of Arte Surfside, to accept payment in cryptocurrency. Considering that their cheapest apartment begins at $10.3 million, the announcement about accepting crypto payments might prove to be a trump card.
What's even more interesting is that Miami is going all out to become a crypto-friendly city. It was one of the first cities to consider paying the workers of the City of Miami in BTC. With more & more companies accepting crypto payments in Miami, the dream of Francis Suarez, Miami's Mayor, to turn Miami into a hub of cryptocurrencies and technology is becoming a reality.
Lauding Arte Surfside on becoming the first residential developer in Miami to accept cryptocurrency payments, Mayor Suarez said:
“The embrace of cryptocurrency and emerging technologies across all sectors of industry is precisely how Miami will become the city of the century. Arte is setting an important precedent, and I won't be surprised to hear similar stories in the near future.”
A Mastercard Survey Reveals That 40% of Crypto Users Intend to Use Crypto for Payments Next Year
In a survey by Mastercard, a payments industry behemoth, 40% of respondents disclosed that they will use cryptocurrencies for payments next year. The survey was published on May 4 under the title of "Consumer Appetite for Digital Payments Takes Off" and consisted of 15,500 respondents. The respondents were from North America, Latin America, the Middle East, Africa, and the Asia Pacific, and the 40% figure was spread across all age categories and regions.
The survey revealed that Millennials are more likely to use cryptocurrencies with over two-third of them considering using cryptocurrencies this year. They are also far more likely to be interested in learning more about cryptocurrencies, with 77% of them nodding when asked if they want to learn about cryptocurrencies. 75% of Millennials also said that they are open to using cryptocurrencies once they have a better understanding of cryptocurrencies.
Dacxi Successfully Completes Dacxi Vision Tour Encompassing 6 Cities With over 800 People in Attendance
Covid has wreaked havoc worldwide, with many events being canceled or being scaled down. Among all these, Dacxi has set an example by completing the Dacxi Vision tour in Australia. Considering the Covid restrictions globally, the Dacxi Vision tour was one of the biggest series of crypto meetings this year, held across 6 cities with over 800 people in attendance. The Dacxi Vision tour consisted of live events over a 9-day period, which began with a live event in Cairns, Australia, followed by Brisbane, Gold Coast, Sydney, Adelaide, and the last in Perth.