Derivative Path taps Goldman Sachs to offer spot FX and cross border payments

Rick Steves

Derivative Path has partnered with Goldman Sachs Transaction Banking (TxB) to offer an automated, digital-first payments platform to help financial institutions with spot foreign exchange and international payments.

The derivatives execution services will leverage TxB’s API-based platform so that its clients, regional and community banks, are able to provide a more cohesive end-to-end global payment solution to their underlying customers.

Derivative Path offers a cloud-based solution for cross-border payments that reduces barriers to entry for regional and community banks to access FX payments.

The SaaS-based capital markets platform, DerivativeEDGE, covers front, middle, and back-office functionality and automates regulatory compliance, integrates real-time market data, automates swap data reporting, and affirms cleared trades.

Derivative Path caters to regional and community banks in the US

Pradeep Bhatia, CEO & Co-Founder of Derivative Path, said: “Teaming up with one of the world’s largest and most-established financial institutions is a major step in the right direction of bringing greater technology sophistication and flexibility to the regional and community banking sector in the US. The launch of our joint solution with Goldman Sachs substantiates our mission of delivering a new wave of innovation to these firms.”

Art Brieske, Global Head of Payments for Goldman Sachs Transaction Banking, commented: “Regional and community banks now have access to the same global payments capabilities as large money center banks. We are pleased to collaborate with Derivative Path to provide access to our global payments capabilities through their platform and provide regional and community banks with a comprehensive yet simplified and efficient cross-border payment solution.”

Goldman Sachs grows interest in digital assets

It is no secret that Goldman Sachs has taken an interest in crypto by investing in digital asset startups (Elwood, for example) and offering crypto derivatives products.

Goldman Sachs is now looking at the crypto bearish market, also known as “crypto winter”, as an opportunity to buy bargains. The investment bank is reportedly looking to secure $2 billion in funding to buy up distressed assets of DeFi platform Celsius at a big discount.

Goldman Sachs would only act as a broker and doesn’t intend to invest or manage Celsius’ acquired assets. Instead, investors involved in the fundraising process would be responsible for managing roughly $8 billion loaned out to Celsius clients and $12 billion in assets under management.

Goldman Sachs was in the crypto news earlier this month when it offered its first ever derivatives product linked to ether (ETH), in a significant step for a major bank that accelerates Wall Street’s embrace of cryptocurrencies. The move comes nearly 16 months after the investment bank traded its first over-the-counter Bitcoin options.

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