In response to growing interest in the market, Goldman Sachs is planning to launch over-the-counter Ether options trading for its UAE clients as it heads towards a POS model, a practice which involves large transactions for even higher yields.

Ether, the second-largest digital currency after Bitcoin, has surged in price to more than 32% and outperformed Bitcoin since March 15, when it passed the last major test before a long-anticipated software update called “The Merge”. 

George Lewin-Smith, an associate on the bank’s digital-assets team, sees Ether as “more of an investable asset class.” This large-scale technical upgrade means that Merge can reduce the blockchain’s carbon footprint and improve its efficiency. The low energy and computational requirements for Ether staking could make the token more accessible for trading.

The prospect of high returns on staking could also attract debt investors, who are used to this level of risk in their day-to-day operations. Staking, which involves locking in the token for a set period of time, would also make the token similar to a bond.

Although Goldman Sachs still doesn’t offer spot crypto trading, it provides access to European and Canadian exchange-traded products that can be used as a proxy, according to Kazantsev, Al Hilal Bank’s global head of crypto trading. He added that the bank is planning to launch the product “in due course.”