Goldman Sachs, one of the world’s largest banks, has made its first Bitcoin trade in the OTC (over-the-counter) market
Goldman Sachs OTC Crypto Trade
Goldman Sachs, one of the world’s top banks, has entered the OTC (over-the-counter) Bitcoin market for the first time. The Wall Street behemoth purchased an NDO (non-deliverable option) from Galaxy Digital, a startup dealing in digital asset finance services. The international investment bank is the first big bank in the United States to enter the over-the-counter (OTC) market for cryptocurrencies. It marks a watershed moment in the history of cryptocurrencies and traditional banking.
Galaxy has been Goldman’s liquidity source for cryptocurrencies in the spot market, futures market, and digital asset exchanges, as well as for transactions with fiat financial institutions. In June 2021, Goldman commissioned Galaxy to establish the CME Group’s Bitcoin futures trading product. Additionally, Goldman began providing its investors with exposure to the digital currency Ethereum (ETH) via Galaxy’s Ethereum Fund. Previously, in May 2021, Goldman established a Bitcoin trading desk and began issuing Bitcoin non-deliverable futures with a price linked to Bitcoin.
Galaxy Digital’s trading platform facilitates the purchase and sale of over 100 digital assets. The business now has partnerships with over 700 institutional trading counterparties. As well as gained 43 new ones in the third quarter of last year.
Hedge funds have sought derivative exposure to Bitcoin, the businesses claimed. Either to speculate on its price without actually holding it or to hedge current exposure. These instruments are mostly dominated by crypto-native enterprises like as Galaxy, Genesis, and GSR Markets.
Quotes
Max Minton, Asia Pacific head of digital assets for Goldman Sachs, said in a statement: “We are pleased to have executed our first cash-settled crypto currency options trade with Galaxy. This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”
Damien Vanderwilt, co-president and head of global markets at Galaxy Digital, added: “We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets.”
