Galaxy Digital previously assisted CME Group’s June 2021 launch of Goldman Sachs’ Bitcoin futures trading product.
Goldman Sachs, the American investment firm, has expanded its experience in cryptocurrency trading by completing its first-ever over-the-counter (OTC) crypto options deal.
Goldman Sachs completed its first over-the-counter bitcoin transaction in partnership with Galaxy Digital, Michael Novogratz’s cryptocurrency investment management business.
According to a joint release on Monday, the OTC transaction took the form of a non-deliverable Bitcoin (BTC) option, making it one of the first OTC crypto transactions by a major US bank.
“We are happy to have completed our first cash-settled cryptocurrency options transaction with Galaxy,” said Max Minton, Goldman Sachs’ Asia Pacific head of digital assets. He emphasised that the breakthrough is significant for Goldman Sachs’ expertise in digital assets as well as for the “broader expansion of the asset class.”
Goldman Sachs’ recent engagement with Galaxy Digital is also a continuation of the bank’s relationship with Galaxy to strengthen its crypto capabilities.
Galaxy enabled the launch of Goldman Sachs’ Bitcoin futures trading product for CME Group in June 2021, as previously announced. Goldman Sachs also gives its customers exposure to the Ether cryptocurrency (ETH) through Galaxy Digital’s Ethereum Fund, according to Securities and Exchange Commission statistics.
“We are thrilled to deepen our connection with Goldman and anticipate that this transaction will encourage other banks to explore OTC as a channel for trading digital assets,” Galaxy Digital co-president Damien Vanderwilt said.
Goldman Sachs is one of the largest conventional financial companies in the United States that has entered the cryptocurrency space. The financial behemoth is most known for its investment in Circle, the blockchain technology company that operates the USD Coin (USDC), the second-largest stablecoin by market value. Goldman Sachs made a historic entry into the cryptocurrency market last year, providing its first trading services for Bitcoin and Ether futures.