Home News Goldman Sachs completes first OTC crypto options trade with Galaxy

Goldman Sachs completes first OTC crypto options trade with Galaxy


The first-ever over-the-counter (OTC) crypto options trade was executed by Goldman Sachs, a leading American investment bank.

In fact, in conjunction with Michael Novogratz’s bitcoin investment management firm Galaxy Digital, Goldman Sachs completed its first over-the-counter cryptocurrency transaction.

The OTC transaction was in the form of a Bitcoin non-deliverable option, according to a joint announcement released on Monday. And it was one of the first OTC crypto transactions by a major bank in the United States.

“We’re thrilled to have completed our first cash-settled bitcoin options trade with Galaxy,” said Max Minton, Goldman Sachs’ Asia Pacific head of digital assets. Additionally, he described the breakthrough as a “watershed moment” for Goldman Sachs’ digital asset capabilities. As well as the “broader expansion of the asset class.”

Goldman Sachs’ latest engagement with Galaxy Digital is part of the bank’s ongoing effort to develop its crypto capabilities.

The deal will open the door for additional banks to consider OTC

Galaxy helped CME Group launch Goldman Sachs’ Bitcoin futures trading product in June 2021, as previously reported. Goldman Sachs also provides exposure to the Ether cryptocurrency (ETH). Through Galaxy Digital’s Ethereum Fund, according to data from the US Securities and Exchange Commission.

“We are content to strengthen our connection with Goldman,” Galaxy Digital co-president Damien Vanderwilt said. “We expect the deal to open the door for additional banks to consider OTC as a conduit for trading digital assets.”

Goldman Sachs is one of the largest traditional financial organisations in the United States to invest in cryptocurrencies. The banking behemoth recognised for its support of Circle. A blockchain technology company that runs the USD Coin (USDC), the second-largest stablecoin by market capitalization. Last year, Goldman Sachs made history by becoming the first financial institution to offer trading services for Bitcoin and Ethereum derivatives.

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