Goldman Sachs and a collaboration with Galaxy Digital
Goldman Sachs became the first major US bank to conduct an over-the-counter crypto transaction.
The investment bank executed its first over-the-counter crypto transaction in the form of a non-deliverable bitcoin option (NDO) with Galaxy Digital, demonstrating an openness to the implementation of digital assets into banking institutions. Galaxy Digital is a high-tech firm that provides services in the blockchain and cryptocurrency ecosystem for the financial institutions sector. The deal is the first for a major US bank, and is a key and significant event for the crypto derivatives market. Options are contracts that give the right to buy or sell a security at a specified price over a specified period of time. Thus, the underlying asset is not exposed to volatility risks. It is known that Goldman Sachs and Galaxy Digital have already traded with bitcoin futures contracts in 2021. Damien Vanderwilt, who is the co-president of Galaxy Digital, says that Goldman Sachs’ interest in digital assets confirms the willingness of a large bank to consider cryptocurrency as an asset class.
He also added that options trading is much more systematic and relevant than futures trading. And Galaxy Digital CEO Mike Novogratz believes that Bitcoin will become “digital gold” for the next 3,000 years, while Ethereum has an even more significant future in the world of finance. Goldman Sachs is just one of many Wall Street banks considering options for dealing with cryptocurrencies. The investment bank Goldman Sachs plans to provide its clients with access to Ethereum Funds through Galaxy Digital. Such information appeared earlier, in March. It’s also worth mentioning that former Goldman Sachs chief executive Roger Bartlett left his post in February and reportedly joined cryptocurrency exchange Coinbase.
We are pleased to continue to strengthen our relationship with Goldman Sachs and predict that this cooperation will open doors for other banks considering OTC as a digital asset trading channel, - Vanderwilt commented.