Goldman Sachs has become the first major U.S. bank to make an over-the-counter (OTC) cryptocurrency transaction. The bank traded a bitcoin-linked instrument called a non-deliverable option with crypto merchant bank Galaxy Digital. Here, the non-deliverable option means Goldman Sachs bought a contract that bet on the future price of Bitcoin rather than purchasing the digital asset itself.
Galaxy Digital, an investment firm specializing in cryptocurrencies, has partnered with Goldman Sachs as a liquidity provider for the investment bank’s Bitcoin futures trading desk.
“This trade represents the first step that banks have taken to offer direct, customizable exposures to the crypto market on behalf of their clients,” said Galaxy co-President Damien Vanderwilt.
Following years of skepticism, it is interesting to see how Goldman Sachs makes back-to-back announcements about crypto. A move such as this could be considered an important milestone in the advancement of cryptocurrency markets.