Goldman Sachs marks first OTC crypto transaction with Galaxy Digital

21 Mar 2022

Image: © Ascannio/Stock.adobe.com

Galaxy Digital said this ‘first-of-its-kind’ transaction demonstrates the continued maturation and adoption of digital assets by banking institutions.

Wall Street bank Goldman Sachs has completed its first over-the-counter (OTC) cryptocurrency trade with digital financial service company Galaxy Digital.

Galaxy Digital said today (21 March) that this is the first OTC crypto transaction by a major bank in the US, which demonstrates the continued adoption of digital assets by banking institutions.

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“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,” Galaxy Digital co-president and head of global markets Damien Vanderwilt said.

“Goldman’s continuing trust in us is a testament to Galaxy’s expertise and ability to meet the evolving demands by institutions as crypto solidifies itself as the fifth asset class,” Vanderwilt added.

The OTC transaction was a bitcoin non-deliverable option, which Galaxy said was facilitated and executed by its trading unit. The financial services firm said that it works with more 690 institutional trading counterparties, while its trading platform provides liquidity in more than 100 digital assets.

“We are pleased to have executed our first cash-settled crypto currency options trade with Galaxy,” Goldman Sachs’ Asia Pacific head of digital assets Max Minton said. “This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”

In March 2021, CoinDesk reported that Goldman Sachs relaunched its cryptocurrency trading desk after a three-year hiatus. Last September, Goldman Sachs furthered its investment into blockchain infrastructure platform Blockdaemon, as the unicorn closed a $155m Series B funding round.

Outside of the US, cryptocurrencies such as bitcoin had a narrow escape in the European Parliament last week, as MEPs voted to scrap a provision that would have banned, in effect, proof-of-work crypto assets on sustainability grounds.

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Leigh Mc Gowran is a journalist with Silicon Republic

editorial@siliconrepublic.com