Goldman Sachs, a multinational financial institution and bank that provides services worldwide, announced Monday it had conducted an OTC crypto transaction with Galaxy Digital. Following the OTC settlement, the head of digital assets for Goldman Sachs’ Asia Pacific unit, Max Minton, said the firm was pleased to have executed the bank’s “first cash-settled cryptocurrency options trade with Galaxy.”
Wall Street Giant Goldman Sachs Performs Crypto OTC Transfer with Galaxy Digital
According to a number of reports and a release, Wall Street giant Goldman Sachs has concluded an OTC crypto trade with Galaxy Digital. Galaxy Digital was founded in January 2018, by Mike Novogratz. Both firms are calling the transfer “a first-of-its-kind transaction by a major U.S. bank.”
In essence, Goldman Sachs Group Inc. conducted the first OTC crypto transaction using a bitcoin nondeliverable option. Galaxy Digital and Goldman Sachs further confirmed in their announcement that the two companies had been working together for years. Galaxy notes that the OTC settlement is a “continuation of the bank’s partnership with Galaxy Digital to deepen its crypto capabilities.”
Over the years, Goldman Sachs had a fascinating relationship with blockchain and cryptocurrency technology. Lloyd Blankfein (ex-CEO of Goldman Sachs) stated that his views on cryptocurrency are changing in January. Not too long after Blankfein’s commentary, Goldman Sachs’ analysts warned that bitcoin (BTC) was susceptible to the Federal Reserve’s interest rate hikes.
Galaxy Digital’s Head of Global Markets Believes ‘Transaction Will Open the Door for Other Banks’
Max Minton, a Goldman executive who oversees the OTC cryptocurrency settlement with Galaxy says that the execution of the transaction was a significant milestone. Minton stated in a statement:
This significant development is important for digital asset management and the evolution of our asset class.
Galaxy was mentioned in the announcement as having helped Goldman Sachs to facilitate their first CME Group Inc. Bitcoin Futures transactions last year. Galaxy’s founder, Mike Novogratz, is a firm believer in the crypto economy, and in an interview published on Tuesday, he said: “bitcoin is a lifeline to people in countries with really poor stewardship of the economy.” Damien Vanderwilt, co-president and head of global markets at Galaxy Digital, thinks the transaction with Goldman Sachs will open new doors.
“[We] expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets,” Vanderwilt said in a statement. “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.”
Do you have any thoughts about Galaxy Digital and Goldman Sachs performing an OTC crypto trade trading a Bitcoin NDO? We’d love to hear your opinions on the subject below.
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