Goldman Sachs Makes History With First-Ever OTC Crypto TradeThe trade was made with crypto merchant bank Galaxy Digital.
ByEmily Rella•
Crypto certainly doesn't seem to be going anywhere — in fact, it looks like using digital currency might become even more mainstream than originally anticipated.
From U.S. president Joe Biden signing the first-of-its-kindexecutive orderfor federal agencies to begin exploring regulatory practices for crypto (including the potential creation of a coin), to Ukrainian president Volodymyr Zelenskysigning a billlegalizing the crypto industry in his country amid conflict with Russia and an uptick in crypto donations, government agencies and big banks are looking towards the future with digital currency in the forefront.
Goldman Sachs seems to be ahead of the curve, making history this week by becoming the first major U.S. bank to complete an over-the-counter crypto trade.
Related:Ukraine Legalizes Cryptocurrency Industry
The trade used a non-deliverable Bitcoin-related instrument (one that is linked to Bitcoin's price and pays out in cash) between Goldman and crypto merchant bank Galaxy Digital.
That Goldman, a top player in global markets for traditional assets, is involved is a signal of the increased maturity of the asset class for institutional players such as hedge funds, according to Galaxy co-president Damien Vanderwilt.
“这种贸易代表银行h的第一步ave taken to offer direct, customizable exposures to the crypto market on behalf of their clients," Vanderwilt said,according toCNBC. "They're implying their trust in crypto's maturity to date."
Galaxy Digital wasfounded byformer Goldman Sachs partner Michael Novogratz.
"We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy," said Max Minton, head of digital assets for Goldman Asia Pacific. "This is an important development in our digital assets capabilities and for the broader evolution of the asset class."
Bitcoinwas downjust shy of 1% in a 24-hour period as of late Monday afternoon and down just shy of 29% year over year at the same time.
