Goldman Sachs makes first crypto OTC trade

Goldman’s over-the-counter crypto transaction was facilitated by Michael Novogratz’s Galaxy Digital Holdings.

Goldman Sachs is said to have completed its first over-the-counter crypto derivatives trade, the first major US bank to dive into the growing crypto options market.

The development came to light on Monday and saw the bank make the maiden OTC crypto trade featuring a type of BTC derivative that settles in cash.

According to a report by CNBC, Goldman teamed up with Galaxy Digital to successfully execute the non-deliverable Bitcoin option. 

Crypto has matured as an asset class

This is not the first time Goldman Sachs, which already allows its clients access to non-deliverable forwards and exchange-traded options. 

However, the OTC trade is the ‘first big move’ to highlight the increased interest in crypto investment products from institutional investors. It also comes as traditional finance continues to show a flip in sentiment towards digital assets.

Goldman’s Max Minton, the bank’s head of digital assets for Asia Pacific, said in a statement that the trade is an indicator that crypto as an asset class is mature. And he noted that the OTC trade marks an important milestone for the bank’s overall plans around digital assets, which he revealed to revolve around the crypto options market.

Galaxy co-President Damien Vanderwilt noted that Goldman’s Bitcoin crypto OTC trade marks the first step in major bank’s involvement, with clients set to benefit from more “direct, customisable exposures to the crypto market.”

Bitcoin and other crypto-assets continue to see greater interest after initial apathy from mainstream investors, including legacy financial institutions. 

Today, several major banks, hedge funds, endowments, family offices and sovereign wealth funds have crypto as a slice of their portfolios.