Goldman Sachs has conducted its first-ever over-the-counter (OTC) crypto options trade with Galaxy Digital, a digital asset finance company.
On Monday, CNBC reported on the press release issued by Galaxy Digital announcing the deal.
The transaction was represented as a Bitcoin non-deliverable option, which is a type of cash-settled cryptocurrency options trade, according to the statement.
The initiative is considered as a significant step forward in the development of crypto markets.
Max Minton, Asia Pacific head of digital assets, Goldman Sachs said, “we are pleased to have executed our first cash-settled crypto currency options trade with Galaxy.”
“This is an important development in our digital assets capabilities and for the broader evolution of the asset class.”
Goldman Sachs’ recent collaboration with Galaxy Digital is also an extension of the bank’s ongoing partnership with Galaxy to develop its crypto capabilities.
Galaxy provided liquidity support for the release of Goldman Sachs’ Bitcoin futures trading product to the Chicago Mercantile Exchange (CME), a derivatives market place in June 2021.
“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,” said Damien Vanderwilt, Co-President and Head of Global Markets, Galaxy Digital.
Goldman Sachs’ Crypto Trading Timeline
CoinDesk revealed in March 2021 that Goldman Sachs relaunched its crypto trading desk after a three-year break due to increased demand from institutional clients.
In June, Galaxy announced that it would provide liquidity to Goldman Sachs for Bitcoin futures block trading on the Chicago Mercantile Exchange.
The SEC announced earlier this month that Goldman Sachs will be providing interested clients exposure to a Galaxy Ethereum fund.
