Goldman Sachs Makes First OTC Cryptocurrency Transaction with Galaxy Digital

Goldman Sachs (NYSE:GS) has reportedly made its first over-the-counter cryptocurrency transaction on Monday, trading a bitcoin-related instrument called a "non-deliverable option" with crypto-commercial bank Galaxy Digital, meaning that Goldman Sachs has become the first major U.S. bank to trade cryptocurrencies over the counter, marking an important milestone in Goldman Sachs' further entry into the emerging digital asset derivatives market. This means that Goldman Sachs has become the first major U.S. bank to trade cryptocurrencies over the counter, and marks an important milestone in Goldman Sachs' further entry into the emerging digital asset derivatives market.

According to the companies, Goldman Sachs is taking on greater risk as a trading entity than the trading platform-based Chicago Mercantile Exchange (NASDAQ:CME) bitcoin product it began trading last year.

Damien Vanderwilt, co-president of Galaxy, said Goldman's involvement, as a top player in the global traditional asset market, demonstrates the increased sophistication of institutional investors, such as hedge funds, in this asset class. "This transaction represents the first step in the bank's efforts to provide clients with direct, customizable exposure to crypto markets," Vanderwilt said in an interview.