Goldman Sachs completes first OTC crypto options trade with Galaxy

Published at: March 21, 2022

The American investment bank Goldman Sachs continues expanding its cryptocurrency trading expertise by executing its first-ever over-the-counter (OTC) crypto options trade.

Goldman Sachs executed its first OTC crypto transaction in collaboration with the trading unit of Michael Novogratz’s cryptocurrency investment management firm Galaxy Digital.

According to a joint announcement on Monday, the OTC transaction was in the form of a Bitcoin (BTC) non-deliverable option (NDO), representing one of the first OTC crypto transactions by a major bank in the United States.

“We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy,” said Max Minton, Goldman Sachs’ Asia Pacific head of digital assets. He noted that the development marks an important milestone in Goldman Sachs’ digital assets capabilities as well as for the “broader evolution of the asset class.”

The latest collaboration between Goldman Sachs and Galaxy Digital also represents a continuation of the bank’s partnership with Galaxy to improve its crypto capabilities. As previously reported, Galaxy facilitated the launch of Goldman Sachs’ Bitcoin futures trading product for CME Group 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,” Galaxy Digital co-president Damien Vanderwilt said.

This article is developing and will be updated.

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