On Monday, the multinational investment bank and financial services company Goldman Sachs disclosed it has conducted an over-the-counter (OTC) crypto transaction with the digital currency firm Galaxy Digital. Following the OTC settlement, the head of digital assets for Goldman Sachs’ Asia Pacific unit, Max Minton, said the firm was pleased to have executed the bank’s “first cash-settled cryptocurrency options trade with Galaxy.”
Wall Street Giant Goldman Sachs Conducts Crypto OTC Transfer With Galaxy Digital
According to a few reports and a press release, the Wall Street giant Goldman Sachs (NYSE: GS) has completed an over-the-counter (OTC) cryptocurrency trade with Galaxy Digital, a crypto firm founded by Mike Novogratz in January 2018. Both firms are calling the transfer “a first-of-its-kind transaction by a major U.S. bank.”
Essentially, the bank Goldman Sachs Group Inc. executed the first OTC crypto transaction in the form of a bitcoin non-deliverable option (NDO). Goldman Sachs and Galaxy have further detailed in the announcement that both companies have had an ongoing partnership. Galaxy notes that the OTC settlement is a “continuation of the bank’s partnership with Galaxy Digital to deepen its crypto capabilities.”
Goldman Sachs has had an interesting relationship with cryptocurrencies and blockchain technology over the years. In January, former Goldman Sachs CEO Lloyd Blankfein said that his perspective on cryptocurrency is evolving. Not too long after Blankfein’s commentary, Goldman Sachs’ analysts warned that bitcoin (BTC) was susceptible to the Federal Reserve’s interest rate hikes.
Galaxy Digital’s Head of Global Markets Believes ‘Transaction Will Open the Door for Other Banks’
As far as the OTC crypto settlement operation with Galaxy, Goldman executive Max Minton says the executed transaction is a milestone. In a press statement Minton said:
