Goldman Sachs Finalizes First OTC Crypto Trade with Galaxy

Goldman Sachs, the Wall Street juggernaut, completed an over-the-counter (OTC) cryptocurrency-related trade with Galaxy Digital Holdings, an eminent global provider of blockchain and cryptocurrency financial services for institutions, according to a press release on Monday.   

The New York-based Galaxy Digital, or “the Company,” described the transaction as a bitcoin (BTC) non-deliverable option, which is a type of cash-settled cryptocurrency options trade. 

“This marks the first OTC crypto transaction by a major bank in the U.S. as Goldman Sachs continues expanding its cryptocurrency offerings, demonstrating the continued maturation and adoption of digital assets by banking institutions,” Galaxy said. 

Galaxy believes that this transaction with “the Bank” will open the door for other opportunities with more banks around the world. 

"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 at Galaxy Digital. 

An OTC transaction, in reference to crypto, is a private deal for buying and selling cryptocurrency, providing an increased line of security for buyers and sellers. 

This deal comes a year after Goldman Sachs reopened its crypto trading desk after a previous three-year hiatus. It also comes after a June, 2021 Galaxy announcement that said it would serve as Goldman’s liquidity provider for bitcoin futures block trades on the CME exchange. 

All this points to a very amicable relationship between Goldman Sachs and Galaxy, an investment management firm working with over 690 institutional trading counter-parties.

By Tyler Irvin

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