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Goldman Sachs Makes Its First Over-the-Counter Crypto Transaction, Here's What It Means

Mon, 03/21/2022 - 14:01
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Arman Shirinyan
One of the largest financial institutions in the world is discovering new ways to receive exposure to the cryptocurrency market
Goldman Sachs Makes Its First Over-the-Counter Crypto Transaction, Here's What It Means
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According to the CNBC article, Goldman Sachs has made its first OTC cryptocurrency transaction. One of the largest banks in the country has traded Bitcoin-linked non-deliverable options with Galaxy Digital.

A transaction is considered as an enormous step toward further adoption of cryptocurrencies as a type of asset by large institutions like Goldman.

The company has already been trading crypto-related assets like exchange-based CME Group Bitcoin products, but in this case, it acted as a principal in the transaction. According to Galaxy Digital co-president Damien Vanderwilt, the OTC trade represents the first step that the bank took to offer customizable exposure to the crypto market.

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The choice of trading options rather than other products was justified, with systematic relevance of the product to the cryptocurrency market in comparison to cleared futures or any other exchange-based products.

Following a massive bullrun in 2021, when Bitcoin gained over 150% to its value at some point, institutions began seeking ways to gain exposure to the cryptocurrency or Bitcoin-related exchange-based products.

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Goldman representatives have also shared their excitement in working with cash-settled cryptocurrency options. The company's head of digital assets in Asia Pacific believes that it is an important development in Goldman's digital assets capabilities and the evolution of the asset class.

As the global head of crypto at Goldman, Andrei Kazantsev, noted back in December, their next big step would be the development of options markets.

Despite the major correction of Bitcoin and the cryptocurrency market in general, institutions have not left or abandoned the market completely and are still accumulating more funds on their balance sheets.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.