US investment bank Goldman Sachs continues to expand its cryptocurrency trading expertise by conducting its first-ever over-the-counter (OTC) crypto options trading.
Goldman Sachs executed its first OTC crypto transaction in partnership with the trading unit of Galaxy Digital, the cryptocurrency investment management company of Michael Novogratz.
According to a joint announcement on Monday, the OTC transaction took the form of a Bitcoin (BTC) non-deliverable option (NDO), one of the first OTC crypto transactions by a major bank in the United States.
“We are delighted to have completed 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 is an important milestone in Goldman Sachs’ digital asset capabilities and for the “wider asset class evolution.”
The latest partnership between Goldman Sachs and Galaxy Digital also represents a continuation of the bank’s partnership with Galaxy to enhance 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 excited to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks that view OTC as a channel for trading digital assets,” said Damien Vanderwilt, co-president of Galaxy Digital.
This article is under development and will be updated.