Goldman Sachs has become the first major US bank to trade over-the-counter (OTC) cryptocurrencies, according to an announcement announced today. The Wall Street giant has purchased an OTC Bitcoin non-deliverable option (NDO) from Galaxy Digital.
OTC Bitcoin NDO sounds complicated, but it basically means that Goldman Sachs bought a contract to bet on the future price of Bitcoin rather than actually buying the digital asset itself.
Galaxy Digital is a New York-based cryptocurrency investment company operated by Mike Novogratz of Billionaire. We are partnering with Goldman Sachs as a liquidity provider for the Bitcoin futures trading desk of an investment bank launched last year.
In a statement, Maxminton, Head of Digital Assets for Goldman Sachs’ Asia Pacific region, said: A broader evolution of the asset class. “
Damien Vanderwilt, Co-President and Head of Global Markets at Galaxy Digital, said: “”
Goldman Sachs’ interest in the world of cryptocurrencies has changed over the years. In 2018, it announced plans for a crypto trading desk, but then shelved the idea. Last year, I opened my desk.
Options trading is a very popular form of investing in cryptocurrencies. Instead of buying and selling digital assets, traders buy and sell contracts that bet on the price of the asset.
This is a huge market. In the last 24 hours, $ 16.5 billion has been traded on the spot market on Binance, the world’s largest cryptocurrency exchange. In addition, the 24-hour trading volume of the futures market was $ 44 billion.
Send the best decryption directly to your inbox.
Deliver daily top stories, weekly summaries, and deep dives directly to your inbox.