Goldman Sachs and Galaxy Digital Execute First OTC Trade with a Settled Bitcoin Option
The trading branch of Galaxy Digital has secured the first over-the-counter cryptocurrency transaction with Goldman Sachs.
According to the announcement, the operation has been carried out in the format of a deal with a settlement option on Bitcoin.
A settled or non-deliverable option is a contract that, at maturity, pays out based on the difference between the market value of the underlying asset and its predetermined price. As part of transactions with such instruments, there are no physical deliveries.
Goldman Sachs is the first US-based bank to conduct an over-the-counter crypto deal. The parties plan to make more operations involving digital assets in the future.
Galaxy Digital became last year the liquidity provider for Goldman Sachs in Bitcoin futures transactions on the Chicago Mercantile Exchange (CME).
A crypto bank spokesman has noted that compared to the CME deal, the new operation carries more risk, since Goldman Sachs acts as the principal in the transaction.
