Goldman Sachs Group Inc (NYSE:GS) announced the execution of its first over-the-counter (OTC) crypto trade through partner Galaxy Digital Holdings Ltd (OTC:BRPHF).
The development comes as the investment bank furthers its foray into crypto. It was just last year, the bank launched a cryptocurrency trading desk.
Further, the Bitcoin (CRYPTO: BTC) trade executed was a non-deliverable option that settles to cash (not crypto).
The transaction did not take place at a centralized exchange, and this opened the door to an online narrative regarding the potential for counterparty risk should one participant in the transaction not deliver on its obligation.
Also Read: Crypto-Friendly Banks Are Coming, But Do They Have Real Solutions?
Damien Vanderwilt, the co-president and head of global markets at Galaxy explained that the trade represents the first step banks have taken to offer direct but customizable exposure to clients that’s more systematically relevant to markets compared to exchange-based products.
“If you think of crypto today, part of the concern of the sector is most of the players in the sector are not players that are familiar to regulators and politicians,” Vanderwilt said.
“What helps is for regulators and government to see that firms like Goldman that they know and trust for decades are also going to be participants,” he added.
