Wall Street giant Goldman Sachs partners with Galaxy Digital to conduct first OTC Bitcoin trading!

According to a report by the Associated Press yesterday (22nd), the U.S. investment banking giant Goldman Sachs announced that its trading division has purchased Bitcoin non-deliverable options (NDO) from the cryptocurrency financial services company Galaxy Digital through over-the-counter (OTC) trading. This move signifies a significant step for mainstream traditional financial institutions in the United States venturing into the cryptocurrency industry.

Goldman Sachs' First Cryptocurrency OTC Trade

Goldman Sachs' purchase of Bitcoin NDO from Galaxy Digital marks the first over-the-counter cryptocurrency trade by a mainstream U.S. bank, indicating an increasing acceptance of digital assets by traditional financial institutions. Last June, Goldman Sachs also began trading CME Bitcoin futures.

While the NDO purchased by Goldman Sachs may sound complex, in simple terms, it represents a contract betting on the future price of Bitcoin, not the cryptocurrency itself.

OTC (Over-the-Counter) trading, also known as off-exchange trading, refers to transactions that do not take place on formal exchanges. These trades involve direct negotiations between securities brokers and investors, with less public disclosure of trading information.

"We are pleased to have completed the first OTC trade in cash-settled cryptocurrency options with Galaxy, a significant milestone for our digital asset capabilities and broader expansion of asset classes," said Max Minton, Head of Digital Assets for Goldman Sachs in Asia Pacific.