Goldman Sachs Makes History With First-Ever OTC Crypto Trade The trade was made with crypto merchant bank Galaxy Digital.

By Emily Rella Edited by Jessica Thomas Mar 21, 2022

Crypto certainly doesn't seem to be going anywhere — in fact, it looks like using digital currency might become even more mainstream than originally anticipated.

From U.S. president Joe Biden signing the first-of-its-kind executive order for federal agencies to begin exploring regulatory practices for crypto (including the potential creation of a coin), to Ukrainian president Volodymyr Zelensky signing a bill legalizing the crypto industry in his country amid conflict with Russia and an uptick in crypto donations, government agencies and big banks are looking towards the future with digital currency in the forefront.

Goldman Sachs seems to be ahead of the curve, making history this week by becoming the first major U.S. bank to complete an over-the-counter crypto trade.

The trade used a non-deliverable Bitcoin-related instrument (one that is linked to Bitcoin's price and pays out in cash) between Goldman and crypto merchant bank Galaxy Digital.

That Goldman, a top player in global markets for traditional assets, is involved is a signal of the increased maturity of the asset class for institutional players such as hedge funds, according to Galaxy co-president Damien Vanderwilt.

"This trade represents the first step that banks have taken to offer direct, customizable exposures to the crypto market on behalf of their clients," Vanderwilt said, according to CNBC. "They're implying their trust in crypto's maturity to date."

Galaxy Digital was founded by former Goldman Sachs partner Michael Novogratz.

"We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy," said Max Minton, head of digital assets for Goldman Asia Pacific. "This is an important development in our digital assets capabilities and for the broader evolution of the asset class."

Bitcoin was down just shy of 1% in a 24-hour period as of late Monday afternoon and down just shy of 29% year over year at the same time.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Most Popular

See all

Fundraising

Getting Funding as a Minority-Owned Business Shouldn't Be a Far-Fetched Dream. Here's How This CEO is Making Public Capital More Available to All.

Historically, minority-owned businesses have faced barriers that limit their access to public capital and other necessary financial resources essential for scaling operations, innovating products, and expanding into new markets. It shouldn't be this way — raising public capital should be accessible for all, not just a privileged few.

By Joe Cecala

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

By Amanda Breen

Health & Wellness

90% of Execs Say Providing Employee Health Benefits Will Be Unsustainable By 2030 — Here's One Solution Businesses Need to Consider

Healthcare navigation is something that employers and employees can't afford to go without. Here's why.

By Michael Waterbury

Leadership

Why You Have to Let People Fail Now So They Can Succeed Later

Letting people fail helps them think critically and make their own decisions.

By Darian Shimy

Leadership

Overnight Success as a Startup Is Unrealistic — Embrace the Uncertainty and Try This Instead.

The startup norm of "move fast and break things" is short-sighted. Here is why being patient will serve your business in the long run.

By Aytekin Tank

Travel

Reduce Business and Personal Airfare Costs by Saving Big with Matt's Flights

This week only, you can get a lifetime subscription for just $80.

By Entrepreneur Store