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Goldman Sachs Conducts First Over-the-Counter Crypto Trade With Galaxy

Michael Novogratz's Galaxy says it's building on the relationship with Goldman as more Wall Street clients seek to push into cryptocurrency trading.

Updated May 11, 2023, 4:35 p.m. Published Mar 21, 2022, 12:34 p.m.

A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010. Goldman Sachs Group Inc. racked up trading profits for itself every day last quarter. Clients who followed the firm's investment advice fared far worse. Photographer: Daniel Acker/Bloomberg via Getty Images

Goldman Sachs, the Wall Street heavyweight, completed an over-the-counter (OTC) cryptocurrency-related trade with the digital-asset financial company Galaxy Digital, in a transaction that the firms are characterizing as a first.

New York-based Galaxy disclosed the trade in a press release on Monday. The transaction was described in the statement as a bitcoin (BTC) non-deliverable option, a type of cash-settled cryptocurrency options trade.
"This marks the first OTC crypto transaction by a major bank in the U.S. as Goldman Sachs continues expanding its cryptocurrency offerings, demonstrating the continued maturation and adoption of digital assets by banking institutions," Galaxy said.
The deal represents the continuation of Galaxy's relationship with Goldman Sachs, according to the statement.
In March of last year, CoinDesk reported that Goldman Sachs reopened its crypto trading desk after a three-year hiatus, under growing demand from institutional clients.
Last June, Galaxy announced that it would serve as Goldman's liquidity provider for bitcoin futures block trades on the CME exchange.
Earlier this month, CoinDesk reported that Goldman was offering interested clients access to an ether (ETH) fund issued by Galaxy. Galaxy founder and CEO Michael Novogratz worked at Goldman for 11 years, according to a bio on his company's website.

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Bradley Keoun

Bradley Keoun is CoinDesk's managing editor of tech & protocols, where he oversees a team of reporters covering blockchain technology, and previously ran the global crypto markets team. A two-time Loeb Awards finalist, he previously was chief global finance and economic correspondent for TheStreet and before that worked as an editor and reporter for Bloomberg News in New York and Mexico City, reporting on Wall Street, emerging markets and the energy industry. He started out as a police-beat reporter for the Gainesville Sun in Florida and later worked as a general-assignment reporter for the Chicago Tribune. Originally from Fort Wayne, Indiana, he double-majored in electrical engineering and classical studies as an undergraduate at Duke University and later obtained a master's in journalism from the University of Florida. He is currently based in Austin, Texas, and in his spare time plays guitar, sings in a choir and hikes in the Texas Hill Country. He owns less than $1,000 each of several cryptocurrencies.