- By providing deep liquidity, Galaxy digital has helped institutional investors access the crypto market.
- The transaction involved a Bitcoin non-deliverable option (NDO).
Galaxy Digital, an investment management company focused on the digital asset market, has facilitated the first OTC crypto transaction by a major bank in the United States. The bank involved is Goldman Sachs Group and the transaction involved a Bitcoin non-deliverable option (NDO).
Both Goldman Sachs and Galaxy Digital have set an example that other institutional and whale investors are expected to follow suit.
“We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets,” said Damien Vanderwilt, Co-President, and Head of Global Markets at Galaxy Digital.
Goldman’s continuing trust in us is a testament to Galaxy’s expertise and ability to meet the evolving demands by institutions as crypto solidifies itself as the fifth asset class.
As for Goldman Sachs, it has shown the ground interest of digital assets, more so by institutional investors is rising by the day. Institutional investors have significantly invested in the digital asset industry, particularly DeFi, and NFTs.
“We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy,” said Max Minton, Asia Pacific head of digital assets for Goldman Sachs.
This is an important development in our digital assets capabilities and for the broader evolution of the asset class.
Galaxy Digital and the crypto market
By providing deep liquidity, Galaxy digital has helped institutional investors access the crypto market. Notably, Galaxy Digital provides liquidity for over 100 digital assets. In its portfolio, the company takes pride in over 690 institutional trading counterparties. Out of which 43 new relationships were inked in the third quarter of last year.
Earlier last week, the company announced that Mike Novogratz, Founder, and CEO, will participate in the Barclays Crypto & Blockchain Summit. The event is scheduled to take place on Wednesday, March 30, 2022, at 1:00 p.m. ET. Reportedly, Novogratz is expected to speak on the latest trends emerging within, and shaping the maturation of, the digital assets sector.
Institutional investors have been encouraged to venture into the crypto market by friendly government policies. For instance, the latest crypto executive orders issued by United States President Biden encourage tech innovation. Crypto assets and blockchain technology are expected to take center stage in the next decade.
The crypto market has grown to a trillion-dollar market with the fiat decade of existence. The accomplishment is major compared to other markets that are decades old and not anywhere near that.
Nevertheless, the crypto market is still costly and risky to access for most users. Moreover, the crypto market enjoyed support from approximately 100 million people in the world as of 2020.
Elsewhere, the crypto market cap has totaled $2 trillion following yesterday’s and weekend’s rallies. Bitcoin price is up approximately 3 percent in the past 24 hours and exchanged hands around $42K.
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