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Investing.com – Goldman Sachs (NYSE:) has become the first major U.S. bank to execute an over-the-counter transaction in cryptocurrencies. Representatives of the bank said it had negotiated a non-deliverable option tied to Galaxy Digital, the cryptocurrency investment bank headed by Mike Novogratz.
Goldman Sachs has made it clear that it believes in the future of cryptocurrency technology over the past year by announcing its first bitcoin-related products and sharing deep insights into the potential of a web3 powered by I’.
Although Goldman had traded Bitcoin futures on the Chicago Mercantile Exchange in the past, it had never offered its clients direct market exposure.
“This transaction represents the first step that banks have taken to offer direct and customizable exposures to the crypto market on behalf of their clients,” said Damien Vanderwilt, co-chairman of Galaxy, in a statement on the transaction. He added that Goldman Sachs’ decision to take on additional risk underscores its “confidence in the maturity of crypto to date.”
While Goldman Sachs has been one of crypto’s biggest advocates, it’s not the only institutional player showing interest in the digital asset space. Investment banks, hedge funds, and even insurance companies have been rushing to jump on the crypto bandwagon since the market boom, often with the idea that crypto is a decades-long game.
As the space has grown, firms like Morgan Stanley (NYSE:), BNY Mellon, and State Street have entered the space, ranging from exposure to the asset class through investments to launching bitcoin-related products and offering custodial services.
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