Get All Access for $5/mo

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

Opinions expressed by Entrepreneur contributors are their own.

SOPA Images | Getty Images

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.

Related: Ukraine Legalizes Cryptocurrency Industry

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

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.

Editor's Pick

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.