Goldman Sachs Executed Cash-Settled Bitcoin Options Trade

Source: Adobe/Rafael Henrique

Investment banking giant Goldman Sachs is “close to announcing” that it is the first major bank in the US to trade an over-the-counter (OTC) crypto transaction, per multiple reports.

The bank traded a non-deliverable bitcoin (BTC) option – a derivative tied to the BTC price that pays out in cash – with crypto merchant bank Galaxy Digital, CNBC reported today citing a statement.

Crypto investors use options to hedge risks or boost yields, and OTC transactions tend to be larger, privately negotiated trades, tailored to each party’s needs.

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The two firms are also cited as saying that Goldman is taking a greater risk by taking the role of a principal in this particular transaction than it did with the exchange-based CME Group bitcoin products that the bank previously started trading.

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Bloomberg further quoted Galaxy co-president Damien Vanderwilt as saying that the firm expects the trade to “open the door for other banks considering OTC as a conduit for trading digital assets.”


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