Goldman Sachs and Galaxy Digital Execute Over-the-counter Trade with Settled BTC Option

The trading branch of crypto bank Galaxy Digital has secured the first over-the-counter (OTC) cryptocurrency transaction with Goldman Sachs.

According to the announcement, the operation has been carried out in the format of a deal with a settlement option on Bitcoin.

A settlement or non-deliverable option is a contract that, at maturity, pays out based on the difference between the market value of the underlying asset and its predetermined price. As part of transactions with such instruments, there are no physical deliveries.

According to a press release shared by the company, Goldman Sachs is the first US-based bank to conduct an over-the-counter cryptocurrency deal. The parties have announced they plan to continue to cooperate in terms of operations with digital assets.

Galaxy Digital became last year the liquidity provider for Goldman Sachs in Bitcoin futures transactions on the Chicago Mercantile Exchange (CME).