Goldman Sachs is the first large United States bank trading crypto by trading a non-deliverable option with merchant bank Galaxy Digital.
Up until recently, Crypto-currency has traded primarily on the retail side, but this is seen as a critical move towards institutional investor acceptance. The bank is now acting as a principal in the transactions as opposed to just exchange based transactions.
Believers in crypto-currency see this as a major step in its development as an asset class analogous to hedge fund investing. It implies banks may be ready to stand by the maturity of the investment product. The uptake will likely be by hedge funds seeking exposure, and only later by direct pension funds and foundations.
Goldman Sachs has claimed that clients are demanding access to digital assets, and opportunities to trade Crypto.
The head of Goldman Sachs’ crypto trading envisions the development of an options market as the next step.