Goldman Sachs has executed an over the counter( OTC) Bitcoin non-deliverable option (NDO), the first OTC crypto transaction by a major U.S. bank claims Galaxy Digital, its counterparty. In June last year, Goldman re-opened its Bitcoin trading desk in response to institutional demand. Until now, its options trading has been limited to CME options, whereas with OTC options, the bank can offer customers a more tailored approach.
This is another of Goldman’s steps in the crypto and blockchain sectors. Its wealth management division offers clients access to crypto funds. And at one stage, Goldman was exploring launching a blockchain-related ETF, although we believe it has not yet launched.
The bank has made a wide range of investments in startups. These include crypto custody company Anchorage, crypto infrastructure firm Blockdaemon, and Coin Metrics, a blockchain analytics startup.
It’s also very active on the enterprise blockchain front. It has adopted DAML for its digital asset tokenization efforts. A number of banks are looking at tokenization for conventional assets such as stocks, bonds, funds and real estate. Goldman Sachs is a participant in JP Morgan’s Repo blockchain network and HQLAX, the blockchain collateral platform which was one of the first blockchain exposures for Mathew McDermott, Goldman’s Digital Assets head.
Goldman Sachs has been involved in multiple central bank digital currency (CBDC) initiatives, including acting as one of the underwriters for the €100m European Investment Bank blockchain bond issuance, which was settled with a CBDC. While that was a production transaction, it also participated in CBDC trials with the SIX Digital Exchange.
