Multinational investment bank Goldman Sachs now trades bitcoin futures blocks with Galaxy Digital Holdings, which acts as a liquidity provider as well as bids for buy and sell orders.
“The trades mark the first time Goldman has used a digital asset firm as a counterparty since the investment bank set up its cryptocurrency desk last month.” CNBC mentioned. “The moves by Goldman, a prominent global investment bank, may reverberate on Wall Street and beyond as banks face increasing pressure from clients seeking exposure to bitcoin. By being the first major US bank to begin trading cryptocurrency, Goldman is giving other banks an essential cover To start doing that as well.”
Galaxy will likely be chosen as Goldman’s partner due to the limitations the banking industry faces in dealing directly with Bitcoin. But products like bitcoin futures, which are less directly tied to the underlying asset, are more acceptable at the regulatory level.
The move and the growth of institutional bitcoin services in general, Damien Vanderuelt, co-chair of Galaxy Digital, is critical to the long-term price of bitcoin.
“You are moving market participants from being 90% retail, where a large portion of them have access to ridiculous amounts of leverage, to an institutional community, with proper, tried and tested rules and regulations on leverage, liability for mismatched assets and more,” he said. for CNBC. “The more activity that moves into the institutional community, the less volatility there will be.”
Goldman It has been relatively progressive in embracing bitcoin in recent months. He. She announced her plans To introduce bitcoin investment tools to clients in March, led an investment round In Bitcoin data provider Coin Metrics metrics in May and, in the same month, unveiled the cryptocurrency trading team and showcased bitcoin derivatives.