Goldman Sachs becomes 1st major bank in US to execute bitcoin OTC transaction

Goldman Sachs, the huge U.S. investment bank, has conducted its first-ever over-the-counter (OTC) transaction with cryptocurrency. This was a bitcoin (BTC) OTC transaction with Galaxy Digital, the crypto investment company of billionaire Mike Novogratz.

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First over-the-counter BTC by major U.S. bank

Galaxy Digital announced this "first of its kind" transaction in a press release on March 21. According to the press release, this is a bitcoin non-deliverable option (NDO) transaction and is the first-ever OTC crypto transaction conducted by a major U.S. bank.

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"This is the first OTC crypto transaction by a major bank in the U.S. Goldman Sachs continues to expand its cryptocurrency offerings, demonstrating the continued growth and adoption of digital assets by banking institutions."

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Says the press release. Galaxy and Goldman Sachs have been working together on crypto for some time. Galaxy facilitated the launch of Goldman Sachs' bitcoin futures on the Chicago Mercantile Exchange (CME) last summer. Damien Vanderwilt, co-president and head of global markets at Galaxy Digital, said:

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"We are excited to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks who view OTC as a channel for trading digital assets. Goldman's continued confidence in us is a testament to Galaxy's expertise and ability to meet the changing demands of institutions as crypto solidifies itself as the fifth asset class."