Goldman Sachs, which is driving investments in Bitcoin and even crypto in general, shouldn’t surprise anyone too much right now. The leading global investment and financial services company has highlighted this quarter as the one getting its crypto services going, and this latest announcement from the partnership aligns exactly with that.
The partnership perspective: Galaxy Digital
Goldman Sachs is partnering with Mike Novogratz’s crypto trading bank, Galaxy Digital, according to a CNBC report. The partnership will enable Galaxy Digital to become Goldman’s liquidity provider for buy and sell orders for Bitcoin futures on the CME Group’s derivatives exchange.
In a statement on the partnership, Max Minton, Head of Digital Assets for Goldman Sach’s Asia Pacific region, said: “Our goal is to provide our customers with best execution pricing and secure access to the assets they buy want to act. In 2021 this will also include crypto, and we are pleased to have found a partner with a wide range of liquidity places and differentiated derivative capabilities across the cryptocurrency ecosystem. ”
The Galaxy Digital team is of course optimistic about the future; Galaxy Co-President Damien Vanderwilt said in an interview last week that “once one bank does this, the other banks have” [fear of missing out] and they are accepted because their customers have asked for it. ”Vanderwilt’s suggestion that other banks should follow suit is certainly out of the question. “There is a whole dynamic at the big banks that I have seen again and again: Security in numbers,” says Vanderwilt.
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More “bank” for your money
Banks are understandably shy when it comes to getting in, but crypto derivatives have been a speculative tool that many see as a gateway for more financial services companies. This is due to strict regulations that make Bitcoin difficult to traditionally maneuver, but leaner in the derivatives landscape.
The partnership news comes less than a week after reports that Goldman Sachs plans to offer customers the opportunity to trade options and futures in Ethereum. Furthermore, the news comes just months after the company revived plans from around four years ago around a cryptocurrency trading desk. This trading desk actually came to life last month.
There is much speculation that Goldman’s recent partnership could put pressure on the rest of the institutional market to follow in its footsteps.
Crypto's continued emergence throughout 2021 have reeled in traditional investors to apply pressure financial services companies to service crypto assets. | Source: CRYPTOCAP on TradingView.com
Related reading | Goldman Sachs is applying for an ETF with the option to invest in Bitcoin
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