Goldman Sachs to Begin Offering Bitcoin to High Net Worth Clients
Leading global investment bank, Goldman Sachs, has indicated plans to offer Bitcoin (BTC) and Ethereum (ETH) to its high net-worth clientele. The service will be offered in conjunction with Goldman Sachs’ long-time collaborator in the crypto space, Galaxy Digital.
Goldman Sachs and Galaxy Digital Enjoy Long-Running Relationship
Goldman Sachs has long had its eyes on Bitcoin and Ethereum as it sought to expand its institutional asset class offerings. The bank has long sought to establish itself in the digital-assets-driven derivatives market. In June, 2021, the Wall Street giant made its first foray into crypto when it partnered with Galaxy Digital to launch and manage the bank’s Bitcoin futures trading product.
In March, 2022, Goldman Sachs made further inroads into the cryptosphere when once again in conjunction with Galaxy Digital, it executed its first ever over-the-counter (OTC) cryptocurrency transaction.
OTC Transactions Perfect For Goldman Sachs’ Calibre of Clientele
An OTC transaction usually facilitates trade between two or more parties in a much more private manner than transactions carried out via exchanges.
In the trade, the entity involved in buying and selling digital assets will act as the “desk.” The parties will then agree on the price of the asset in question, and then conduct the transfer of the asset between themselves.
OTC transactions are usually done by whales, who could either be high net-worth individuals or institutional investors.
Goldman Sachs’ historic OTC transaction was in the form of a BTC non-deliverable option (NDO).
Galaxy Digital Sees The Partnership as Promising
In a statement released after the event, Galaxy Digital’s Co-Founder and Head of Global Markets, Damien Vanderbilt said:
“We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets.”
Goldman Sachs, which has a proud 153-year history, is headquartered in New York City. The bank also has a significant presence in major financial hubs around the world, and plays custodian to assets with a combined value of nearly $2.5 trillion.
However, for a while now, the bank, which is a bastion of traditional investment, has increasingly shown interest in the nascent blockchain and cryptocurrency industries.
Goldman Sachs previously served as the exclusive financial advisor to Circle, the company behind the USD Coin (USDC).
Bitcoin’s current market cap of $884 billion represents a 20% share of the store of value market. Insiders at Goldman Sachs believe that the cryptocurrency could potentially grab as much as 50% of this market in the next few years and see its price skyrocket to $100,000.
Goldman Sachs also offers its clients access to ETH through Galaxy Digital’s Ethereum Fund. The financial startup’s partner of choice in its crypto journey, Galaxy Digital, has involved itself in blockchain and crypto from as far back as 2018. The company works with nearly 700 institutional trading partners.
