Goldman Sachs’ further investment in Bitcoin, and even broader cryptocurrencies, shouldn’t surprise anyone now. The top global investment and financial services company emphasized that this quarter is a period of vigorous development of their encryption services, and this recent cooperation statement fits this point.
Partner perspective: Galaxy Digital
according to CNBC report, Goldman Sachs is cooperating with Mike Novogratz’s encrypted commercial bank Galaxy Digital. This cooperation will enable Galaxy Digital to become a liquidity provider for Goldman Sachs’ Bitcoin futures trading orders on the CME Group Derivatives Exchange.
In the statement on the partnership, Max Minton, Head of Digital Assets, Goldman Sachs Asia Pacific, said: “Our goal is to provide our customers with the best execution pricing and secure access to the assets they want to trade. By 2021, this is now Including encryption, we are pleased to find a partner with a wide range of liquidity venues and differentiated derivatives capabilities across the cryptocurrency ecosystem.”
The Galaxy Digital team is certainly optimistic; Galaxy Co-President Damien Vanderwilt publicly stated in an interview last week, “Once one bank does this there, other banks will have [fear of missing out] They will join because their customers have been asking for it.” Van der Welt’s suggestion that other banks will follow suit is certainly not impossible. “I have seen the overall dynamics of large banks time and time again: quantity security,” Van der Wilt said.
More “banks” for your buck
It is understandable that banks are timid when getting involved, but crypto derivatives have always been a speculative tool, and many people see them as a gateway for more financial services companies to participate. This is because strict regulations make Bitcoin traditionally difficult to manipulate, but it is more streamlined in the field of derivatives.
Less than a week after it was reported that Goldman Sachs planned to provide customers with the ability to trade options and futures on Ethereum, the news of the cooperation was released. In addition, the news came just a few months after the company resumed its plans around a cryptocurrency trading desk about four years ago. Sure enough, that trading desk became active last month.
Many people speculate that Goldman Sachs’ recent partnership may put pressure on other institutional markets to get them on track.
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 applies for an ETF that can invest in Bitcoin
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