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Goldman Sachs is stepping up its investments in bitcoin, and even crypto at large, shouldn’t come as a surprise to anyone now. The leading global investment and financial services firm has focused on this quarter as the one that launched its crypto services, and this recent partnership announcement is exactly that.
The Partnership Perspective: Galaxy Digital
According to a CNBC report, Goldman Sachs partners with Mike Novogratz’s crypto investment bank, Galaxy Digital. The partnership will allow Galaxy Digital to be Goldman’s liquidity provider for bitcoin futures buy and sell orders on the CME group’s derivatives exchange.
In a statement regarding the partnership, Goldman Sach’s head of digital assets for Asia-Pacific, Max Minton, said, “Our goal is to provide our clients with the best execution prices and secure access to assets. that they wish to negotiate. In 2021, this now includes crypto, and we’re delighted to have found a partner with a wide range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem.
The Galaxy Digital team is of course optimistic and looks to the future; Galaxy Co-Chairman Damien Vanderwilt said publicly in an interview last week that “once one bank does this, other banks will have [fear of missing out] and they will be integrated because their customers requested it ”. Vanderwilt’s suggestion that other banks will follow suit is certainly not excluded either. “There’s a whole dynamic with the big banks that I’ve seen time and time again: security in numbers,” Vanderwilt said.
Related reading | Bitcoin Flash Crash Hits As Goldman Sachs Announces Crypto Services
More “banking” for your money
Banks are understandably timid when it comes to taking the plunge, but crypto derivatives have been a speculative tool that many see as a gateway for more financial services companies to get involved. This is due to strict regulations that make bitcoin traditionally difficult to maneuver, but more streamlined in the derivatives landscape.
News of the partnership comes less than a week after reports that Goldman Sachs is considering offering its clients the ability to trade options and futures on Ethereum. Additionally, the news comes just months after the company resurrected plans from around four years ago around a cryptocurrency trading desk. This negotiating desk, of course, came to life last month.
Speculation abounds that the recent partnership for Goldman could put pressure on the rest of the institutional market to follow in their 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 requests ETF with possibility to invest in Bitcoin
Featured image from Pixabay, Charts from TradingView.com
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