Goldman Sachs is ramping up efforts to bridge the gap between institutional investors and Bitcoin(BTC) trading. In a first for an American multinational investment bank, Goldman Sachs partnered with Galaxy Digital to begin trading Bitcoin futures. The move could potentially force other financial incumbents into action as client demand for exposure to cryptocurrencies increases.
Goldman has been hinting at its shifting policy towards crypto markets for some time now. Back in May, the bank’s internal memo revealed the creation of a crypto desk within its global currencies and emerging markets trading division. However, the partnership with Galaxy will mark the first occasion in the bank’s history of using a digital asset firm as its counterparty.
For those not in the know, Galaxy Digital is a financial services and investment management innovator run by its founder Mike Novogratz. Its co-president Damien Vanderwilt recently appeared on CNBC to talk about the implications of the partnership on the larger banking ecosystem.
Elaborating on the rationale behind the tie-up, Vanderwilt underscored that Goldman needed Galaxy’s services because its own regulatory policy prohibits it from directly engaging with crypto assets.
Vanderwilt asserts that by leading the way for cryptocurrency trading, Goldman will make it easier for other banks to transition. As more banks allow clients to engage with Bitcoin and other currencies of its ilk, the scope and prospects of the market improve, lowering the volatility of digital assets as a consequence. In Vanderwilt’s view: