For Bitcoin (BTC) Futures, Goldman Sachs uses Galaxy Digital

Mon 21 Jun 2021 ▪ 19h00 ▪ 3 min read — by Violaine Silverstein

Investment bank Goldman Sachs is now working in partnership with Galaxy Digital. This company’s role is to provide quotes for buy and sell orders on Bitcoin (BTC) Futures contracts.

Galaxy Digital, liquidity provider for Goldman Sachs

In banking-ese, a company that provides quotes for buy and sell orders is called a ‘Liquidity Provider’, or LP.

The holding company Galaxy Digital, which specialises in crypto investments and asset management, will now play this role of liquidity provider for the American bank Goldman Sachs.

The Wall Street investment giant wants to ramp up its cryptocurrency asset services. The bank started its crypto offering in 2018, but it is really since the beginning of the year that it has taken the step of increasing its crypto services.

To support it in this process, Goldman Sachs has chosen Galaxy Digital, one of the largest players in the crypto investment market.

Damien Vanderwilt, Co-President of Galaxy Digital, said, “We are proud to be a strategic partner of Goldman and look forward to working with [the bank] to meet the increasing demand from institutions and pave the way to broader adoption of cryptocurrencies as an asset class.”

You may well be aware that the banking sector cannot directly manage cryptocurrencies. There are plenty of regulations prevent it from doing so. As a result, Goldman Sachs is forced to go through an intermediary like Galaxy Digital to make the transition between digital assets and traditional financial assets.

Futures contracts for Bitcoin and other cryptocurrencies

Ultimately, this partnership aims to offer Futures contracts for Bitcoin. These are increasingly in-demand among bank customers – and in particular those of Goldman Sachs.

However, Bitcoin is not the only cryptocurrency that the investment bank is interested in. It is also planning to develop offers around other cryptocurrencies, starting with Ethereum (ETH).

This partnership, which combines a crypto asset management giant with a banking giant, is based on very solid foundations. Above all, the growing interest of banks and institutions in cryptocurrencies proves that they are not just speculative products that are doomed to disappear.

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Violaine Silverstein avatar
Violaine Silverstein

Quand j’ai commencé dans les cryptos il y a 3 ans, il y avait plus de 95% d’hommes et encore très peu de femmes, bon ça n'a toujours pas beaucoup changé, mais les choses bougent et je suis fière de representer les femmes dans ce milieu très technique qui est passionnant et plein d'avenir.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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