Goldman Sachs Jumps into The Cryptocurrency Bandwagon, Offers OTC on Crypto trading
Cryptocurrency came into existence as a fallout of the lacunae in traditional financial regimens like Central Banks and financial institutions, which were archaic and had had unnecessary controls. The DeFi nature of cryptocurrency endeared to the masses and is now finding greater acceptance. The big banks and financial institutions are opening up and adopting cryptocurrencies in a big way. The latest is Goldman Sachs which became the first Bank to offer the OTC crypto trade.
The Goldman Sachs bank is further widening its indulgence in the crypto trade and is offering a non-deliverable bitcoin option through Galaxy Digital.
The decision will become a watershed moment and will symbolize the first foray by any bank to Bank’s Bitcoin trade and crypto market instead of their clients.
Traditional Banking regimens, including Central Banks, were reluctant to admit Cryptoassets like Bitcoin (BTC) into their ecosystem. Numerous financial institutions which hosted Hedge funds were looking at modalities to include Bitcoin into their economic ecosystem. It will become advantageous for these financial entities to increase the maturity of Hedge enabling them to make wagers without directly owning them.
Goldman Sachs Bank has, however, taken a step further and has become the principal in all these transactions. However, it has taken a calculated risk with its exchange-based CME Group bitcoin products.
The latest move comes in the wake of realizing that an orderly and pertinent change is being ushered in the upcoming future of markets and exchange-based products. It also signifies that despite the associated risks, banks are looking at crypto with greater faith and consider it a mature investment.
The Nitty Gritty Of OTC Or Over-The-Counter Crypto Trading
The OTC or over-the-counter crypto trading is a private dealing of selling or buying crypto assets without the involvement of the middle man. Any party can barter one form of crypto assets with another. Though risky, the latest move by the Bank will enable wider choices in crypto trade and will also allow customizable exposures to the crypto market.
