The news that Goldman Saches entering into a partnership with Galaxy Digital, a crypto Management firm would further consolidate crypto currency as an emerging asset class.
Goldman Sachs began trading Bitcoin futures through Mike Novogratz’s Galaxy Digital network, facilitating banking institutions. Galaxy Digital unveiled the agreement as part of Goldman Sachs’ crypto investment strategy.
Galaxy and Goldman Sachs –Partnership
Goldman Sachs has advanced its efforts further to help hedge funds and other large institutional clients in struggling with bitcoin.
The bank has commenced trading bitcoin futures in partnership with Galaxy Digital, the crypto merchant bank founded by Mike Novogratz.
Under growing demand from institutional clients, in March Goldman Sachs reactivated its crypto trading desk following a three-year hiatus. The desk is part and parcel of the bank’s U.S. Global Markets division.
According to Galaxy co-president Damien Vanderwilt, this is, for the first time, that the Goldman has employed a digital assets firm as a counterparty since the investment bank launched its bitcoin desk last month.
The recent moves by Goldman Sachs, the world’s largest investment bank, might have effect on Wall Street, and ripple may go beyond, as banks increasingly confront with pressure from clients, seeking bitcoin exposure.
Goldman is successfully providing other banks permission to start trading cryptocurrencies by being the first large U.S. bank to do so, according to Vanderwilt, a former Goldman partner who joined Galaxy last year.
“There’s a whole dynamic with the major banks that I’ve seen time and time again: safety in numbers,” Vanderwilt said this week in an interview. “Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it.”
Galaxy has made many high-profile moves in recent months. These include a succession of purchases of digital-asset management companies. Vision Hill and BitGo, the latter of which Galaxy purchased for $1.2 billion in May, are among the acquisitions.
Galaxy’s acquisitions have more than doubled the firm’s all-inclusive income since 2020, and are part of its pathway to a U.S. listing later this year.
New Era of efficiency
According to multiple sources, Goldman Sachs is the first bank in the US to actively trade cryptocurrencies. Bitcoin and cryptocurrency are viewed and considered by many fiat banking institutions as a financial bubble. Following more than a decade of existence, many financial experts feel crypto is still a hoax.
However, because of the new Goldman-Galaxy cooperation, consumers will put pressure on banks to expose their customers to cryptocurrency. Banking organizations will have no options, but to be obligated to gratify their clients as the pressure to give bitcoin intensifies.
Due to this, as more financial institutions back the currency, the level of global acceptance will rise. This results in making Bitcoin available in even the most remote corners of the market.This also in the long run, enhance Bitcoin’s adoption as well as lessen its volatility issues, which will diminish and eventually disappear.
This trend will be replicated in the Commonwealth and the banking institutions in the Commonwealth will have to come to terms with the reality and will have to accept crypto as a fully-fledged assent class.
