Galaxy Digital, the cryptocurrency trading bank led by Mike Novogratz, has become a liquidity provider for Goldman Sachs in Bitcoin futures on the Chicago Mercantile Exchange, according to a press release.
Overall, the collaboration envisions Galaxy Digital serving as Goldman Sachs’ agent in the cryptocurrency market across over-the-counter spot and futures trading, lending, and the creation of structured products.
According to the press release, Galaxy Digital maintains strong relationships with a broad range of exchanges, custodians and financial institutions. This enables the cryptocurrency trading bank to provide liquidity at competitive prices.
The firm led by Mike Novogratz acts as a market maker for 90 digital assets. Its trading partner network comprises 300 firms focused on institutional work.
Co-Chairman Damien Vanderwilt told CNBC in an interview CNBC that Goldman Sachs cannot directly trade Bitcoin because of strict banking regulation.
The executive attributed the initiative to strong client demand. The report came after Goldman Sachs strategists described cryptocurrencies “an unattractive investment”.
In March, Chief Operating Officer John Waldron said there was growing client interest in digital assets.
In May, Goldman Sachs launched non-deliverable forwards on Bitcoin with settlement in fiat currency. The trading partner was Cumberland DRW.
In June, Bloomberg reported that Goldman Sachs plans to launch trading of Ethereum-based futures and options.
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