The Goldman Sachs Group Inc. (GS) executed its first over-the-counter (OTC) bitcoin trade through its trading partner Galaxy Digital Holdings Ltd. (GLXY).1This is the first such transaction by a major U.S. bank.

The Bitcoin (BTC) trade executed by Goldman is a non-deliverable option (NDO), also known as a cash-settled option. This means that when the option is settled, instead of receiving Bitcoin, the option-holder is given its cash value. Goldman’s transaction marks a departure from the company’s earlier digital trades for the derivatives marketplace CME Group and indicates its willingness to assume the added risk that comes with an OTC trade.2 An OTC trade is executed directly between counterparties without using a centralized exchange.


  • Goldman executed the first Bitcoin OTC trade, marking further institutional adoption of Bitcoin.
  • The non-deliverable option, faciliated by Goldman trading partner Galaxy, will settle as cash at maturity.
  • Bitcoin has been seen as an inflation hedge; Goldman’s first BTC OTC trade comes as inflation is spiking worldwide.

By Bob Malakas

Bob is the first and the last on the scene.

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