Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
The banking giant carried out the operation of a Bitcoin-linked instrument alongside Galaxy Digital. The move represents a milestone in terms of crypto acceptance by traditional financial institutions.
Goldman Sachs the heavyweight of Wall Street The U.S. bank has just become the first major U.S. bank to complete an over-the-counter (OTC) cryptocurrency trade.
This was reported by several news outlets, including CNBC y CoinDesk , este lunes. De acuerdo con los informes, Goldman negotiated an instrument linked to Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. called ‘non-deliverable option’ together with digital asset finance company Galaxy Digital . The trade is a type of cash-settled cryptocurrency options trade, it noted CoinDesk .
It is worth noting that an OTC transaction, which stands forOver-The-Counterrefers to the process of trading securities through a network a network refers to all nodes in the operation of a blockchain at any given moment in time. of broker-dealers rather than an exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. platform, as explained by Investopedia . This over-the-counter transaction may involve investment instruments that are listed on the stock exchange or not. In this case, it is a cryptocurrency product.
A milestone for the cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted.
Galaxy Digital, based in New York City, announced the milestone in a press release who was quoted by the media.
“ This marks the first OTC oTC, or ‘Over The Counter’ is trading that happens directly between two parties, with no exchanges or trading platforms involved. cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. transaction by a major bank in the U.S., as Goldman Sachs continues to expand its cryptocurrency offerings, demonstrating the continued maturation and adoption of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets by banking institutions “said the firm. They also stressed that the effort represents the continuation with Goldman Sachs .
The move represents a notable development in the development of the cryptocurrency market and the involvement of institutional investors, in part due to the nature of OTC trading and the fact that it represents a higher risk for the bank, as highlighted by CNBC . The co-chairman of Galaxy Damien Vanderwilt, added that the banking giant’s move also denotes the maturity of the market.
“ This deal represents the first step banks have taken to offer direct, customizable exposures to the cryptomarket on behalf of their clients “, Vanderwilt said in an interview. He added in the statement:
We are pleased to continue to strengthen our relationship with Goldman and hope that the transaction will open the door for other banks to consider OTC as a conduit for trading digital assets.
Goldman and Galaxy have history
The news comes a year after Goldman Sachs reopened its cryptocurrency trading desk after a three-year hiatus. The desk, which is part of theUS Global Markets the bank, was relaunched in the face of increasing demand from institutional clients, as covered by CoinDesk .
On the other hand, the investment bank is almost a year since it entered into a partnership with Galaxy for the first time in June 2021 for its futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. operations of Bitcoin . Since then, the company led by crypto-financial billionaire Mike Novogratz, provides liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. for blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. transactions on CME Group .
Most recently, earlier this month, a document filed with the U.S. Securities and Exchange Commission (SEC) revealed that the bank had been offering interested customers access to a pool of Ethereum a decentralized open-source blockchain with smart contracts functionality. issued by Galaxy . The strategy is part of an agreement in which Goldman receives a fee for referring investors to the fund.
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Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva