Goldman Sachs (GS) - Get Report is taking on Galaxy Digital Holdings BRPHF, the digital asset management firm founded by ex-Goldman partner Michael Novogratz, as a liquidity provider for Bitcoin futures.
Galaxy will provide the liquidity for block trades on CME, as Goldman expands its cryptocurrency offerings, the companies said.
Goldman is getting back into digital currency trading to help big customers, such as hedge funds, trade Bitcoin futures, Bloomberg reports.
"Our goal is to equip our clients with best execution pricing and secure access to the assets they want to trade," Max Minton, head of digital assets for Goldman Sachs' Asia-Pacific division, said in a statement. "In 2021, this now includes crypto.”
Goldman stock recently traded at $352.23, down 2.6%. It has climbed 45% over the past six months, as the economic recovery has boosted banks. But it has dropped 10% since June 4, as stocks that would benefit from faster economic growth and higher rates have pulled back.
Galaxy recently traded at $18.39, down 0.2%.
Goldman said last month that it’s forming a wealth-management joint venture with state-owned Industrial and Commercial Bank of China. the New York investment bank thus becomes the latest foreign lender to take advantage of a further opening of the country's financial sector to target rising affluence in mainland China.
In April, Goldman posted stronger-than-expected results for the first quarter, helped by surging investment bank revenue.
Profit registered $18.60 a share, nearly six times higher than the year-earlier tally and ahead of the analyst consensus forecast of $10.22 a share.