Goldman Sachs is expanding its crypto presence to offer Bitcoin futures trading with crypto merchant bank Galaxy Digital. Founded by Mike Novogratz, Galaxy Digital will provide liquidity for Goldman Sachs, helping hedge funds and institutional clients wager on Bitcoin (BTC).
Galaxy co-president Damien Vanderwilt said Goldman, as the first major US bank to begin trading crypto, is giving other banks cover to begin doing so.
Serving as Goldman’s “liquidity provider”, Galaxy will provide quotes for buy and sell orders on CME Group Bitcoin futures. They would buy up large portions of a specific asset before selling them to anyone that’ll buy them.
Galaxy has positioned itself as a bridge for financial companies and crypto venues. Its management ranks are stocked with ex-Goldman executives familiar with running established financial businesses.
Banks will be able to offer clients ways to wager on Bitcoin using derivatives. That includes arbitrage bets related to the price gap between CME Bitcoin futures and Bitcoin itself, relative value trades between Bitcoin and Ether (ETH), and the creation of Bitcoin structured notes.
Last week, Goldman was reportedly planning to move beyond Bitcoin, offering options and futures trading in Ether.
Crypto Finance Startup Amber Valued at $1B
Bitcoin’s price has stagnated after falling more than 40% from its all-time-high in April. At the time of writing, Bitcoin is trading at $35,364.78, up 0.1% over the previous 24 hours. Ether is trading at $2,210.28, up 2.0%.
Despite the recent massive price drops, the cryptocurrency market has seen a growing interest from mainstream venture capital firms. Crypto trading startup Amber, has recently raised $100 million at a pre-money valuation of $1 billion. The deal propels the Hong Kong-based startup into the ranks of “unicorns”.
Investors include China Renaissance, which led the round, and Tiger Brokers, Tiger Global Management, Gobi Partners, among others. Existing investors Pantera Capital, Coinbase Ventures, and Blockchain.com also joined in.
Founded by former Morgan Stanley traders, Amber initially set out to apply machine learning algorithms to quantitative trading. The firm offers over 500 institution clients with algorithmic trading, OTC trading, lending and borrowing, derivatives, among other services.
In the third quarter of 2020, Amber launched its mobile app, widening its scope from institutional clients to retail investors. It said the trading app has so far accumulated over 100,000 registered users.
Amber now has over 330 employees with operations in Hong Kong, Taipei, Seoul, and Vancouver.
Uniswap is reportedly exploring tie-ups with large financial institutions such as PayPal, Robinhood, E*Trade, Stripe and Paxos. The largest decentralized exchange on Ethereum is said
Crypto exchange Binance CEO Changpeng Zhao (CZ) hints to step down as he is looking for a replacement. And Justin Sun, Tron blockchain’s founder, joins