Billionaire crypto financier Mike Novogratz’s Galaxy Digital has agreed to provide liquidity to Goldman Sachs for the bank’s bitcoin futures trades.
Under growing demand from institutional clients, in March Goldman Sachs reopened its crypto trading desk after a three-year hiatus. The desk is part of the bank’s U.S. Global Markets division.
Galaxy Digital will provide liquidity, or act as a market maker, for block trades on CME Group, Galaxy said in a statement on its website.
The partnership with Goldman Sachs is one of several high-profile moves Galaxy has made in recent months, including a string of acquisitions of digital-asset management firms. The acquisitions include Vision Hill and BitGo, the latter of which Galaxy bought for $1.2 billion in May. Goldman becomes the second major investment bank in the past four months to close deals with Galaxy Digital. In March, Galaxy said Morgan Stanley had begun offering wealth-management clients access to some of its bitcoin funds.
Despite bitcoin’s price stagnation after falling more than 30% from its all-time-high in May, institutional investors are still piling into the space.