The moves by Goldman, the preeminent global investment bank, may reverberate on Wall Street and beyond as banks increasingly face pressure from clients who want exposure to bitcoin.
But nothing prevents banks from dealing in financial wagers tied to the price of the underlying coins, and that is where Wall Street is starting its crypto journey.
Galaxy — whose management ranks are stocked with ex-Goldman executives familiar with running regulated businesses — positions itself as a bridge for financial companies and crypto venues.
It’s a step toward the vision that Vanderwilt and the other former Goldman executives have for the development of bitcoin’s market infrastructure.
Banks will be able to offer clients ways to wager on bitcoin using derivatives, taking a page from the world of established finance, he said.
In 2017, as a senior Goldman trading executive, he was tasked with helping start the bank’s first effort to trade bitcoin futures.