Goldman Sachs announces milestone with first over-the-counter crypto trade with Galaxy Digital

A Goldman Sachs Group Inc. logo hangs on the floor of the New York Stock Exchange in New York, U.S., on Wednesday, May 19, 2010.

The market for derivatives tied to digital assets is growing.

CNBC has learned that the firm is close to announcing that it is the first major U.S. bank to trade over-the-counter. Goldman traded a non-deliverable option with a merchant bank.

The move is seen as a significant step in the development of the markets for institutional investors. According to the firms, Goldman is taking on more risk by acting as a principal in the transactions compared to the exchange-based CME Group.

The increased maturity of the asset class for institutional players like hedge funds can be seen in Goldman's involvement.

This trade is the first step that banks have taken to offer direct, tailored exposure to the market on behalf of their clients.

The options trades are more relevant to the markets than other exchange-based products.

Hedge funds have been looking to hedge their exposure to the virtual currency, either by making bets on its price without owning it, or by hedging their exposure to it. The market for these instruments is dominated by a few firms.

Max Minton, Goldman's Asia Pacific head of digital assets, said in a statement that they are pleased to have executed their first cash-settledcryptocurrencies options trade.

Goldman has seen high demand for options tied to digital assets.

The development of options markets is the next big step.