The giant of American finance, Goldman Sachs, intends to spend “tens of millions of dollars” for buy or invest in cryptocurrency companies whose valuations have been hit by the bankruptcy of the cryptocurrency exchange FTX.
According to Reuters, the bank is conducting due diligence on several crypto companies. “We see some really interesting opportunities, at much more reasonable prices”he has declared Mathew McDermottHead of Digital Assets at Goldman Sachs.
Goldman Sachs is currently invested in several crypto companies, including CertiK, TRM Labs, Elwood Technologies e Coin Metrics. Earlier this year, the investment bank re-established a cryptocurrency trading desk amid growing interest from institutional clients. More than 70 people are currently working for Goldman’s digital assets team, and the bank is also building its own distributed ledger technology, according to McDermott.
According to the US giant, the FTX crisis is a great opportunity. The implosion of cryptocurrency exchange FTX “definitely set the market back in terms of sentiment”, as “FTX was a manifesto in many parts of the ecosystem”. However, McDermott believes that “the underlying technology continues to work.”
Goldman CEO, David Solomonsaid during the FTX drama last month that cryptocurrencies are “highly speculative,” but he sees a lot of potential in the underlying technology as its infrastructure becomes more formalized.
FTX leveraged client funds to fund Alameda bets
Il crypto exchange, FTX until a few weeks ago, one of the largest on the digital asset scene filed for bankruptcy protection, Chapter 11on 11 November following a liquidity crisis. The cryptocurrency exchange has reportedly tapped its customers’ assets to fund risky bets from its affiliate, Alameda Researchthus initiating its demise.
In reality, the collapse of FTX increased Goldman Sachs’ trading volumes as investors sought to flock to regulated and well-capitalised players. “What has increased is the number of financial institutions that want to trade with us“McDermott told The Block. “I suspect some of them have been involved with FTX, but I can’t say for absolute certainty.”