- Goldman Sachs intends to invest $10 million in crypto firms.
- The FTX crash has had a huge impact on the Crypto market.
Goldman Sachs (GS), one of the world’s leading digital banking platforms, announced plans to invest $10 million to buy or invest in crypto firms whose valuations have been impacted by the demise of the crypto exchange FTX.
According to Reuters, Goldman Sachs’ head of digital assets Mathew McDermott stated that the big banks see prospects in the field since the FTX crash emphasized the need for more regulation inside the market. Additionally, the Executive added that the firm is already seeing opportunities because pricing is more reasonable and is already conducting thorough research on some crypto companies.
Goldman Sachs Investments After the Demise of FTX
Goldman Sachs has recently invested in Ceritk, TRM Labs, Elwood Technologies, and Coin Metrics. Due to rising demand from institutional clients, the investment bank re-established a crypto trading desk earlier this year. According to McDermott, Goldman’s digital assets team currently employs over 70 employees, and the bank is also creating its own private distributed ledger technology.
The FTX crisis presents a chance for the firm. McDermott noted that the crypto exchange’s demise impacted the market’s attitude because FTX was a poster child in many sectors of the ecosystem. Yet, he believes that the core technology is still doing well.
Following the decline of the FTX, crypto firms have been impacted, and as a result, institutional investors such as Goldman Sachs are seeking opportunities to buy and invest at cheaper prices, while the repercussions of the FTX are decreasing values.