According to a report by Reuters, Goldman Sachs is planning to spend a significant amount of money on discounted cryptocurrency investments following the implosion of the FTX exchange. The bank is said to be investing tens of millions of dollars in the opportunity.
Reuters reported on Tuesday that Goldman Sachs (GS), one of the largest investment banks in the world, is thinking about putting tens of millions of dollars into cryptocurrency companies whose stock prices have dropped since FTX went bankrupt.
On November 11, the cryptocurrency exchange FTX filed for Chapter 11 bankruptcy after deeply concerning truths about its finances and its relationship with a trading firm called Alameda Research were made public.
The failure of FTX was only the most recent setback for a sector that has been dealing with a slew of high-profile bankruptcies in recent months as a result of a weakening market. Companies like the cryptocurrency lender BlockFi have been impacted by the contagion, and the company also filed for bankruptcy last month.
Mathew McDermott, head of digital assets at Goldman Sachs, was quoted by Reuters as saying,
“We definitely see some really exciting opportunities, priced much more fairly. FTX was a poster child in many parts of the ecosystem but to reiterate, the underlying technology continues to perform”
He said that Goldman Sachs sees the growing need for trustworthy people in the industry as an opportunity that the bank can take advantage of.
According to McDermott, FTX’s collapse has raised the need for more trustworthy, regulated cryptocurrency players, and big banks see an opportunity to take up the business.
He also said that Goldman is doing due diligence on a number of other new crypto businesses, but he didn’t say more.