Goldman Sachs to boost investments in the crypto industry amid FTX collapse

The Goldman Sachs financial conglomerate plans to spend tens of millions of dollars on buying or investing in crypto companies whose valuations have fallen due to FTX collapse. Reuters reports Reuters.

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The bank’s Head of Digital Assets, Matthew McDermott, clarified that the bank is conducting due diligence on several crypto firms. He did not disclose details.

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He added that the FTX crisis increased demand for more reliable regulated providers, and large banks saw opportunities to expand their businesses.

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“We really see some genuinely interesting opportunities at far more reasonable prices,” McDermott said.

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Goldman Sachs has already invested in 11 crypto firms, including CertiK, One River Digital, Elwood Technologies, Blockdaemon and Coin Metrics. The bank’s digital assets division employs around 70 people. The institution is also developing its own private blockchain technology.

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“The FTX bankruptcy has definitely set the market back in terms of sentiment, there is no doubt about that. The company was a model in many parts of the ecosystem. But, as I reiterate, the underlying technology continues to work,” McDermott said.

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He noted that the FTX crisis increased Goldman Sachs’ crypto trading volumes, as investors began turning to regulated and well-capitalised participants.

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“What has increased is the number of financial institutions willing to trade with us. I suspect many of them traded through FTX. But I cannot state this with iron-clad certainty,” McDermott said.

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Earlier reports indicated that in March Goldman Sachs proposed FTX collaboration.

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