In March, Goldman Sachs chief David Solomon proposed to FTX CEO Sam Bankman-Fried to help organise an initial public offering for a Bitcoin exchange and a dialogue with the CFTC. FT reports, citing sources.
In August 2021, FTX US acquired LedgerX, a regulated exchange specialising in crypto derivatives. Around the same time, the head of the US unit Brett Harrison promised to give clients access to trading crypto derivatives.
In March 2022, FTX filed with the CFTC for approval to sell crypto derivatives to retail investors with borrowed funds. In the filing, the Bitcoin exchange asked for permission to settle trades directly, bypassing intermediaries such as Goldman Sachs.
The FT reports that Solomon and Bankman-Fried discussed Goldman Sachs’ involvement in organising subsequent rounds of financing and a potential IPO. Sources said the FTX CEO has not yet made a final decision on the second option.
In April 2021, the investment bank was among those who helped Coinbase go public.
Top executives allegedly discussed potential cooperation in crypto market-making in light of rising interest from Goldman Sachs. Solomon also said the institution is interested in providing traditional banking services to FTX, according to the paper.
In July 2021, Bankman-Fried did not rule out a purchase by Goldman Sachs or CME Group in the future.
In January 2022, FTX raised $400 million at a valuation of $32 billion.
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