Reuters reported that the central investment bank Goldman Sachs intends to invest tens of millions of dollars in cryptocurrency companies whose valuations were reduced due to the demise of the cryptocurrency exchange FTX.
Goldman Sachs’ Head of Digital Assets, Matthew McDermott, has come out saying that they are looking into crypto-related businesses. In addition, the bank was developing its own distributed ledger technology, he said (DLT).
We do see some really interesting opportunities, priced much more sensibly.
McDermott did not mince words when describing the consequences of FTX.
As he stated:
It’s definitely set the market back in terms of sentiment, there’s absolutely no doubt of that. FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform.
Goldman Sachs owns a number of significant cryptocurrency companies, including Coin Metrics, TRM Labs, Elwood Technologies, and CertiK. The investment bank revived a bitcoin trading desk early this year in response to growing interest from institutional clients.
On November 11, after experiencing financial difficulty, FTX filed for Chapter 11 bankruptcy protection. Through its linked trading company, Alameda Research. This cryptocurrency exchange allegedly utilized customers’ funds to put them at risk by supporting ill-advised gambles.
Moreover, a wide range of businesses felt the effects; BlockFi, A cryptocurrency lender, was the most recent to do so last month. Due to investors’ desire to engage in regulated and well-capitalized firms, Goldman Sachs’ trading volume increased after FTX’s bankruptcy.
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Furthermore, the worldwide market for cryptocurrencies reached its peak at $2.9 trillion in late 2021 but has since lost approximately $2 trillion due to numerous high-profile corporate bankruptcies. The market value of all digital currencies was $850 billion at the time of writing.