Goldman Sachs, a leading global investment bank with $2.5 trillion in assets under management, reportedly plans to spend “tens of millions of dollars” to bargain crypto firms, stepping in as a potential lifeline for companies hit by FTX's dramatic collapse.
"We do see some really interesting opportunities, priced much more sensibly," Mathew McDermott, Goldman Sachs' head of digital assets, told Reuters.
"It's definitely set the market back in terms of sentiment, there's absolutely no doubt of that," he added. "FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform."
According to McDermott, Goldman Sachs saw increased trading volumes post-FTX collapse as investors opted for regulated and well-capitalized counterparties. "What's increased is the number of financial institutions wanting to trade with us," he said. "I suspect a number of them traded with FTX, but I can't say that with cast iron certainty."
The financial giant has already invested in 11 different crypto companies that provide compliance, cryptocurrency data, and blockchain management services. The bank is also building its own private distributed ledger technology and established a dedicated digital assets team of more than 70 people, including a seven-strong trading desk, Reuters reports.