Wall Street banking giant Goldman Sachs is reportedly hunting for attractive deals in the crypto space post the collapse of crypto exchange FTX. As we know, the FTX contagion has impacted several crypto firms taking the overall industry valuations down.
Goldman Sachs believes that this could be the right time to make the move and is willing to spend tens of millions of dollars. Speaking to Reuters, Mathew McDermott, Goldman’s head of digital assets, said that the FTX collapse has led to the heightened need for strong, trustworthy, and regulated cryptocurrency players. This is a good opportunity for big banks to pick up businesses, he added.
Without revealing many details, McDermott said that Goldman Sachs is currently conducting due diligence for a number of crypto firms. “We do see some really interesting opportunities, priced much more sensibly,” McDermott said.
Some of the top industry players like BINANCE have also been making moves to get a pie of some distressed, yet fundamentally strong crypto firms.
Goldman Sachs on FTX Collapse
Last month on Nov. 11, FTX filed for Chapter 11 bankruptcy after its massive implosion in a week’s time. Speaking on this, McDermott
“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.”
Splintering a few million-dollar deals, Goldman Sachs is also just testing the waters currently. However, it believes that the massive crypto market shakeout brings some long-term opportunities.
Goldman Sachs is not the only banking giant seeking crypto opportunities. Other big banks also continue to believe in the crypto story. “I don’t think it’s a fad or going away, but I can’t put an intrinsic value on it,” Morgan Stanley CEO James Gorman said.
Similarly, HSBC CEO Noel Quinn, said that they plan to expand into crypto trading and investing for retail customers.
Goldman Sachs has been showing interest in the crypto space for a while. Last month, it announced plans to unveil a crypto classification system.