Goldman Sachs Pursues Bargain Crypto Platforms after FTX Debacle
Goldman Sachs is contemplating allocating millions of dollars in double figures for investment or buyout of crypto firms following the crash of the crypto exchange FTX. The respective collapse has drastically impacted the valuations and decreased investor interest. The decline of FTX has mounted the requirement for additional measures to enhance trust among the community as per the chief of digital assets at Goldman – Mathew McDermott.
Goldman Sachs Considers Acquiring Economic Crypto Companies after FTX Downfall
The executive stated that this would be carried out through the establishment of more regulated and reliable crypto firms, and banking institutions consider this as a chance to enhance their business. He added that the platform is engaged in accomplishing due diligence regarding many diverse crypto companies. However, McDermott did not provide details on the respective matter.
The executive mentioned, while appearing in an interview, that they are witnessing a few very cost-effective and very exciting opportunities. The now-bankrupt crypto exchange FTX submitted its bankruptcy request in the US on Nov. 11. This was done after its abrupt downfall, igniting concerns that the respective contagion would keep on magnifying. As a result, several called for additional crypto regulation.
At present, the position of the crypto market is very low in the case of sentiments, as per McDermott. The amount that might be invested by Goldman is not huge for it as it earned $21.6b the previous year. Nonetheless, its enthusiasm to keep making investments at a time when the sector is trembling expresses the company’s vision.
David Solomon, the CEO of Goldman Sachs, remarked on this on the 10th of the last month. He asserted that, despite the highly speculative nature of crypto assets, he witnessed a great potential in their underlying technology because its infrastructure gets additionally formalized. Goldman Sachs has invested in eleven crypto firms that offer facilities like blockchain management, crypto data, as well as compliance.
The Company Launches ‘Datonomy’ Data Service
Apart from that, the platform has joined Coin Metrics and MSCI for the launch of “datonomy” (a data service) to focus on the classification of digital assets in line with the manner of their use. The company is additionally constructing a separate distributed ledger technology, according to McDermott.
