on the crypto
Recently, the crypto press has been looking into the damage caused by the failure of FTX. But as is often said, one man's loss is another's gain. Who are the lucky winners of the FTX deal? Maybe Goldman Sachs? Find out how the financial giant plans to profit from the FTX fiasco.
Goldman Sachs still believes in 'core technology'
The collapse of FTX clearly showed the flaws of some parts of the cryptocurrency ecosystem. As a result, investors are experiencing a real crisis of confidence. They are calling for clearer regulation of the industry to ensure better protection.
Mathew McDermott, head of digital assets at Goldman Sachs, admits the FTX affair "definitely dampened market sentiment." However, not all of the cryptocurrency world is a world of doom, and McDermott is fully convinced of this. In an exchange with Reuters, he said the "underlying technology continues to perform well."
Trading volumes on the rise
For Goldman Sachs, the FTX crisis is an opportunity. Indeed, the fall in the stock market has caused his clients to turn to another partner. In general, investors look for reputable, regulated and well-capitalised operators. Goldman Sachs therefore seems able to respond to the new needs of the community.
“What has increased is the number of financial institutions that have wanted to trade with us. I suspect some of them were doing it with FTX, but I can't say for sure." Mathew McDermott, Goldman Sachs
Ready to invest tens of millions of dollars!
On the other hand, Goldman Sachs sees the situation as an opportunity for invest massively in the industry. As is well known, the collapse of FTX led to the ruin of other companies.
Some of these troubled companies have real value to Goldman Sachs, which is ready to dip into the portfolio. The investment bank is looking into several to find the gems. Goldman Sachs intends to spend "tens of millions of dollars" to invest in or buy these companies.
“We're actually seeing some very attractive opportunities at a much more reasonable price point.” Mathew McDermott, Goldman Sachs
Indeed, some companies have seen their valuations plummet in this crisis. Others have lost investors and urgently need to “bounce back”. Therefore, Goldman Sachs is in a good position to take advantage of the situation. It is then investment bank shopping time.
The bank is already positioning itself as an investor in several cryptocurrency firms, including CertiK, TRM Labs, Elwood Technologies and Coin Metrics. Earlier this year, growing customer interest prompted the company to re-establish a cryptocurrency trading desk. To date, more than 70 people work for Goldman Sachs' digital assets team.
