Goldman Sachs plans to buy up fallen in price crypto companies due to FTX collapse

Goldman Sachs, one of our largest investment banks, plans to spend tens of millions of dollars to buy crypto platforms. Or invest in them after the collapse of FTX exchange lowered prices in crypto industry. Crypto-Upvotes expert review

Goldman Sachs has launched a “hunt” for cryptocurrencies that have fallen in price since the collapse of FTX, Reuters reported. According to the publication, one of the world’s largest investment banks plans to spend tens of millions of dollars to buy or invest in cryptocurrencies.

The FTX collapse reinforced a need for more reliable, regulated cryptocurrency companies. And big banks see an opportunity to get into business, said Matthew McDermott, head of digital assets at Goldman Sachs. Without revealing details, he specified that the bank is now conducting due diligence on a number of different crypto firms.

The bank sees some really interesting opportunities at a much more reasonable price, McDermott said. FTX was a role model, he said. And its collapse backfired on the market “in terms of sentiment.” That said, McDermott stressed that the underlying blockchain technology continues to work.

Goldman Sachs has already invested in 11 digital asset companies. And it has partnered with MSCI and Coin Metrics to launch Datonomy, a digital asset classification service. According to McDermott, the investment bank is also developing its own private distributed ledger technology.

Goldman Sachs’ willingness to continue investing in the crypto sector in the face of shocks. Shows that bank sees promise in the industry. According to McDermott, Goldman is also looking at hiring opportunities as cryptocurrency companies cut staff.