Goldman Sachs’ Next Big Move is to Buy Crypto Firms
With the collapse of FTX, Goldman Sachs is reportedly looking to acquire global crypto firms
As the recent FTX debacle has impacted crypto company valuations, financial services firm Goldman Sachs is looking to swoop in and invest millions to purchase or invest in crypto firms while prices are low. Goldman Sachs executive Mathew McDermott reportedly stated that big banks see opportunities in the space as the FTX collapse highlighted the need for more regulation within the industry.
The firm is currently seeing opportunities that are “priced more sensibly” and is already conducting due diligence on some crypto companies. In addition to the FTX debacle, McDermott stated that the market experienced setbacks in terms of sentiment. However, the traditional finance executive emphasized that, while FTX became the industry’s “poster child,” the underlying technology “continues to perform.” Since the beginning of November, the FTX liquidation crisis and bankruptcy saga have turned the crypto space upside down.
The collapse of FTX has had a domino effect on crypto-focused companies that have some exposure to troubled firms. As a result, institutional investors such as Goldman Sachs are looking for opportunities to buy and invest at lower prices as the effects of FTX reduce valuations.
Meanwhile, a digital bank based in the United Kingdom has prohibited its customers from purchasing cryptocurrency.
As a result, its customers will be unable to purchase Bitcoin BTC ,824 or other cryptocurrencies.
Users will also be unable to receive transfers from cryptocurrency exchange platforms. While the FTX collapse reduced interest in the space, some institutional players are working to increase institutional adoption.
On December 6, crypto firm SEBA Bank announced a partnership with financial services firm HashKey Group to accelerate the institutional adoption of cryptocurrency in Hong Kong and Switzerland.