Goldman Sachs is preparing to invest “tens of millions” in cryptocurrency startups.


In an interview with Mathew McDermott, Goldman Sachs Group’s global head of digital assets. Reuters reported that the company plans to invest tens of millions of dollars in cryptocurrency companies.

After the collapse of the FTX exchange hurt investor interest and valuations.Goldman’s head of digital assets said the company plans to buy or invest in crypto companies.

According to McDermott, big banks see the collapse of FTX as an opportunity to gain business.

McDermott added that Goldman Sachs is doing its due diligence on a number of different crypto firms without giving any more details.

In an interview, McDermott had said, “We do see some really interesting opportunities that are priced much more sensibly.”

“It has set the market back in terms of mood, there’s no doubt about that,” McDermott said. “FTX was the poster child for many parts of the ecosystem. But again, the underlying technology is still working.”

Even though Goldman may invest a small amount, the Wall Street giant made $21.6 billion in 2021. The fact that it is willing to keep investing despite the shakeup in the sector shows that it sees a long-term opportunity.

Goldman has put money into 11 companies that deal with digital assets and offer services like compliance, cryptocurrency data, and blockchain management.

Also Read: What Exactly Is Mutual Fund?

The story of FTX

Bitcoin trade After Binance pulled out of a deal to buy FTX, its founder,
Bankman-Fried was accused of sending customer deposits to Alameda Research, a trading firm that worked with FTX. About $6 billion was taken out of the exchange in just 72 hours.

FTX experienced a cryptocurrency bank run when customers tried to withdraw all their assets at once out of concern for the company and Alameda Research, a trading arm.

Since FTX’s collapse, its new management has said that the cryptocurrency exchange’s management was a “complete failure of corporate controls.”

After “learning and reviewing” what happened before his cryptocurrency exchange crashed, FTX’s founder tweeted that he would testify before the House Financial Services Committee.

The US House Financial Services Committee plans to hold a hearing in December to look into what happened to FTX. They want to hear from the companies and people involved, including FTX’s founder and CEO, Bankman-Fried.
Last week, Committee Chair Maxine Waters asked Bankman-Fried to come to the 13 December hearing.

“Once I finish learning and reviewing what happened,” said FTX’s founder and former CEO.

Bankman-Fried also said that he didn’t know if that would happen before December 13.

After his company went bankrupt, investors were shocked and creditors lost billions, he denied fraud in several interviews last week.

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