Goldman Sachs (GS), which is one of the world’s largest investment banks, made the explanation for spending millions of dollars on crypto firms after the decrease in the interest of the investors this is all because of the blackout of the crypto exchange company.
The implosion of FTX has increased the demand for more dependable and regulated cryptocurrency players and big banks to witness a chance to pick up business. The information is given by Mathew McDermott, Goldman’s head of digital assets, to Reuters.
He also added that he is doing due diligence on various crypto entities without giving more details.
As per McDermott, “there are less interesting opportunities that are priced much more sensibly.”
On November 11, the second largest cryptocurrency exchange, FTX, collapsed in the United States. This gave birth to the bankrupt situation, and the case has been filed for chapter 11 bankruptcy protection, flashing fears of contagion and intensifying calls for more crypto regulation.
Without a doubt, the market is all set in terms of making the settlement. The underlying technology continues to perform to reiterate.
The amount of possible investment by Goldman may be less significant for the Wall Street Giant, which earned $21.6 billion. Still, even after the crypto market shakeout, its willingness to keep investing reflects its long-term potential in crypto.
CEO David Solomon told CNBC that the drama of FTX was spreading. He considers cryptocurrencies as “highly speculative. There are several possibilities in the underlying technology as the infrastructure becomes more formalized.
James Gorman, CEO of Morgan Stanley, said he does not think the plan is a fad or going away.
Noel Quinn, the CEO of HSBC, has no intention to build up into crypto trading or to invest in retail consumers.
Morgan has already funded 11 digital asset companies that assist in compliance, cryptocurrency data, and management of blockchain technology.
Its team of McDermott has grown to more than 70 people, including seven robust crypto options and derivatives trading desks.
Goldman Sachs has partnered with Coin Metrics and MSCI to launch data service autonomy as an object to classify digital assets based on their usage.
McDermott revealed that the firm is building its own private distributed ledger technology.
