Goldman Sachs may purchase crypto businesses following FTX’s bankruptcy
Mathew McDermott, a Goldman Sachs executive, said that his company is already doing due diligence on a number of cryptocurrency companies.
As the current FTX crisis impacts crypto business values, the financial services giant Goldman Sachs intends to spend millions to acquire or invest in crypto companies while their prices are low.
Mathew McDermott, an executive at Goldman Sachs, reportedly said in an interview with the mainstream media source Reuters that large banks saw potential in the market as a result of the FTX crash highlighting the need for additional regulation within the business.
The CEO noted that the company is now observing chances that are “more reasonably priced” and is doing due diligence on a number of crypto startups.
McDermott stated in his analysis of the FTX catastrophe that the market’s attitude experienced setbacks. Nonetheless, the conventional finance executive emphasized that while FTX has become the “poster child” of the business, the technology powering the sector “continues to function.”
Since the beginning of November, the FTX liquidation crisis and bankruptcy story have flipped the crypto industry on its head. The failure of FTX continues to have a cascading effect on crypto-focused enterprises with exposure to troubled companies. As a result, institutional investors such as Goldman are searching for chances to purchase and invest at reduced prices, as the impacts of FTX reduce values.
A digital bank located in the United Kingdom has prohibited its customers from purchasing cryptocurrencies. Customers will no longer be able to purchase Bitcoin tickers down $16,836 or other cryptocurrencies. In addition, users won’t be able to accept transfers from cryptocurrency exchange services.
While the failure of FTX diminished interest in the market, certain institutional actors are attempting to increase institutional adoption. On December 6, the crypto business SEBA Bank joined with the financial services firm HashKey Group to accelerate the institutional adoption of cryptocurrencies in Hong Kong and Switzerland.