Floor Goldman Sachs Bank spending tens of millions of dollars buying or investing in cryptocurrency companies after the collapse of cryptocurrency exchange FTX weakened valuations and investor interest.
Matthew McDermott, head of digital assets at Goldman, told Reuters that the collapse of FTX has increased the need for reputable and regulated companies in the cryptocurrency space, adding that big banks saw an opportunity to capture this business.
He added that Goldman conducts technical due diligence assessments for a number of crypto firms but did not provide details.
“We see some really interesting opportunities at more reasonable price points,” McDermott said in an interview last month.
FTX filed for Chapter 11 bankruptcy protection from creditors in the United States on Nov. 11 after its dramatic collapse, heightening fears of contagion and fueling calls for increased regulation of cryptocurrency trading.
While the amount Goldman can invest isn’t large for the Wall Street giant, which posted $21.6 billion in profits last year, its willingness to continue investing despite industry setbacks indicates that sees long-term opportunities.
