Goldman Sachs Into Crypto World:
Mathew McDermott, a Goldman Sachs official, revealed that his company had already conducted due diligence on a few cryptocurrency companies.
The recent FTX fiasco has hurt the value of crypto companies. Thus financial services company Goldman Sachs is looking to pounce and invest millions to buy or invest in crypto companies while the prices are low.
In an interview with mainstream media source Reuters, Mathew McDermott, an executive at Goldman Sachs, reportedly stated that big banks see opportunities in the market since the FTX crash highlighted a need for additional regulation inside the business.
The executive continued by saying that the company was already conducting due diligence on a few cryptocurrency startups and was finding chances that were “priced more sensibly.”
Regarding the FTX fiasco, McDermott added that the market experienced setbacks in terms of mood. Although FTX became the industry’s “poster child,” the traditional finance executive emphasized that the industry’s core technology “continues to perform.”
FTX Affecting Crypto Business:
Since the beginning of November, the FTX liquidation issue and bankruptcy story have completely upended the cryptocurrency market. Companies focused on cryptocurrencies that have some exposure to troubled corporations are still impacted by the collapse of FTX. Therefore, due to FTX’s influence on valuations, institutional investors like Goldman are searching for chances to buy and invest at reduced prices.
In the meantime, a UK-based digital bank has forbidden its users from purchasing cryptocurrencies. As a result, its consumers won’t be able to purchase Bitcoin or other cryptocurrencies. In addition, users won’t be able to accept transfers from cryptocurrency exchange sites.
Despite a decline in interest following the FTX collapse, certain institutional players seek to increase institutional adoption. On December 6, cryptocurrency company SEBA Bank teamed up with financial services company HashKey Group to hasten the institutional adoption of cryptocurrency in Switzerland and Hong Kong.
Mathew McDermott argued that while the FTX collapse became a poster child for crypto, the technology behind crypto “continues to perform .