LONDON, Dec 6 (Reuters) – Following the stock market crash, investor interest in the cryptocurrency space has dwindled, leading to reduced valuations. In the wake of the FTX implosion, Goldman Sachs (GS.N.) is now seeking to take advantage of the situation.
Mathew McDermott, Goldman’s head of digital assets, told Reuters that the firm is looking for bargain opportunities in the crypto sector. This is in response to the need for more regulated and trusted players in the cryptocurrency market.
“We see some really interesting opportunities, priced much more sensibly,” McDermott said during an interview. Goldman Sachs is doing its due diligence on multiple crypto businesses.
FTX filed for Chapter 11 bankruptcy protection in the United States on the 11th of November. This has heightened worries of contagion and amplified the calls for more stringent cryptocurrency regulation. McDermott commented that “It’s definitely pushed the market back in terms of sentiment, there’s absolutely no question about that. FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to work.”
Despite the low potential for returns, Wall Street giant Goldman Sachs, which recorded $21.6 billion in profits last fiscal year, is still willing to invest in the space during these trying times. David Solomon, Goldman’s CEO, spoke to CNBC on the 10th of November, calling cryptocurrencies “highly speculative” but also noting that as technology infrastructure matures, great potential lies ahead.
Rival banking executives, however, are more skeptical. Morgan Stanley (MS.N) CEO James Gorman stated that he couldn’t give cryptocurrencies intrinsic value. Noel Quinn, CEO of HSBC, said at a bank conference in London last week that he had no intention of trading or investing in cryptocurrencies for retail clients.
Goldman Sachs, on the other hand, has invested in 11 digital asset service providers, including compliance and management firms. McDermott joined Goldman Sachs in 2005 as head of cross asset finance and was later promoted to lead the firm’s digital assets business. In his spare time, McDermott is an avid triathlete.
Its Team It presently has more than 70 employees and a seven-member derivatives and crypto options trading team.
Goldman Sachs Together with MSCI also has Coin MetricsThe Data service datonomy was created by and is for classifying digital assets based on their use.
McDermott stated that McDermott’s firm is also constructing its own distributed ledger technology.
TRUSTED PARTIES
As per the website, the world’s largest cryptocurrency exchange was $2.9 trillion at its peak in 2021. CoinMarketIn this year’s financial crises, Cap lost $2 trillion. Corporate Celebrities It Last The figure was $865 billion in the previous year December 5.
The ripple effect of the FTX crashes has enhanced Goldman’s McDermott stated that trading volumes are a result of investors wanting to trade solely with well-funded, regulated counterparts.
“What has increased is the number of financial institutions that want to trade with us,” He said. “I suspect that several of them dealt with FTX, but I can’t say that with absolute certainty.”
Goldman McDermott stated that McDermott believes there is potential to employ as tech and crypto companies layoff staff. ButFor the moment, however, the bank is content with the size and composition of its staff.
Others The Entrepreneurs have the chance to expand their businesses if cryptocurrencies collapse.
Britannia Financial Group is broadening out its cryptocurrency-related services, its chief executive Mark Bruce Telled Reuters.
The LondonThe The company is headquartered in London It aims to help customers who are interested in diversifying into digital currencies, but have never done so before. Bruce said. It This Investors who are familiar with assets will be able to use the service.
