- Investment banking company plans to increase its reach in crypto
- Goldman plans to recruit crypto workers that were laid off
- Goldman believes the crypto space has potential
Goldman Sachs, a leading investment banking company and management firm that is known to provide a wide range of financial services, is in the works to spend millions of dollars to buy and invest in crypto companies since the collapse of the FTX and how much it damaged the value of cryptocurrency and reduced the interests of investors in the crypto market.
The FTX crash increased the need for regulated crypto companies that are easy to trust, which opened the need for big banks to pick up the cryptocurrency business and go into the blockchain market. The head of Digital assets of Goldman Sachs announced that FTX’s implosion led to their interest in the crypto market.
Goldman Sachs sees exciting opportunities with the correct values and prices. The company, however, plans to go the valid route of acquiring the companies or investing in them. FTX’s filing for chapter 11 bankruptcy set the market back and drastically impacted the trust people had for the market, as the company was viewed with the eyes of respect. While FTX did a lot of damage, it doesn’t take away from how well the industry has done for itself.
Goldman Sachs is investing millions of dollars, but the amount they are pouring in is not even a fraction of what the investment giant that earned $21.6bn last year is worth. Even amidst the chaos, their interest in the crypto sector shows a chance for long-term growth and opportunities.
The CEO of Goldman claimed that he sees cryptocurrency as a highly speculative asset. He believes there is potential in the industry as its infrastructure develops and becomes more formalized. While other rival investment companies have stated the opposite, Goldman Sachs plans to go on with their investment. HSBC has said that they have no intention to go into crypto trading or even invest in it.
Goldman, however, has already taken the first step by investing in 11 digital assets companies that are in the business of providing services like cryptocurrency data, compliance, and blockchain management.
The head of the investment company’s digital asset team McDermott joined the company in 2005. It went further to run the business of its digital assets after it served as head of cross-assets financing. He has grown his team to several 70 people, which includes a group of seven crypto options and derivatives trading desks.
Goldman Sachs has also been involved in launching data service autonomy that is aimed at classifying digital assets based on how they are made use of.
Goldman Sachs investment bank is also building its private distributed ledger technology, which is why their venture in investing in crypto is a perfectly timed one, especially coming in time with the collapse of FTX, which saw an increase in client interests as people are vying to go back to their routes and leaving younger businesses which are only aimed at crypto, to go into more accountable counterparts.
The investment company also believes this is the perfect time to hire people as more companies in the crypto space are laying off a large percentage of their workers. More people would be willing to fill open job positions from this plan. However, for now, Goldman is content with its current team.
Goldman plans to satisfy customers who wish to diversify into digital currencies without prior knowledge or experience. They will also cater to investors who have knowledge of the crypto market but are reluctant about venturing into the space, especially with the collapse of FTX. Goldman plans to shine a beacon of light into crypto by using its position and influence in the investment market.
Goldman Sachs investing in the crypto industry would be a significant boost as it would help push the economy forward and open it to a new demographic while also bringing back in the people that left out of fear but who also have ties and trust in Goldman. It could also give the crypto market a bit of stability that it lost from the bearish market and the FTX bankruptcy, along with other crypto companies that filed for bankruptcy.
This would be the perfect time for a company like Goldman Sachs, which has a long-standing in the investment space and has the attention of investors and everyday people, there would be more attention for it, while also aiding in healing the cryptocurrency ecosystem that has taken several hits these past few months.