- 12 December 2022
- Posted by: Cryptovalues
- Category: World News
Goldman Sachs intends to invest in the crypto sector and has decided to allocate tens of millions of dollars for this purpose.
The decision, undoubtedly strong for the period, also stems from seeing its trading volumes increase after the collapse, as investors look for more reliable trading partners.
In the wake of the FTX collapse, it will be possible to make investments in the sector at a steep discount compared to the previous period, and this represents a certain appeal that a large Bank cannot despise, based of course on what the growth potential of the sector turns out to be.
The confirmation comes from Managing Director Mathew McDermott who said that the investment bank is conducting due diligence on an unspecified number of cryptocurrency companies. McDermott noted that many of these “attractive opportunities” have been significantly downsized following the collapse of FTX.
McDermott also admitted that increased investor interest is another reason why Goldman Sachs has made these investments in 11 digital asset companies, with services ranging from compliance, to cryptocurrency data, to blockchain management.
For this reason, a team with more than 70 dedicated people has been organized , as well as a seven-person cryptocurrency options and derivatives trading desk, which has recently developed options on Ethereum that are OTC-settled and cash-settled.
Although McDermott currently sees the crypto staff as adequately sized, he also sees recruitment opportunities amid the turmoil.
Recall that last May Goldman Sachs allowed a loan with bitcoin collateral, a first for this corporate entity, allowing the borrowing client to use bitcoin as collateral to obtain a cash loan.
Considering the difficult time in crypto markets, one can only applaud the investment bank’s initiative that sees a bright future for the industry.