Reuters reported on Tuesday that Goldman Sachs intends to invest or buy crypto companies for tens of millions of dollars.The FTX collapse didn’t level the crypto market, however it most certainly made it fundamentally less swarmed, which is only the manner in which Goldman likes it.
When it came to whether or not to get involved with cryptocurrencies, the largest banks on Wall Street have been playing their own version of Hamlet for almost a decade.The CEO of Goldman Sachs, David Solomon, told CNBC last year that, despite not being a huge Bitcoin fan.
FTX, of course, filed for bankruptcy after it was revealed that SBF allegedly used billions of FTX customer funds to bail out Alameda Research, his failing crypto trading business.The massive meltdown has ruined the value of cryptocurrencies, stoked Congress’s desire to enact stricter crypto regulations, and left a bad taste in the digital mouths of many investors.
However,
as the saying goes,Jake, put it aside.It is Goldman.The real opportunity for the lords of 200 West Street lies in populist panic:
Even though a few million dollars isn’t much for the old investment bank, which made $21.6 billion last year, it shows that Goldman Sachs is bullish on the cryptocurrency market.Mathew McDermott, head of digital assets, told Reuters that Goldman plans to invest in crypto opportunities that are “priced much more sensibly.”
Last week, Goldman launched a digital asset platform and issued a $104 million digital bond for the European Investment Bank. These companies provide services such as compliance, cryptocurrency data, and blockchain management.
McDermott stated, “FTX was a poster child in many parts of the ecosystem.”However, as previously stated, the fundamental technology continues to function.”
Solid as a Rock for a Pet?Goldman’s rivals do not share its positive crypto outlook.Noel Quin, CEO of HSBC, stated that he does not intend to venture into crypto.James Gorman, CEO of Morgan Stanley, stated that although crypto is highly speculative, it is not a fad.In an interview with CNBC, JP Morgan CEO Jamie Dimon spoke the least diplomatically, describing cryptocurrency as “a complete sideshow” and “as ridiculous an investment as pet rocks.”However, do those rocks belong to the blockchain?
