Following the FTX collapse, an executive of banking giant Goldman Sachs said that their firm is already doing its due diligence on some crypto firms and is looking to purchase or invest in them while the prices are low.
The recent FTX fiasco has a negative impact on the value of crypto companies, thus financial services business Goldman Sachs is seeking to pounce and spend millions to buy or invest in crypto companies while the prices are low.
Mathew McDermott, an executive at Goldman Sachs, allegedly said that large banks are seeing potential in the market since the FTX crash highlighted a need for additional regulation inside the business in an interview with mainstream media source Reuters.
The CEO continued by saying that the company was already doing due diligence on a few cryptocurrency startups and that it was finding chances that were “priced more rationally” at the moment.
Regarding the FTX fiasco, McDermott said that the market had losses in terms of mood. Although FTX became the industry’s “poster child,” the conventional finance executive emphasized that the industry’s core technology “continues to function.”
Since the beginning of November, the FTX liquidation issue and bankruptcy story have completely upended the cryptocurrency market. Companies focusing on cryptocurrencies that have some exposure to troubled corporations are still being impacted by the collapse of FTX.
Therefore, as a result of FTX’s influence on valuations, institutional investors like Goldman are searching for chances to acquire and invest at reduced prices.
In the meanwhile, a UK-based digital bank has forbidden its members 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 after the FTX crash, certain institutional actors are seeking 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.
