One of the biggest investment banks in the world, Goldman Sachs (GS), is considering investing tens of millions of dollars in cryptocurrency companies whose valuations have suffered as a result of the collapse of FTX, according to a report from Reuters on Tuesday.
On November 11, cryptocurrency exchange FTX filed for chapter 11 bankruptcy as a result of unsettling information regarding its finances and connections to trading firm Alameda Research.
The FTX debacle was the most recent setback for an industry that has recently experienced a number of high-profile bankruptcies due to weak markets. Other businesses have been affected, including the cryptocurrency lender BlockFi, which filed for bankruptcy the same month.
According to Mathew McDermott, head of digital assets at Goldman, “we definitely see some really fascinating opportunities, priced much more fairly.” According to McDermott, Goldman sees a growing need for dependable players in the market, which banks view as a chance.
