As the saying goes, every coin has two sides. For instance, bankruptcy could be a devastating blow for some people whilst for others it is a great opportunity to earn. Things went downhill for long-term clients and investors after the bankruptcy of FTX. However, Goldman Sachs saw a great opportunity to yield profits. The bank is planning to invest tens of millions of dollars in the crypto business.
Goldman Sachs is now on the hunt for bargaining crypto firms after the FTX fiasco. Notably, FTX was the world's fourth-largest cryptocurrency exchange. "We do see some really interesting opportunities, priced much more sensibly," Mathew McDermott, Goldman's head of digital assets, noted. "Customers have lost trust in some of the younger businesses in the sector that purely do crypto, and are looking for more trusted counterparties." Apparently, the bank sees an opportunity to pick up business. Besides, the demise of the crypto exchange dampened investor interest. It means that the bank can find lots of profitable offers at the price significantly below the market one.
Nevertheless, Goldman Sachs is well aware of the risks. "It's definitely set the market back in terms of sentiment, there's absolutely no doubt of that. But to reiterate, the underlying technology continues to perform," McDermott said. Earlier, Goldman Sachs CEO David Solomon made similar statements. On November 10 when the FTX drama was unfolding, he said that he viewed cryptocurrencies as "highly speculative". However, he points to great potential in the underlying technology as its infrastructure becomes more formalized.
