Goldman Sachs executive Mathew McDermott said that their firm is already doing its due diligence on some crypto.
As crypto company valuations are affected by the recent FTX debacle, financial services firm Goldman Sachs is looking to swoop in and invest millions to purchase or invest in crypto firms while the prices are low.
Mathew McDermott, an executive at Goldman Sachs, reportedly said that big banks are seeing opportunities in the space as the FTX collapse highlighted a need for more regulation within the industry.
The executive added that the firm is currently seeing opportunities that are “priced more sensibly” and are already doing its due diligence on some crypto companies.
Commenting on the FTX debacle, McDermott also noted that in terms of sentiment, the market encountered setbacks. However, the traditional finance executive highlighted that though FTX became a “poster child” of the space, the underlying tech behind the industry “continues to perform.”
The FTX liquidation crisis and bankruptcy saga have turned the crypto space upside down since the beginning of November. The collapse of FTX continues to have a domino effect, affecting crypto-focused companies that have some exposure to the embattled firm. Because of this, institutional investors like Goldman are looking for opportunities to buy and invest at lower prices while the effects of FTX are lowering valuations.
Meanwhile, a digital bank based in the United Kingdom has banned crypto purchases for its users. Because of this, its customers will be unable to buy Bitcoin or other cryptos. Apart from this, users will also be unable to receive transfers from crypto exchange platforms.
While the FTX collapse set the space back in terms of interest, some institutional players are working to boost institutional adoption. On Dec. 6, crypto firm SEBA Bank partnered with financial services firm HashKey Group to speed up institutional adoption for crypto in Hong Kong and Switzerland.