Goldman Sachs is reportedly looking at investing tens of millions of dollars in crypto companies following the collapse of the FTX exchange that has impacted the valuations and investor interest. FTX's downfall once again heightens the need for more regulated and trusted crypto currency players, and this is where big banks are looking at as an opportunity to pick up business, according to Mathew McDermott, Goldman's chief of digital assets.
The company is reportedly doing due diligence on many crypto firms. FTX had recently filed for Chapter 11 bankruptcy protection in the USA after its major collapse, stoking fears about contagion and amplifying calls towards effective crypto regulation.
Goldman Sachs has so far invested in more than 10 digital asset companies offering services like crypto currency data, compliance, and block chain management. The global crypto currency market has touched about $2.9 trillion (approximately Rs. 2,39,07,000 crore) by late 2021 based on the revelations by data site CoinMarketCap, but lost about $2 trillion (approximately Rs. 1,64,96,900 crore) in 2012 as central banks all over the world tightened credit and following corporate failures.
