Collapse of FTX Tempting Goldman To Hunt Crypto Firms

Mathew McDermott, Goldman Sachs’ head of digital assets, suggested on Tuesday that the bank ponders to invest in, or even buy crypto firms whose prices significantly deteriorated in the wake of the FTX collapse in deals that would cost tens of millions of dollars. Goldman Sachs’s plan comes after the famous collapse hit valuations and dampened investor interest.

FTX’s collapse triggered the need for more trustworthy, regulated cryptocurrency players, and big banks see an opportunity to pick up business according to McDermott. The bank has already started assessing a number of different crypto firms.

FTX filed for Chapter 11 bankruptcy protection in the United States on Nov. 11 after its dramatic collapse, sparking fears of contagion and amplifying calls for more crypto regulation.