Goldman Sachs, the fifth-largest bank in the United States, has announced that it intends to take advantage of the reduced valuation of crypto firms that occurred due to the crash of the exchange FTX. It plans to invest tens of millions of dollars into buying shares or entire companies.
In the past, it has participated in several investment rounds of companies whose product is built on blockchain technologies. These included CertiK, TRM Labs, Elwood Technologies and Coin Metrics.
Although many financial institutions are still suspicious of the cryptocurrency sector, Goldman Sachs is instead increasing its investments here. In early 2022, they re-opened their cryptocurrency trading desk and created several cryptocurrency-backed products. Their digital assets division already counts more than 70 people.
Their crypto-related products could now be enticing to all types of investors, not least because the collapse of the second largest crypto exchange, FTX, has reduced confidence in the crypto native companies. Therefore, the number of clients looking to buy cryptocurrencies from established banks is increasing.
Thus, it seems that one of the winners of the ongoing crypto winter will be companies from the world of traditional finance. They can benefit from their extensive experience with the trading cycles of assets such as equities and commodities. That’s why they are considering purchases just in time for the market downturn.