Goldman Sachs Group, Inc., an investment banking firm, said it is aiming to invest funds in crypto businesses following the FTX debacle.
According to Reuters, the investment banking firm intends to inject tens of millions of dollars into crypto firms that are experiencing liquidity challenges.
Goldman Sachs intends to capitalize on the fact that not many investors and investment firms are prepared to engage in crypto businesses at the present due to the anxiety that still lingers in the blockchain industry following the collapse of the bankrupt FTX exchange.
Goldman’s head of digital assets, Mathew McDermott, gave comments that the blockchain ecosystem has continued to accomplish results despite the current liquidity strain and challenges it’s facing.
McDermott said the fallout of FTX has brought about increased trading volumes in Goldman Sachs because investors are now seeking to invest with firms that are regulated and well-capitalized.
The report also highlighted the relevance of Goldman Sachs in the crypto space. Goldman has made investments in 11 digital asset startups that offer services including compliance, Bitcoin analytics, and blockchain management.
In addition, the company is developing its own proprietary distributed ledger technology and has a staff of over 70 persons including a seven-person crypto options and derivatives trading desk.
The Effect of FTX Collapse on the Digital Industry
The rapid crash of FTX caused a lot of changes and concerns in the market, and some crypto enterprises had to suspend operations due to significantly invested money that is still locked with the FTX exchange.
For instance, Liquid Global, a Japanese crypto exchange announced on Twitter that it was pausing trading operations on its platform. The firm said it was following instructions given to them by S&C, who act on behalf of FTX Trading.
Dear Customers,
We have been instructed by S&C, who act for FTX Trading, to pause all forms of trading on our exchange because of the operation of the Chapter 11 process in the Delaware Courts.
— Liquid Global Official (@Liquid_Global) November 20, 2022
BlockFi likewise announced in November that it was suspending operations due to uncertainties regarding the viability of FTX. BlockFi noted that it was focusing on securing its customers’ money, hence the necessity to suspend operations.
Despite the negative effects of the FTX decline on the blockchain sector, some crypto investors and firms are optimistic that the market would eventually recover after the crypto winter.
LedgerX, a cryptocurrency platform, and FTX.US derivative firm have promised to provide bankrupt FTX with $175 million to spend for its continuing bankruptcy procedure so that the company can finally recover.
