Leading global investment bank Goldman Sachs is planning to invest in or buy various crypto-focused companies whose valuations have taken a blow recently, Mathew McDermott, Goldman’s head of digital assets, told Reuters in an interview.

Big Banks See Opportunity to Pick up Businesses

According to the report, the New York-based financial institution intends to seize the opportunity presented by the current market crisis, which has caused the value of crypto firms to drop to new lows.

McDermott disclosed that the fall of FTX, which filed for bankruptcy last month, has increased the need for more trustworthy and regulated crypto enterprises in the industry, noting that big banks see an opportunity to pick up businesses.

“Goldman is doing due diligence on a number of different crypto firms. We do see some really interesting opportunities, priced much more sensibly,” McDermott said.

The financial institution, which generated $21.6 billion in profits last year, is looking to spend tens of millions on planned acquisitions and investments in the wounded firms.

While the bank refused to disclose the exact amount it intends to spend, the company’s desire to invest in the crypto space shows it sees potential in the emerging economy and its underlying technology.

Goldman Sachs has already invested in 11 virtual asset-related companies that provide services ranging from compliance, cryptocurrency data and blockchain management services.

FTX Was a Poster Child

McDermott also addressed the current FTX saga while speaking with the traditional media, noting that the collapse has sent the market backwards in terms of sentiments.

“It’s definitely set the market back in terms of sentiment, and there’s absolutely no doubt about that. FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform,” said McDermott.

The Wall Street powerhouse, alongside its executives, believes the industry continues to excel in core functionalities despite setbacks from malicious actors like Do Kwon, who led the TerraUST project, which failed earlier this year before the FTX debacle.

Last month, Goldman Sachs CEO David Solomon told CNBC the FTX drama was unfolding and that while he sees virtual assets as “highly speculative,” he finds more potential in the “underlying technology” as the infrastructure heads towards the mainstream.

~ By William A. Frederick ~