Goldman Sachs plans to invest millions in the crypto industry
The cryptocurrency industry continues to attract more and more attention. No longer a novelty and a breakthrough, cryptocurrency is steadily penetrating the financial sector – and thus becoming more commonplace. After all, cryptocurrency no longer surprises anyone. And this means that in the near future, for many users, a crypto-wallet will become as commonplace as a bank account.
Not surprisingly, the crypto industry is being approached by seemingly more archaic players in the financial sector. Such as Goldman Sachs, the oldest banking house in the U.S., which is also one of the largest financial institutions in the country.
In early December 2022, Goldman Sachs CEO Matthew McDermott announced that the bank intends to buy several cryptocurrency companies. This decision was influenced by the scandal related to the FTX crypto exchange, which caused the capitalization of several cryptocurrency companies to plummet.
McDermott also said that the bank’s experts are now engaged in a comprehensive review of candidate companies for acquisition. According to him, despite the decline of interest in the crypto industry, many players in the financial sector began to pay more attention to it. The reason for that is the collapse of FTX.
As the cryptocurrency industry is quite a young segment in the financial market, it requires the intervention of strong and experienced leaders of the financial sector, who will be able to manage the internal processes more effectively. The management of Goldman Sachs believes the same. In addition, it is worth considering that initially, cryptocurrency positioned itself as a progressive segment, which often does not require strict managers and regulators.
However, players in the emerging sector have often suffered setbacks. Despite the desire to create a revolution in the financial environment, representatives of the crypto industry often repeated the mistakes of traditional institutions. As a result, those same “traditional institutions,” being more powerful, began to absorb young and progressive players.
An example of this is the recent collapse and bankruptcy of FTX, which was a shock to the entire industry. As the third largest crypto exchange and a competitor to Binance, FTX collapsed literally in a day when its customers withdrew $5 billion from the exchange.
Of course, this was preceded by events that caused FTX to plummet, which subsequently turned the cryptocurrency market upside down. Now the once-big players in the crypto industry are losing their positions one by one. Some experts compare it to the domino principle, where the first element to fall was FTX.
And now more experienced representatives of the financial market have entered the field, who intend to take advantage of the situation, turning it in their direction. An example of this is Goldman Sachs’ decision to invest in the crypto industry.