UnusualWhales

Per Reuters

After the crash of FTX, Goldman Sachs is ready to jump in and invest as the bank plans to do due diligence on several crypto firms.

Goldman's head of digital assets, Matthew McDermott, highlighted the need for regulated crypto players. Despite the cautious approach, the investment bank plans to spend tens of millions investing in crypto companies.

Goldman Sachs has investments in 11 digital companies around the fields of crypto data, blockchain management, and compliance.

After SBF's crypto platform filed for Chapter 11 bankruptcy, fear, uncertainty, and doubt (FUD) started to spread as the call for crypto regulations grew. Banks are seeing the potential in regulated crypto players after FTX's collapse showed the importance of trustworthiness.  

McDermott: “We do see some really interesting opportunities, priced much more sensibly,”

McDermott also described that the underlying technology is still performing despite FTX's crash setting back market sentiment. Goldman's head of digital assets described SBF's now-bankrupt crypto platform as once being the "poster child" for the ecosystem.

Before the Nov 11 collapse of FTX, Goldman Sachs' CEO David Solomon shared his sentiments on cryptocurrencies with CNBC. Per the CEO, he sees it as "highly speculative," but despite that, he notices the potential for the underlying technology.

Solomon believes that the potential lies when cryptocurrency's infrastructure "becomes more formalized." The head of digital assets said private distribution ledger tech is already at work within Goldman Sachs.

Solomon: "I think the technology is super interesting... to allow us to be able to move money with less friction"

James Gorman, CEO of Morgan Stanly, shares slightly different views saying it isn't a fad that will just disappear. Despite this, the CEO struggles to place a determining value on these digital assets.

Gorman: “I don’t think it’s a fad or going away, but I can’t put an intrinsic value on it,”

While Goldman Sachs seems in the green and Morgan Stanly remains somewhere in the middle, Noel Quinn, the CEO of HSBC, is in the red with no interest in expanding their investments into cryptocurrencies.

Resources:

Reuters

CNBC

See flow at unusualwhales.com/flow.