According to a Tuesday report published by Reuters, Goldman Sachs, one of the biggest American banks, plans to spend a significant amount of money on struggling crypto companies, potentially capitalizing on the crypt crash.
As the cryptocurrency faces a major crisis of confidence following the FTX downfall, legacy financial players see an opportunity, Mathew McDermott, head of digital assets at Goldman.
McDermott has opined that the FTX drama was a major setback for the industry. On the bright side, the underlying technology continues to operate properly.
Last month, the banking behemoth also introduced a cryptocurrency classification system that was developed in partnership with CoinMetrics.
In May, Goldman CEO David Solomon praised blockchain’s potential to cause digital disruption in the financial infrastructure. However, he said that the bank couldn’t do a lot with crypto due to regulatory roadblocks.
Goldman’s top competitors are seemingly less optimistic about cryptocurrencies. Last week, Morgan Stanley CEO James Gorman opined that crypto didn’t have intrinsic value, but stressed that the industry was likely not going away despite the dramatic crash.
Meanwhile, JPMorgan Chase CEO Jamie Dimon maintains his dismissive attitude toward cryptocurrencies, recently comparing them to pet rocks.
Goldman’s potential bet on bargain crypto firms may backfire. As reported by U.Today, BlackRock CEO Larry Fink recently predicted that the lion’s share of existing crypto firms would cease to exist.