Goldman Sachs is planning on invest in crypto companies

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Due to the demise of FTX, the crypto market is now in need of reliable and trustworthy companies. Therefore, we see banks and investment firms dipping their hands into this sizzling pie. Goldman Sachs is the newest big name to join the fun. A million dollars will reportedly be invested in cryptocurrency businesses by Goldman Sachs, according to Reuters.

Goldman Sachs Plans to Invest in Crypto Firms

The market is downgrading the value of cryptocurrencies since FTX's bankruptcy. In addition, investor interest has never been lower. But now is the ideal time for large banks to clean up the mess. Now, Goldman Sach is declaring its plans to buy or invest in bitcoin companies. According to Matthew McDermott, head of Goldman's Digital Asset, “We certainly see some extremely fascinating chances that are priced much more rationally,”. He also added that:

“FTX has undoubtedly harmed the market’s sentiment. There is simply no question about that. In many aspects of the ecosystem, FTX was a poster child. However, the core technology remains effective.”

Millions of dollars in investment appear insignificant in the grand scheme of things for the Wall Street Behemoth. Remember that they earned $21.6 billion in 2021? However, it shows that it has a strong long-term outlook on crypto by investing resources in the space despite the market upheaval. Goldman's CEO David Solomon told CNBC during the FTX crisis that, although being highly speculative, cryptocurrencies had a lot of potential.

Doubt from Competitors

However, several of the other banks continue to have reservations about blockchain technology and cryptocurrencies. James Gorman, the CEO of Morgan Stanley, said that he does not believe that blockchain technology is a fad or that it will become obsolete. He was unable to estimate the technology's monetary value, though.

Noel Quinn, CEO of HSBC, also discussed the importance of cryptocurrencies. He stated that the business has no plans to expand into cryptocurrency trading or investment for everyday consumers. In the meantime, Goldman Sachs invested in 11 digital assets that provide services including analytics, compliance, and blockchain management.

Final Thoughts

We're back in the action now! A Wall Street titan investing in blockchain and cryptocurrencies is always a positive sign. A surefire approach to increase investor trust is to have major banks invest in cryptocurrencies. Additionally, this action might signify a turning point for the cryptocurrency market, allowing it to advance. Maybe it's time to look into how blockchain can improve our lives as well.