Goldman Sachs is Planning to Invest in Crypto Companies

The demise of FTX increased the desire for reputable and safe companies to enter the cryptocurrency industry. As a result, we are watching as banks and financial firms swoop into the crypto market. Goldman Sachs is the most recent bank to join the fray. Goldman Sachs plans to invest hundreds of millions of dollars in cryptocurrency firms, according to Reuters.

The market is downgrading the value of cryptocurrencies since FTX's collapse. In addition, investor interest has never been lower. But this is the ideal time for large banks to clean up the mess. Now, Goldman Sach is declaring its plans to purchase or invest in bitcoin companies. According to Matthew McDermott, head of Goldman's Digital Asset, "We absolutely see some incredibly exciting prospects that are priced a lot more fairly." on Tuesday. He also added:

"FTX unquestionably damaged the sentiment of the market. There is absolutely no room for debate. FTX was a role model for the ecosystem in many ways. The fundamental technique is still useful, though."

Millions of dollars in investment appear little in the grand scheme of things for the Wall Street Giant. 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 highly speculative, cryptocurrencies had a lot of promise.

However, several other institutions 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 investing for everyday consumers. In the meanwhile, Goldman Sachs invested in 11 digital assets that provide services including analytics, compliance, and blockchain management.

What is the future direction of blockchain and cryptocurrencies?