- Goldman Sachs plans on spending tens of millions on crypto company investments, Reuters reported.
- The banking giant has already invested in 11 digital asset firms.
- "We have seen more client interest since the demise of FTX," Goldman's head of digital assets said.
Goldman Sachs hasn't pulled back on its digital asset plans despite the catastrophic downfall of one of crypto's biggest players.
In fact, the Wall Street giant plans to spend "tens of millions" on investments in crypto companies even after FTX's implosion, Reuters reported on Tuesday.
FTX, the once $32 billion crypto empire that imploded after a "run on the bank", leaving the exchange bankrupt and thousands of customers with lost deposits, left a huge dent in the industry. Crypto's market cap has plunged more than two-thirds since its all-time high in November of 2021, according to Messari.
Disgraced founder Sam Bankman-Fried was reportedly misusing client funds, but maintains that it was an accounting mistake, despite reports indicating otherwise.
The firm's downfall not only took a toll on token prices, but pulled down company valuations. Goldman Sach's head of digital assets, Mathew McDermott, says this could be the right time to snatch up or invest in crypto companies at a discount.
"We do see some really interesting opportunities, priced much more sensibly," he told the outlet, adding that Goldman's doing its due diligence on a number of firms.
McDermott says client interest is still very high. The FTX fiasco has boosted Goldman's trading volumes and left investors wanting to trade with more regulated and trustworthy counterparties.
"What's increased is the number of financial institutions wanting to trade with us," the exec added. "I suspect a number of them traded with FTX, but I can't say that with cast iron certainty."
Goldman has invested in 11 crypto companies and is developing its own distributed ledger.
The firm's digital asset-focused team has more than 70 staff, which includes a crypto derivatives and options trading desks. Amid continued layoffs in crypto, Goldman sees the time as a recruitment opportunity to snatch up talent in the industry. McDermott told Reuters, however, that the bank is happy with the size of its staff for now.
"It's definitely set the market back in terms of sentiment, there's absolutely no doubt of that," McDermott added of FTX's downfall. "[They were] a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform."
Goldman Sachs did not immediately respond to Insider's request for comment.
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