London Daily

Focus on the big picture.
Saturday, Jan 28, 2023

Goldman Sachs on hunt for bargain crypto firms after FTX fiasco

Goldman Sachs on hunt for bargain crypto firms after FTX fiasco

Goldman Sachs plans to spend tens of millions of dollars to buy or invest in crypto companies after the collapse of the FTX exchange hit valuations and dampened investor interest.
Goldman Sachs (GS.N) plans to spend tens of millions of dollars to buy or invest in crypto companies after the collapse of the FTX exchange hit valuations and dampened investor interest.

FTX's implosion has heightened the need for more trustworthy, regulated cryptocurrency players, and big banks see an opportunity to pick up business, Mathew McDermott, Goldman's head of digital assets, told Reuters.

Goldman is doing due diligence on a number of different crypto firms, he added, without giving details.

"We do see some really interesting opportunities, priced much more sensibly," McDermott said in an interview last month.

FTX filed for Chapter 11 bankruptcy protection in the United States on Nov. 11 after its dramatic collapse, sparking fears of contagion and amplifying calls for more crypto regulation.

"It's definitely set the market back in terms of sentiment, there's absolutely no doubt of that," McDermott said. "FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform."

While the amount Goldman may potentially invest is not large for the Wall Street giant, which earned $21.6 billion last year, its willingness to keep investing amid the sector shakeout shows it senses a long term opportunity.

Its CEO David Solomon told CNBC on Nov. 10, as the FTX drama was unfolding, that while he views cryptocurrencies as "highly speculative", he sees much potential in the underlying technology as its infrastructure becomes more formalized.

Rivals are more sceptical.

"I don't think it's a fad or going away, but I can't put an intrinsic value on it," Morgan Stanley (MS.N) CEO James Gorman said at the Reuters NEXT conference on Dec. 1.

HSBC (HSBA.L) CEO Noel Quinn, meanwhile, told a banking conference in London last week he has no plans to expand into crypto trading or investing for retail customers.

Goldman has invested in 11 digital asset companies that provide services such as compliance, cryptocurrency data and blockchain management.

McDermott, who competes in triathlons in his spare time, joined Goldman in 2005 and rose to run its digital assets business after serving as head of cross asset financing.

His team has grown to more than 70 people, including a seven-strong crypto options and derivatives trading desk.

Goldman Sachs has also together with MSCI and Coin Metrics launched data service datonomy, aimed at classifying digital assets based on how they are used.

The firm is also building its own private distributed ledger technology, McDermott said.

'TRUSTED' PLAYERS
The global cryptocurrency market peaked at $2.9 trillion in late 2021, according to data site CoinMarketCap, but has shed about $2 trillion this year as central banks tightened credit and a string of high-profile corporate failures hit. It last stood at $865 billion on Dec. 5.

The ripple effects from FTX's collapse have boosted Goldman's trading volumes, McDermott said, as investors sought to trade with regulated and well capitalized counterparties.

"What's increased is the number of financial institutions wanting to trade with us," he said. "I suspect a number of them traded with FTX, but I can't say that with cast iron certainty."

Goldman also sees recruitment opportunities as crypto and tech companies shed staff, McDermott said, although the bank is happy with the size of its team for now.

Others also see the crypto meltdown as a chance to build their businesses.

Britannia Financial Group is building its cryptocurrency-related services, its chief executive Mark Bruce told Reuters.

The London-based company aims to serve customers who are eager to diversify into digital currencies, but who have never done so before, Bruce said. It will also cater to investors who are very familiar with the assets, but have become nervous about storing funds at crypto exchanges since FTX's collapse.

Britannia is applying for more licenses to provide crypto services, such as doing deals for wealthy individuals, he said

"We have seen more client interest since the demise of FTX," he said. "Customers have lost trust in some of the younger businesses in the sector that purely do crypto, and are looking for more trusted counterparties."
Newsletter

Related Articles

London Daily
Close
0:00
0:00
China is opening up for foreign investors.
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Tesla reported record profits and record revenues for 2022
You Are So Beautiful
Germany confirms it will provide Ukraine with Leopard 2 tanks
Postmodern Jukebox European Tour Version
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Sattahip Motor Show 20
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
SONATE AU CLAIR DE LUNE - Moonlight sonata
Who’s Threatening Israeli Democracy?
A kiss to build a dream on
Federal Reserve Probes Goldman’s Consumer Business
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
China's first population drop in six decades
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Mean Blues
Israelis rally in three cities against Netanyahu legal reforms
La Chansonnette
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Pattaya Addicts
Tesla slashes prices globally by as much as 20 percent
Franz Liszt - Liebestraum - Love Dream
Japan prosecutors indict man for ex-PM Shinzo Abe murder
Dream a little dream of me
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
After Failing To Pay Office Rent, Twitter May Sell User Names
Unchained Melody sung like you've NEVER heard!
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
Dave Brubeck - Take Five
FIFA president questioned by prosecutors
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Britain's Sunak breaks silence and admits using private healthcare
Rondo Alla Turca
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Kiss of fire
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
Israel Cachao López - Guajira Clásica
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
TikTok CEO Plans to Meet European Union Regulators
Strauss - Radetzky March - Karajan
UK chaos: Hong Kong emigrants duped by false prospectus
La vie en rose
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Despacito (Piano Cover) - Peter Bence
Japan reportedly to give families 1 million yen per child to move out of Tokyo
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Orlando Cachaito Lopez Redencion
Will Canada ever become a real democracy?
Edith Piaf - NON, JE NE REGRETTE RIEN
Hong Kong property brokerages slash payrolls in choppy market
RADETZKY MARCH-2008-Wien, New Year Concert
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Only you (And you alone)
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Coinbase to Pay $100 Million in Settlement With New York Regulator
Strangers In The Night
FTX assets worth $3.5bn held by Bahamas securities regulator
Charles Aznavour - La Boheme
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Summer time
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Hong Kong to scrap almost all its Covid rules
Aux Champs Elysees
EU calls screening of travellers from China unjustified
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
US imposes Covid testing for visitors from China
La Mer (Beyond the Sea) – Avalon Jazz Band
Clashes erupt in central Paris after shooting at a Kurdish cultural center
She
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Radiohead - Creep
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Perhaps, Perhaps, Perhaps - Multi-Couples
Ronaldo's new contract...
Pentatonix Havana
The EU has outsourced a big chunk of its migration policy to the private sector
Paula Cole - Autumn Leaves
Prince William's godmother resigns honorary royal role after exposing her/their racism
Oscar Benton Bensonhurst Blues
British PM Rishi Sunak pledges further action on strikes to 'protect lives'
OH NANANA vs ABUSADAMENTE
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×