Major US investment bank Goldman Sachs plans to expand its crypto division. This is apparent from statements from Mathew McDermott, the head of digital assets at Goldman Sachs. Currently, Goldman Sachs’ crypto division employs about 70 people, down from just four in 2020. The statements are striking as the bank recently cut 3,200 jobs, the largest round of layoffs since the 2009 financial crisis.
The global head of Goldman Sachs’ digital-asset team signaled the division is open to bolstering staff strength, a contrast with the deep layoffs in the crypto sector overall https://t.co/HzyV8JDYGI
— Bloomberg Crypto (@crypto) March 1, 2023
What is Goldman Sachs?
Goldman Sachs is one of the largest investment banks in the United States and was founded in 1869. In that respect, the bank has long been at the top of the financial world. Goldman Sachs operates in various areas of the financial industry, including investment banking, wealth management, mergers, acquisitions and many more.
In short, we can say that Goldman Sachs is generally involved in the largest and most important financial transactions in the world. In that regard, it is a good thing that the investment bank apparently believes in the future of crypto.
The bank is also often in the news because of controversies, such as allegations of fraudulent practices and conflicts of interest. Despite these criticisms, the bank remains an influential player in the financial world and plays an important role in the development of the global economy.
Goldman Sachs and crypto
Incidentally, the investment bank is not completely new to the world of blockchain and Bitcoin. In December of last year, McDermott also indicated that Goldman Sachs is considering buying up several crypto companies. According to him, this only required the valuations of these companies to become more reasonable.
According to him, the valuations of these companies are still much too high at the moment. The collapse of FTX could, he says, cause many companies to lose part of their valuation. It remains to be seen whether that actually happened. Since the fall of FTX, bitcoin reached the low point of the bear market, but the price is now a lot higher again.
