Goldman Sachs meets with FTX to discuss partnership

Goldman Sachs, one of Wall Street’s banking giants, appears to be targeting a partnership with crypto trading platform FTX. The development was announced by a Financial Times press release this morning. Goldman Sachs CEO David Solomon reportedly met with crypto billionaire and FTX founder Sam Bankman-Fried in the Caribbean last month.

According to the Financial Times, the two executives discussed a variety of topics, including Goldman Sachs acting as a cryptocurrency advisor to the future investment community. FTX recently held a funding round in January that raised $400 million and brought the company’s value to $32 billion.

The possibility for cryptocurrency trading businesses to launch initial public offerings (IPOs) with American Banks participating in the process was also mentioned. After a successful investment round in January, Sam Bankman-Fried discussed the possibility of bringing FTX to the public. He said the company would take steps if it deems appropriate at this time, but also mentioned the prospect of never having an IPO.

Additionally, David Solomon advised Goldman Sachs at its March meeting to assist the FTX in talks with US regulators. The Financial Times also said that top executives from both organizations are continuing to discuss a possible alliance to create a cryptocurrency market. However, since the publication of this news, there has been no official comment regarding the meeting between the two companies.

This meeting marks Goldman Sachs’ recent efforts in the cryptocurrency market

After a huge boost in cryptocurrency adoption in recent years, many traditional big banks around the world are trying to take a $2 trillion stake in the industry. To date, Goldman Sachs has been one of the largest investment banks in the United States with a rapidly growing interest and involvement in the cryptocurrency space. In 2020, a banking institution was chosen to lead the initial public offering (IPO) of crypto exchange giant Coinbase

Additionally, according to an August 2021 report by blockchain research firm Blockdata, Goldman Sachs has invested $204 million in six crypto companies, including crypto data transparency firm Coin Metrics, through a support group.

Recently, the investment bank was the first in America to offer over-the-counter (OTC) trading options for Bitcoin. And given its customers’ growing interest in the Ethereum network, the bank said it would implement the same system for the second most valuable cryptocurrency. A recent meeting with the CEO of FTX only underscores Goldman Sachs’ intention to increase its involvement in the crypto space.