As per the reports by various media outlets, including Financial Times, investment banking giant Goldman Sachs has plans to pursue an alliance with the crypto exchange platform FTX.
FTX reportedly joins hands with Goldman Sachs
As per the reports, Goldman Sachs CEO David Solomon has recently met with FTX founder Sam Bankman-Fried in a closed-door meeting to discuss various potential collaboration opportunities.
The critical areas of the conversation revolved around reducing regulatory compliance in the United States, and Goldman Sachs offered to assist them, particularly with the Commodity Futures Trading Commission. The Wall Street bank also volunteered to help with future investment rounds and regulatory assistance.
The most recent report emphasizes the growing partnership between traditional Wall Street behemoths and emerging crypto firms. Goldman Sachs has expressed interest in assisting FTX with its IPO. Bankman Fried, according to sources familiar with the situation, is actively seeking further private financing options.
After three funding rounds totaling hundreds of millions of dollars, FTX has amassed a valuation of $32 billion. The crypto firm closed a $400 million funding round near the end of January, which was also the smallest of the three funding rounds.
Like many other big names of Wall Street, Goldman Sachs has come a long way from its early days of Bitcoin bashing and is now eyeing a stake in FTX, which is already hiring software developers for its blockchain and gaming unit.
The news of a partnership between one of the leading Wall Street banks and one of the top crypto exchanges comes after FTX filed a request with the CFTC to restrict Wall Street banks from participating in the financial markets with its crypto futures products.
It would be interesting to see what the potential partnership would bring to the crypto community. Many are expecting the development of a unique product by the two in the coming future.