Goldman Sachs reportedly seeking closer ties with FTX crypto exchange

Quick Take

  • The CEOs of both companies reportedly met in March to discuss possible avenues of collaboration.
  • Goldman’s CEO is said to have discussed the Wall Street bank advising FTX on a number of issues.

Goldman Sachs is reportedly looking to help crypto exchange giant FTX navigate its way through US regulations, among other concerns, according to a report by Financial Times on Thursday.

People familiar with the matter cited by the publication said Goldman CEO David Solomon and FTX chief Sam Bankman-Fried (SBF) held discussions in March about possible avenues of collaboration.

The two were said to have talked about ways in which Goldman Sachs could advise FTX on the latter’s plan to offer retail trading of crypto derivatives. The exchange’s US arm filed for approval with the Commodity Futures Trading Commission (CFTC) in March for margin trading of crypto derivatives.

FTX’s crypto derivates application was the subject of a Congressional hearing with the CFTC chairman in March.

According to the Financial Times, Solomon proposed that Goldman advise FTX in a dialogue with the CFTC. Other topics discussed included plans for future funding rounds and a possible initial public offering for FTX.

FTX raised $400 million in a Series C funding round in January that valued the company at $32 billion. SBF is reportedly talking with private investors about another possible funding round.

Solomon’s reported overtures to SBF are in keeping with Goldman’s expanding footprint in the crypto space. This trend is a departure from the largely anti-crypto posturing of major players on Wall Street in previous years.

Goldman already offers over-the-counter (OTC) crypto options trading and was part of a new funding round for blockchain security outfit Certik earlier in April.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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