• According to reports, Goldman Sachs and FTX are discussing a possible collaboration

  • According to the article, Goldman Sachs has committed to assist FTX in mitigating the detrimental effects of US legislation.

    Goldman Sachs (NYSE: GS) is reportedly considering a partnership with cryptocurrency exchange FTX. According to the Financial Times, the CEOs of the two companies, Sam Bankman-Fried of FTX and David Solomon of Goldman Sachs, met behind closed doors to discuss a possible partnership. The closed-door meeting took place in the Caribbean in March. According to those acquainted with the situation, the main topic was regulatory worries in the United States. The latest agreement between FTX and Goldman demonstrates the growing collaboration between banking service providers and cryptocurrency exchanges. Coinbase’s IPO in 2021 was led by Goldman.

    CEOs of Goldman Sachs and FTX Meet

    According to the article, Goldman Sachs has committed to assist FTX in mitigating the detrimental effects of US legislation. Goldman will also assist with regulatory compliance with the Commodity Futures Trading Commission (CFTC). Furthermore, Goldman’s CEO stated that the firm would provide financial services to FTX. The executives also addressed the exchange’s future public launch, which Goldman is eager to assist with. According to the story, the CEOs discussed Goldman Sachs advising FTX on its potential public debut. The Wall Street financial behemoth is also willing to assist the exchange with future bonding efforts.

    Last July, Bankman-Fried hinted that FTX would acquire Goldman Sachs. In a statement, he stated that acquiring the bank is not “out of the question.” The CEO also stated that acquiring Goldman will be accelerated if the exchange’s value continues to rise.

    In addition, Bankman-Fried said that he is unsure about an initial public offering (IPO). At the time, the FTX CEO stated that the existing market conditions prevented him from taking the exchange public. According to insiders, FTX is actively pursuing further private finance. Over the course of three investment rounds, the crypto exchange startup has gathered millions of dollars. Following its most recent investment round in January, FTX achieved a $32 billion valuation. The Series C round, which included participation from Paradigm, Tiger Global, and others, closed at $400 million. 

    The new finances, according to the company, will allow it to grow its global presence. The amounts raised in the most recent financing round are also the smallest of the three.

    FTX Submits Proposal to CFTC

    FTX filed a petition with the CFTC in March to allow it to directly settle trades for its derivatives customers. On May 23rd, the commission will hold a hearing on the proposal.

    Goldman Sachs is up 0.57 percent to $343 in pre-market trade. The stock performance of the corporation has been a mix of excellent and terrible. Over the last year, GS has gained about 2%, and it has gained 1.62 percent in the last month. The banking behemoth has also risen by roughly 6% in the last five days. Goldman has lost 10.85 percent since the beginning of the year, and another 1.80 percent in the last three months.

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