Sam Bankman-Fried and David Solomon talked about Goldman Sachs’ possible advice to FTX in conversations with US regulators and a potential IPO.
With the suggestive title “Goldman Sachs sought to woo FTX in Caribbean meeting,” the Financial Times reported about the meeting between the FTX exchange CEO and the banking giant’s CEO somewhere on the paradisiacal Caribbean coast.
Although the matters under discussion by both directors are still veiled, many media outlets have suggested that the meeting could get described as historic and lead to future joint decisions of both entities.
According to a report led by Coindesk, FTX CEO Sam Bankman-Fried agreed on a meeting with Goldman Sachs CEO, David Solomon, in the Caribbean area to set on debate possible contributions between both entities.
According to people close to the situation, the Financial Times reported that the two CEOs discussed Goldman Sachs likely advising FTX, which got a value registered at $32 billion in January, on future funding rounds and leading a role in a possible initial public offering (IPO).
FTX Expects the Controller Response
For its part, FTX issued a proposal with the Commodity Futures Trading Commission in March, which would allow it to settle its derivatives clients’ trades. The regulator will give the proposal an informal hearing on May 23.
The two directors also argued about collaborating on the market making in crypto trading. Market making involves setting, purchasing, and selling prices for certain assets to make trading and liquidity easier.
CoinDesk’s discussions represent the increasing interest major financial institutions are taking in the digital asset industry after Goldman Sachs led the IPO of crypto exchange Coinbase last year.
In March, the bank made its first Bitcoin over-the-counter (OTC) operation. This information got revealed by various news outlets, including CNBC and CoinDesk. According to reports, Goldman issued a Bitcoin-linked tool called a ‘non-deliverable option’ alongside digital asset finance company Galaxy Digital. The device is a type of cash-settled cryptocurrency options trade.
An OTC trade, short for Over-The-Counter, refers to trading securities through a network of brokers rather than an exchange network. This over-the-counter transaction may include investment tools listed on the stock exchange or not; in this case, it is a cryptocurrency product.
The move represents a notable advance in the development of the cryptocurrency market and the participation of institutional investors, in part due to the nature of OTC operations and the fact that it represents a higher risk for the bank, as highlighted by CNBC. Galaxy co-chairman Damien Vanderwilt added that the banking giant’s move also denoted market maturity.
In April, the chairman stated that he was also ready to make these OTC trades with Ethereum. This information highlights how the bank got increasingly immersed in the crypto world.
By: Jenson Nuñez
