Report: Goldman Sachs, FTX Meet to Discuss Collaborating

The chief executive of Goldman Sachs held a meeting with the founder of crypto exchange FTX last month to explore forging stronger ties between the two companies.

Goldman’s David Solomon and FTX founder Sam Bankman-Fried met in the Caribbean to discuss the bank advising the crypto firm on its dealings with U.S. regulators, according to a Thursday (April 21) report by the Financial Times, citing two sources close to the matter.

Read more: CFTC Lures Crypto Community with Rule Changes, Consultations

Last month, FTX, valued at $31 billion, filed a proposal with the Commodities Futures Trading Commission (CFTC) that would let it sell leveraged crypto derivatives to retail investors and settle their trades, with no need for intermediate brokers like Goldman.

As PYMNTS reported earlier this week, this comes as the CFTC is making overtures to the crypto community with the promise of a more crypto-friendly environment. The agency has said it is seeking feedback on the FTX proposal.

The meeting comes as Wall Street has apparently begun beefing up its digital asset operations, with banks like Goldman — as well as J.P.Morgan Chase and Morgan Stanley — creating crypto and blockchain-dedicated groups. J.P.Morgan has one of the largest, with a team of more than 200 employees staffing its Onyx division.

See also: Wall Street Embraces Crypto, but Not Quickly Enough for Some Employees

The sources told the Financial Times that Goldman also hopes to advise FTX on future funding rounds, with Solomon and Bankman-Fried discussing whether Goldman could play a role in a possible initial public offering of FTX.

However, one of the sources said Bankman-Fried was mostly looking at short-term private funding options and had not decided whether to take FTX public.

Also reportedly on the agenda during the meeting was a discussion of whether Goldman could collaborate with FTX on “market-making” in crypto trades, as the Wall Street bank steps up its digital asset market presence.

Solomon and Bankman-Fried also discussed Goldman providing traditional banking services to the FTX, the sources said.