Goldman Sachs Reinforces Commitment to Crypto with Additional Team Members

In January 2023, Goldman Sachs announced that it would be cutting 3,200 staff as part of a cost-cutting exercise. While this news may be concerning, the multinational investment bank remains committed to expanding its presence in the cryptocurrency space.

Over the past few years, Goldman Sachs has been actively exploring the crypto market, investing in crypto-related companies, and offering its clients exposure to cryptocurrencies through various services.

As cryptocurrencies continue to grow in popularity and mainstream acceptance, other major financial institutions are sure to follow suit and ramp up their efforts.

Despite the recent staff cuts, Goldman Sachs is doubling down on its commitment to the crypto market. Mathew McDermott, Goldman Sachs’ global head of digital assets, recently stated that the bank is actively seeking to hire new talent in the crypto space.

He believes that cryptocurrencies are an essential part of the future of finance, and the bank is dedicated to staying at the forefront of this rapidly evolving market.

McDermott revealed this information to Bloomberg in Hong Kong last week, noting that the digital assets team has grown significantly over the past few years. As of 2020, the team had only four members, but it has since grown to a 70-member capacity.

This news comes amidst positive expectations from confident crypto analysts who believe that crypto firms’ adoption of digital currencies will significantly increase in 2023. Additionally, the popularity of decentralized finance (DeFi) is expected to rise as a substitute for traditional financial institutions.

Goldman Sachs’s plans to strengthen its crypto team surfaced during the staff cutdown of more than 3,000 employees in January 2023. This is the largest layoff from the company since the 2008-2009 global financial crisis, which impacted the regular operation of specific organizations.

According to sources close to the case, the massive layoff in January has affected junior, senior, and middle-level executives committed to the company’s banking units and core trading.

However, in a 2023 presentation during the company’s Investor Day in New York, Golden Sachs CFO Denis Coleman mentioned that the company would postpone replacing its departing staff to plan and prioritize the following hiring process properly.