The Goldman Sachs 2024 annual letter to shareholders devotes several words to crypto and distributed ledger technology. Blockchain, cryptocurrency and other digital assets are becoming more and more common, but risk is also important, according to the report.
The company also points out that it is exposed to distributed ledger technology only as a client facilitation, investment and third-party vendor.
The report also cites fears about market and cyber vulnerabilities related to these technologies. “While (a) the prevalence and scope of applications for distributed ledger technologies, cryptocurrencies and similar technologies is growing, the technology is early on and could be vulnerable to cyberattacks or have other inherent weaknesses,” the letter states.
Furthermore, the report states that adoption of digital assets and blockchain technology has created new competition in financial services, adapting the products to meet customers.
In 2024, the bank was planning to launch a tokenization project to help clients invest in financial assets such as real estate and money markets using public and private blockchains.
However, this does not mean that the company is making a major strategic pivot in the direction of cryptocurrency, the report explains.
In December 2024, CEO David Solomon suggested that Goldman Sachs would try to join Bitcoin and Ethereum Markets if the US regulatory environment changes, saying current regulations prohibit banks from trading in cryptocurrency.
He also repeated his characterization of Bitcoin as an “interesting speculative asset” this January. Furthermore, in an interview with CNBC on January 22nd, he said, “I don’t think Bitcoin is a threat to the US dollar.”
In late 2024, Goldman Sachs raised its Bitcoin Exchange Fund (ETF) holdings by 15% while maintaining a cautious attitude. Based on its latest 13F disclosure with the Securities and Exchange Commission, Goldman has increased its total Crypto ETF holdings to $20.55 billion from $744 million held in the fourth quarter.
The largest concentration in BlackRock’s iShares Bitcoin Trust (IBIT) was $1.2 billion, with banks holding Bitcoin ETFs totaling nearly $1.6 billion.