17.03.2025 11:31
The world's second-largest investment bank, Goldman Sachs, officially recognized the importance of cryptocurrencies for the first time in its annual shareholder letter. The major bank emphasized that cryptocurrencies are part of the increasing competition in financial markets, while also highlighting the potential risks associated with these technologies.
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The attitude of Goldman Sachs towards cryptocurrencies has begun to change. For the first time since 2017, the bank used the terms "cryptocurrency" and "Blockchain" in its shareholder letter, making room for digital assets in its competitive strategy following the support for cryptocurrencies from the Trump administration and the growing influence of Bitcoin. This shift in the cryptocurrency strategies of Wall Street's giant institutions marks an important turning point for the sector.
The Investment Bank is Warming Up to Blockchain Technology
Goldman Sachs mentioning cryptocurrencies in its 2024 shareholder letter has created a stir in the financial world. The letter stated, "the growth of e-commerce and the introduction of new products, including cryptocurrencies, have increased competition."
The investment bank highlighted that "in some cases, our competitors may offer financial products that we do not provide," drawing attention to the digital asset products offered by its rivals. This statement indicates that the institution feels competitive pressure in the digital asset space.
Goldman Sachs established a cryptocurrency desk in 2021 and a Digital Asset Platform in 2022. The bank was among the institutions that tested the Blockchain-based communication system, Canton Network, in the last three years. This development shows that traditional financial institutions are increasingly interested in Blockchain technology after a decade of experience.
The letter also emphasized the risks of new technologies. The firm warned that "despite the increasing applications of distributed ledger technology, cryptocurrencies, and similar technologies, the technology is new and may be vulnerable to cyberattacks."
Goldman Sachs CEO David Solomon previously described Blockchain technology as "super interesting." Solomon referred to Bitcoin as "a speculative investment" and stated that he "has not seen a real use case." In the fourth quarter of 2024, Goldman Sachs significantly increased its investments in BlackRock's IBIT and Fidelity's FBTC ETFs.
These developments are seen as a concrete indication that the traditional financial world can no longer ignore the cryptocurrency ecosystem.
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