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The financial services giant Goldman Sachs is telling shareholders that its competitors are now offering crypto products and services that the bank doesn’t.
In its 2024 Annual Report, Goldman Sachs says in some circumstances, rival firms are offering products that clients may prefer, such as specific digital assets, which Goldman cannot or choose not to provide.
According to the bank, the competition could help create better experiences for clients.
Goldman Sachs goes on to say that blockchain and artificial intelligence (AI)-based technologies have enhanced rivalries within the banking industry.
“The growth of electronic trading and the introduction of new products and technologies, including trading and distributed ledger technologies, such as cryptocurrencies, and AI technologies, has increased competition.”
The financial services titan also says it is “exposed to risks” through various activities involving digital assets due to the potential of cyber security incidents.
“Additionally, although the prevalence and scope of applications of distributed ledger technology, cryptocurrency and similar technologies is growing, the technology is nascent and may be vulnerable to cyber-attacks or have other inherent weaknesses.
We are exposed to risks, and may become exposed to additional risks, related to distributed ledger technology, including through our facilitation of clients’ activities involving financial products that use distributed ledger technology, such as blockchain, cryptocurrencies or other digital assets, our investments in companies that seek to develop platforms based on distributed ledger technology, the use of distributed ledger technology by third-party vendors, clients, counterparties, clearinghouses and other financial intermediaries, and the receipt of cryptocurrencies or other digital assets as collateral.”
