Digital Assets Gain Traction: Goldman Sachs Spotlights Crypto in Annual Report

CN
3 hours ago

Goldman Sachs referenced cryptocurrency and digital assets throughout its 2024 Form 10-K filing, acknowledging their growing prevalence while cautioning about risks. The firm stated, “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.”

The Goldman report highlighted exposure to crypto-related risks through client activities, investments in blockchain-focused companies, and the use of digital assets as collateral. “Market volatility of financial products using distributed ledger technology may increase these risks,” Goldman noted, urging clearer regulatory and protective frameworks.

Client demand for crypto exposure was also addressed. Goldman disclosed facilitating “clients’ activities involving financial products that use distributed ledger technology, such as blockchain, cryptocurrencies or other digital assets” and cited competition from firms offering crypto products it “cannot or may choose not to provide.”

The firm emphasized blockchain’s broader applications beyond crypto, calling it a tool to “reshape transactional efficiency.” However, it reiterated cybersecurity concerns, stating, “A failure to protect our computer systems…against cyber attacks…could impair our ability to conduct our businesses.”

Goldman also disclosed write-downs linked to digital asset initiatives, including a transition of its GM credit card program, which resulted in “a write-down of intangible assets.” The financial giant’s disclosures showcase the tension between adopting emerging technologies and navigating regulatory and operational uncertainties.

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