Goldman Sachs, the second-largest investment bank in the world, has finally acknowledged crypto in its annual shareholder letter, breaking a years-long silence on the industry.
The Wall Street giant, which has avoided Bitcoin and blockchain in its reports since at least 2017, admitted for the first time that crypto is now a force in finance on Friday.
“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,” Goldman said in its 2024 letter.
For years, Goldman Sachs treated crypto like it didn’t exist. From 2017 to 2023, there was no mention of Bitcoin, blockchain, or digital assets anywhere from the bank. But Bitcoin’s massive growth, which started January 2024 with the approval of spot Bitcoin ETFs, along with Trump’s pro-crypto policies, has changed the way Wall Street looks at the industry.
Goldman Sachs’ exact words on Friday were: “We also compete on the basis of the types of financial products and client experiences that we and our competitors offer. In some circumstances, our competitors may offer financial products that we do not offer and that our clients may prefer, including cryptocurrencies and other digital assets that we cannot or may choose not to provide.”
That statement alone proves Goldman Sachs knows it is losing business to crypto-friendly banks and investment firms. While it has dabbled in crypto trading, it has stayed cautious. In 2021, the bank launched a crypto trading desk, and in 2022, it introduced its Digital Asset Platform. It was also one of the few banks to experiment with Canton Network, a blockchain-based system designed to improve financial communication and record-keeping.
Despite this, the bank still considers crypto risky. “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,” Goldman Sachs said in its letter.
Goldman Sachs also warned that it faces risks when facilitating client activities in crypto markets, investing in blockchain companies, or accepting crypto as collateral.
Meanwhile, Goldman Sachs posted massive numbers in 2024, as its net revenue jumped by 16% year-over-year, reaching $53.5 billion. Earnings per share soared by 77% to $40.54. Return on equity (ROE) climbed by 500 basis points to 12.7%. The bank also improved its efficiency ratio by 11.5 percentage points, bringing it down to 63.1%, and total shareholder return surged by 52%, showing a strong year across the board.
Goldman Sachs operates two major business units: Global Banking & Markets (GBM) and Asset & Wealth Management (AWM).
GBM, which covers investment banking, fixed income, currencies, and equities, remains the bank’s financial backbone, and it helped clients navigate major M&A deals, secure financing for growth, and hedge against market volatility. The bank maintained its position as the top M&A advisor while expanding its fixed income and equities financing business, which grew at a 15% compounded annual rate since 2019.
On the AWM side, Goldman Sachs reported record-breaking numbers as client assets surged to $1.6 trillion, which is the 28th straight quarter of fee-based net inflows. The bank also expanded into alternative investments, raising over $70 billion in private credit and private equity funds.
To strengthen its private financing and alternative investment operations, Goldman Sachs launched the Capital Solutions Group in 2025, a unit that consolidates the bank’s financing, structuring, and risk management services, allowing it to take advantage of the growing private credit market.
Goldman Sachs is also betting big on AI-driven automation to cut costs and boost efficiency. In 2024, it introduced a three-year strategy to optimize its operations. Employees now have access to AI-powered coding tools and GS AI, a natural-language financial assistant designed to streamline decision-making.
This push for automation is part of the bank’s plan to reduce operational expenses while freeing up capital for future investments. Goldman Sachs expects AI-driven workflows to become fully integrated into daily operations by 2025.
“We have put ourselves on the path to generating mid-teens returns through the cycle,” said Goldman Sachs CEO David M. Solomon in the shareholder letter. “Financial market participants continue to recognize the competitiveness of the U.S. economy and the opportunities for sustained growth. But as we have seen in recent weeks, the environment can shift quickly. Global growth has been hampered by inflation, an escalation in potential tariffs, and the toll of geopolitical tensions and prolonged conflicts across multiple regions.”
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