One of the largest Wall Street banks, Bank of America, has announced the launch of a study on digital assets in response to the growing interest in digital currencies on the part of investors. In addition, the research division released the Digital Asset Primer report, which called blockchain “the most exciting market” to have emerged in recent years.
The institutional interest in digital currencies has led many banks to adopt cryptocurrencies so as to meet the ever-changing needs of their customers. According to Bank of America, investments in digital assets and blockchain companies surpassed $17 billion (~£12.4 billion) in the first half of 2021 alone, up from $5.5 billion (~£4 billion) for all of 2020. In connection with this trend, the largest financial institution announced the launch of a study on digital assets.
Alkesh Shah, Global Strategy Leader for Cryptocurrencies and Digital Assets, commented on the decision: “Bitcoin is important, but the digital asset ecosystem is so much more. Our research aims to explore the implications across industries including finance, technology, supply chains, social media and gaming.”
Analysts at the second-largest US bank, Bank of America, are optimistic about the future of digital assets and blockchain. They claim to have had a close look at various aspects of the industry – popular cryptocurrencies, decentralised applications (dApps), the decentralised finance (DeFi) industry, stablecoins, and non-fungible tokens (NFT). The researchers emphasise that smart contract platforms such as Ethereum (ETH) have the potential to provide a wide range of services and functions. According to analysts, DeFi and NFT are the most innovative elements in the cryptocurrency industry, and the rise of NFT has come as a “surprise to everyone.”
“We believe the digital asset ecosystem is just getting started, despite rapid growth and market capitalisation at the level of some of the largest public companies in the world,” the report said.
In addition, Bank of America also identified potential obstacles to the further development of the cryptocurrency industry. The report details the threat of increased regulation, especially in light of recent comments from US Securities and Exchange Commission (SEC) chairman Gary Gensler.
Back in August, Bank of America published a report highlighting the benefits of El Salvador’s initiative to adopt Bitcoin as a quality legal tender. Could that have to do with its recently-growing interest in the crypto field? Only time will tell. Either way, the research is guaranteed to yield results worth global attention.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$62,831.21||-4.79%|
|ETHEREUM (ETHUSD) Ξ||$4,080.00||-2.01%|
|IMM. US (REIT)||$2,720.17||0.17%|
Receive the latest and best crypto news directly to your inbox
Receive a free hour of coaching with an expert! Just fill in this form and our expert will contact you within 48 hours.