Bank of America Initiates Digital Assets Coverage
Posted by Colin Lambert. Last updated: October 4, 2021
Bank of America has launched its digital asset research initiative with a new report “Digital Assets Primer: Only the First Inning” led by Alkesh Shah, head of global cryptocurrency and digital asset strategy.
Last month, Standard Chartered also initiated digital assets research and Bank of America says the industry represents a $2 trillion-plus market value with 200 million-plus users. It says digital assets have the potential to transform every industry by improving efficiency and reducing friction across transactions, adding hundreds of companies are forming within this new ecosystem, creating a new asset class. “Bitcoin is important, but the digital asset ecosystem is so much more,” says Shah. “Our research aims to explore the implications across industries including finance, technology, supply chains, social media and gaming.”
The primer provides an investment framework for the digital asset landscape, looking through a variety of lenses: tokens that act like operating systems; applications powered by smart contracts; stablecoins pegged to fiat currencies; central bank digital currencies that could replace money; and non-fungible tokens that connect creators and fans in a different way.
“Digital assets are transforming the way in which markets, businesses and central banks operate,” says Candace Browning, head of BofA global research. “Bank of America offers a market-leading global payments platform and blockchain expertise, and the addition of digital asset research further strengthens the depth and breadth of our offerings for investors.”