One of Wallstreet’s largest banks, Bank of America, has launched its own digital asset research as it looks to scale its crypto offerings. The bank has formed a specialist unit to keep up with institutional demand for crypto over the summer of 2021.
The unit is led by Alkesh Shah, head of Global cryptocurrency and Digital Asset strategy at the firm. Shah has said, “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.”
In a press release, Bank of America said that digital assets represent a $2 trillion market value with 200 million users. The bank has shared its views that digital assets have the “potential to transform every industry by improving efficiency and reducing friction across transactions. “
The bank has said that it sees crypto and digital assets more broadly as providing enticing investment opportunities through a “variety of lenses.” These ” lenses” include tokens that act like operating systems, applications powered by smart contracts, stable coins, central bank digital currencies and NFTs.
Head of Bank of America Global Research, Candace Browning, said, “Digital assets are transforming the way in which markets, businesses and central banks operate.”
Stocks covered by Bank of America
Bank of America has listed stocks that it already covers, that have exposure to digital assets. Payment providers PayPal and Coinbase are at the top of the list followed closely by Signature Bank, JPMorgan Chase, Morgan Stanley and SVB Financial.
There is also a number of stocks that make the list because of their exposure to crypto mining including Exelon, NRG Energy and Vistra Corp.
Bank of America analysts said, “we believe crypto-based assets could form an entirely new asset class.” Adding, This creates a new generation of companies for digital assets trading, offerings and new applications across industries. And yet we’re still in the early innings.”
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