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The integration of digital assets has been noted by the BofA research team as a disruptor in the current traditional markets.
Bank of America Corp (NYSE: BAC) has launched its digital asset research, with the recent publication of a report entitled “Digital Assets Primer: Only the first inning.” According to the company, the new research team was led by Alkesh Shah, head of Global Cryptocurrency and Digital Asset Strategy.
Digital assets, particularly cryptocurrencies have surged tremendously in value over the past decade and now represent a $2 trillion market. The BofA researchers noted the digital currency industry is now “too large to ignore,” highlighting that it has covered the major players in the ecosystem from banks to payment service providers, and mining companies amongst others in its research coverage.
“Bitcoin is important,” said Shah, “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.”
The Bank of America digital assets primer provides an investment framework for the digital asset landscape, with a focus on operating systems, smart contracts, central bank digital currencies with the potentials to replace money; and non-fungible tokens that connect creators and fans in a different way amongst others.
The integration of digital assets has been noted by the BofA research team as a disruptor in the current traditional markets.
“Digital assets are transforming the way in which markets, businesses, and central banks operate,” said 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.”
Bank of America Research: Recognizing the Industry Movers
Per the details shared by the Bank of America research team, South Dakota diversified energy company, Black Hills Corp (NYSE: BKH) is the firm whose utility comes off with the “most advanced digital asset regulatory strategy that could potentially be earnings accretive.” The team also highlighted other firms including Exelon Corporation (NASDAQ: EXC), NRG Energy Inc (NYSE: NRG), Public Services Enterprise Group Inc (NYSE: PEG), and Vistra Corp (NYSE: VST) as being very important to the industry because of their exposure to crypto mining.
The institutional adoption of digital currencies over the past year has been a major talking point for how mature the nascent industry is. From the observed trend over the years, these institutions are notably not just investing the funds in buying Bitcoin to be featured on their balance sheets, rather they are more engrafted in offering such services that bring about the mainstream adoption of the digital currencies. Firms like Paypal Holdings Inc (NASDAQ: PYPL), and Square Inc (NYSE: SQ) are offering payment services involving digital currencies, a provision that opens the nascent asset class to millions of their users.
According to the BofA research team, there were other highlights of outfits with unique exposure to the digital assets industry including but not limited to DraftKings Inc (NASDAQ: DKNG), the only profiled gambling company which operates an NFT marketplace in partnership with Tom Brady’s Autograph.