Bank of America, the second-largest bank in the US, seems to have updated its attitude towards the blockchain-driven economy, taking a more positive view of crypto, NFTs and DeFi.
The bank's Global Research Digital Asset Primer reveals optimism about the adoption of cryptocurrencies and decentralized apps, adding non-fungible tokens and stablecoins to its list of digital assets that should not be ignored.
“Bitcoin is important with a market value of ~$900bn, but the digital asset ecosystem is so much more”, a report by the Global Research division said.
Blockchain's significance will increase over the years, the bank said, with the technology used for frictionless financial transactions but also quotidian tasks such as unlocking one's phone.
The bank is confident in the future success of digital assets, citing the $17bn worth of venture capital currently locked up in digital assets and various blockchain firms.
This number reflects on investment activity over the first half of 2021 only and marks three-fold growth from 2020 when investments were only $5.5bn across the board.
NFTs and DeFi seems to be equally piquing the bank's interest, with the solutions described as “most innovative” in the report.
Bank of America admitted in the report that the rapid adoption of these technologies had been a “surprise for us all”.
“Simple images like a black background with a few words of text make us concerned that there are heightened risks in this segment that need to be fully understood before NFTs can achieve true adoption”, the bank wrote, confident that the future of these digital assets is bright. Naturally, the bank acknowledges future challenges stemming from regulators, such as the US Securities and Exchange Commission, which has been focused on ensuring consumer safety.