Bank of America is the second largest bank in the United States. And it has just set up a research team entirely dedicated to Bitcoin and crypto. Is traditional finance finally ready to move on, offering bitcoin (BTC) to its customers?
The “old” finance industry on the move
Bank of America (BOA) has just announced the establishment of its new team dedicated to cryptocurrency research, perhaps marking a decisive rapprochement between traditional Wall Street finance and investors’ frenzy for digital assets.
“The [crypto] industry is currently valued at about $2 trillion, inflows into new ETPs/ETFs at $50 billion, and venture capitalists are investing significantly in crypto/blockchain companies.”
Candace Browning, Head of Global Research at Bank of America
Although there has been little communication about it, BOA has been flirting with blockchain technology for years. In 2018, it had already filed a patent application for a limited-authority blockchain, available only by invitation. This is one of many such patents filed by the company. In 2019, it had already started hiring several blockchain specialist positions.
A bank behind the times?
In fact, BOA has been slower than rival “mega banks” – such as JPMorgan and Goldman Sachs – which have recently given their clients the opportunity to invest in Bitcoin and cryptos. Also in the U.S. is Morgan Stanley, which wants everyone to buy Bitcoin (BTC), with a plan to cash in on billions of dollars.
BOA’s new crypto research team believes that things could “finally change” at the institution. However, the new department will be led by finance veterans, not actual blockchain experts.
Alkesh Shah, BOA’s current Head of Data Strategy and Innovation, will be heading the department. He will report to Michael Maras, head of Fixed Income, Global Currencies and Commodities Research. When you know how intense and rich the crypto ecosystem is and how quickly it is changing, we wish the new team well in integrating the dynamics of cryptos into their schedule.
Banks seem to be increasingly looking to expand into the world of crypto-currencies. Change is slow and there are still many barriers to entry, but many are already offering wealth management products or services that include – finally – digital assets. Some banks, including JP Morgan and Goldman Sachs, have even started offering crypto-futures trading. Even Morgan Stanley seems addicted to blockchain and would see itself tokenizing the world.
