Bank of America said in a report released on Thursday that despite the market correction and bankruptcies experienced last year, the crypto ecosystem continues to develop.
Institutional demand is driving the emergence of institutional-grade products, and Nasdaq is among traditional finance (TradFi) firms offering more services in the digital asset space.
Bank of America stated that institutional investors will continue to participate and focus on the long-term disruption of blockchain technology.
The report added that the US SEC’s enhanced protection rules may limit the ability of registered investment advisors to provide custody for client tokens on most crypto-native exchanges, which will further promote TradFi institutions to enter the field. TradFi institutions remain the preferred counterparty, the bank said.