Bank of America began coverage of digital assets Monday, analyzing what it said was a revolutionary asset class that has now ballooned to $2.1 trillion.

Bank of America newly released report:”Digital Assets Primer: Only the first inning

“Digital assets are transforming the way in which markets, businesses and central banks operate,” said Candace Browning, head of BofA Global Research.

 

The primer provides an investment framework for the digital asset landscape, looking through a variety of lenses: tokens that act like operating systems; applications powered by smart contracts; stablecoins pegged to fiat currencies; central bank digital currencies that could replace money; and non-fungible tokens that connect creators and fans in a different way.

 

Digital assets represent a $2 trillion+ market value with 200 million+ users, and have the potential to transform every industry by improving efficiency and reducing friction across transactions. Hundreds of companies are forming within this new ecosystem, creating a new asset class.

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“It’s difficult to overstate how transformative blockchain technology, digital assets, and the thousands of decentralized apps that have yet to be created could potentially be,” according to the report.
For example, innovations like decentralized applications, stablecoins pegged to fiat currencies, central bank digital currencies, and non-fungible tokens will significantly spur the growth of the space, which should see increased institutional participation and mainstream adoption.
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