Concerns about a so-called ‘crypto winter’ have not frozen investor interest in the sector, Bank of America (BAC) said in a report Tuesday, following its Web3 & Digital Assets Day Conference, which took place last week.

Conversations with some of the 160 clients who attended the event made clear that “blockchain technology and the digital asset ecosystem are here to stay,” the report said, and the bank remains optimistic for mainstream digital asset adoption.

The bank said some speakers pointed out that the most innovative projects were built during previous downturns in the market, and that recent declines, whilst painful, are “likely healthy for the ecosystem’s development over the long term.”

“Client engagement continues to grow and focus remains on the rapid development and disruptive nature of blockchain technology, despite falling token prices and headlines suggesting the ecosystem’s demise has arrived,” the note said.

Participants speaking at the event said regulatory clarity is critical for institutional and corporate engagement, which could ultimately speed up real-world use and result in mainstream adoption as consumer confidence in the sector increases, the note added.

It was a consensus view that institutional investors and corporates are preparing to enter the digital assets ecosystem, but remain on the sidelines until a comprehensive regulatory framework is established, the report said.

BofA says that digital asset products may attract the first billion users, but the “next billion will likely require improved bridges between the fiat and crypto ecosystems and the creation of a crypto-native ecosystem, in which individuals are unaware of the applications that leverage blockchain technology.”

The bank reiterates its view that blockchain technology delivers the most significant evolution of software since the internet, adding that the emerging ecosystem of Web3 applications has the “potential to transform every industry.”


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