Bank of America forms group to study Bitcoin and other cryptocurrencies

The Bank of America (BofA) financial conglomerate formed a dedicated group to study cryptocurrencies. Bloomberg reports this, citing Candice Brauning, head of the bank’s Global Research department.

The team is led by Alkesh Shah, who is one of the founders of BofA’s Strategic Growth and Innovation Group. The unit reports directly to Michael Maras — head of Global Research for Fixed Income, Currencies and Commodities.

“Cryptocurrencies and digital assets represent one of the fastest-developing technology ecosystems. We have unique capabilities to secure leadership through our in-depth industry research, a leading global payments platform and blockchain expertise,” Brauning said in a memo.

In March 2021 Bank of America analysts criticized Bitcoin, saying it was useless as a store of value or a means of payment. In their view, the sole reason to hold the asset lay in its rising price.

In May, the financial conglomerate joined Paxos’ blockchain platform for securities settlement.

Increasingly, U.S. lenders are turning to the blockchain industry. Earlier, State Street, the second-oldest bank in America, announced the creation of a new unit focused on digital assets and the DeFi sector.

In June, it emerged that Goldman Sachs planned to launch trading of futures and options on Ethereum.

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