- The Bank of America recently released a report on the future of a token economy.
- In its report, the Bank of America expects most tokens to fade away except for some major networks.
- The financial giant recognized Avalanche for its TradFi-friendly approach, heralding it as the future of tokenization.
Avalanche (AVAX) has proven to be a standout performer this year, growing by an impressive 40%. The token’s remarkable performance has not only caught the attention of retail investors but also garnered recognition from established institutions in TradFi.
Among these heavy hitters, Bank of America, the oldest bank in the US, stands out as a staunch supporter of Avalanche, hailing its robust ecosystem and ‘TradFi-Friendly’ approach. In fact, the financial giant believes Avalanche is far more optimized and advanced than other chains in the industry.
Avalanche: The Future of Tokenization
The Bank of America recently published a comprehensive report on Global Digital Assets, shedding light on the future of a token economy and highlighting crucial aspects such as industry limitations and breakthroughs. In its report, the financial institution emphasized blockchain technology’s transformative potential in financial and non-financial markets over the next decade.
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The Bank of America analyzed cryptocurrency projects, including memecoins like SHIB, DOGE, PEPE, and more. The institute shared that it expects 99% of the 26,000 existing tokens to fade away in the following decade, except for major networks like Avalanche that are poised to facilitate TradFi’s entrance into the digital asset ecosystem.
Although the TradFi giant recognized other chains like Solana and Ethereum for their capabilities, it believed Avalanche was far more innovative and robust. In its report, The Bank of America claimed that while Solana was scalable, it wasn’t decentralized and secure. Similarly, while Ethereum is decentralized and secure, it’s not scalable.
The Bank of America highlighted that public blockchains like Avalanche, which enable the creation of private permissioned and customizable subnets, would benefit over the long term, emphasizing that the network’s TradFi-friendly approach positions it as the future of trading and value transfer.
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While recognizing the importance of the ‘decentralized-everything’ ethos, the bank notes that many existing solutions lack the required level of privacy for institutional use. In contrast, Avalanche offered a unique solution through its Evergreen blockchain subnets, providing faster finality and privacy crucial for TradFi’s use cases.
On the Flipside
- The Bank of America recently faced scrutiny for closing accounts that bought cryptocurrencies through Coinbase.
- At press time, Avalanche exchanged hands for $13.92, boasting a market cap of over $140 million.
Why This Matters
With TradFi’s interest in the crypto industry growing significantly, praise from established institutions like the Bank of America could likely lead to greater adoption and attention from institutions and investors alike.
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