Share this article
TradFi Remains the Counterparty of Choice for Institutional Crypto Investors: Bank of America
Crypto company collapses create a void in the ecosystem that trusted and experienced traditional finance firms may look to fill, the report said.
By Will Canny
Updated May 9, 2023, 4:12 a.m. Published Apr 14, 2023, 10:44 a.m.
The crypto ecosystem is continuing to develop, despite the market correction and bankruptcies witnessed last year, Bank of America (BAC) said in a note Thursday, following a report that exchange operator Nasdaq (NDAQ) plans to launch a digital asset custody service by the end of this quarter.
Institutional demand is driving the offering of institutional-grade products, with Nasdaq just the latest traditional finance, or TradFi, firm to offer more services in the digital assets space, the report said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bank of America says institutional investors remain engaged and focused on the “disruptive nature of blockchain technology over the longer term.”
The bank says it expects crypto company collapses to slow institutional trading as they “reevaluate counterparty risk and ensure that custody, exchange and broker-dealers are separate entities or siloed.”
However, these collapses create a void in the crypto ecosystem that “trusted and experienced TradFi firms offering institutional-grade products may fill,” analysts Alkesh Shah and Andrew Moss wrote.
The U.S. Securities and Exchange Commission’s (SEC) Enhanced Safeguarding Rules could limit the ability of registered investment advisers to provide custody for clients’ tokens on most crypto-native exchanges, which will further drive TradFi institutions into the space, the report added.
“Our view is that TradFi institutions remain the counterparty of choice,” the bank said.
Read more: Tokenization of Real-World Assets a Key Driver of Digital Asset Adoption: Bank of America
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Nasdaq, home of Coinbase, Strategy stocks, seeks 23-hour trading amid investor demand
Crypto's 24/7 trading has influenced investor expectations, with Nasdaq acknowledging that many of its clients are already active overnight.
What to know:
- Nasdaq plans to expand stock and exchange-traded product trading to 23 hours a day, five days a week, according to a filing.
- The move follows similar initiatives by the New York Stock Exchange and reflects growing global demand for extended market access.
- Always-on cryptocurrency trading has influenced investor expectations, with Nasdaq acknowledging that many of its clients are already active overnight.
