Bank of America: 99% of Crypto Assets Will Disappear

Crypto researcher SMQKE shared a notable excerpt from a Bank of America Global Research report that presents a stark projection for the future of most crypto assets. The report states that approximately 99% of the over 26,000 tokens currently in existence are expected to disappear over the next ten years.

This prediction was drawn from a broader analysis of the evolving financial infrastructure and the role that tokenization is expected to play in reshaping both traditional finance and blockchain applications.

The Context: Tokenization and Infrastructure Transformation

The report emphasizes that today’s financial systems are still largely reliant on centralized, outdated infrastructure that lacks interoperability. It highlights the limitations this creates for efficiency, innovation, and capital allocation.

According to BofA Global Research, despite early advances in asset digitization, such as Nasdaq’s move to electronic trading in the 1970s, many financial institutions continue to rely on systems that are over two decades old. The report anticipates a significant transformation over the next five to fifteen years as tokenization becomes more prominent in both financial and non-financial sectors.

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Tokenization, as defined by the report, involves creating digital programmable versions of real-world assets that can be exchanged and tracked using blockchain or other distributed ledger technologies.

Bank of America views this as a long-term infrastructure evolution, comparable to the adoption timelines of innovations like radio and television. The institution projects that both public and private markets will increasingly adopt tokenized frameworks over time.

Not All Tokens Are Equally Necessary

One of the central distinctions made in the research is between “crypto” tokens and tokenized traditional assets. The report stresses that tokenized assets should not be conflated with cryptocurrency.

Instead, it points out that distributed ledger systems can be used in a permissioned, private manner without relying on public networks or crypto incentives. These systems can facilitate secure, regulated interactions for financial institutions while minimizing reliance on intermediaries.

Crypto tokens, in contrast, are necessary for public blockchain ecosystems. They reward participants for validating transactions and maintaining the network’s integrity. However, the report downplays the long-term utility of most existing crypto tokens, describing many as unnecessary or redundant.

The prediction that 99% of crypto assets will disappear is grounded in the view that most tokens do not provide lasting utility and exist primarily for speculation or short-term experimentation.

BofA’s Role and the Broader Implications

The report from BofA Global Research appears to support a vision where tokenization becomes embedded into regulated, permissioned systems, particularly through the use of distributed ledgers that do not rely on public cryptocurrencies.

This reflects a broader trend among financial institutions that aim to harness blockchain efficiency without embracing the volatility and decentralized nature of crypto markets.

If BofA’s forecast is accurate, it implies a consolidation of utility across a small number of projects with strong fundamentals, while the majority of current tokens may ultimately fade from relevance or disappear entirely.

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