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- Bank of America predicts 99% of existing cryptocurrency tokens will vanish within the next decade.
- Tokenization is expected to reshape finance, leaving only tokens with real value and institutional backing.
In a recent development, Bank of America says almost all cryptocurrencies in circulation today may not survive the next decade. The bank’s research estimates that 99% of the more than 26,000 tokens currently active will vanish as the market moves toward regulated digital assets that offer clear value and real-world use.
Tokenization Could Change the Market
Reports described today’s financial systems as old and inefficient, relying on networks that have been in place for decades. These systems often cannot connect easily with one another. Bank of America said tokenization could solve many of these problems.
Essentially, tokenization is the process of creating a digital version of a real asset that can be traded in a secure and regulated environment. The bank draws a clear line between tokenized assets and most crypto in use today.
According to the update, many existing tokens were created mainly for speculation or testing and offer little practical benefit. Tokenized assets, on the other hand, are tied to actual value and designed to work within permissioned, compliant systems.
According to the report, tokenization will become a larger part of both financial and non-financial industries over the next 15 years. As it expands, the number of cryptocurrency tokens is expected to drop sharply, leaving only a small group with a lasting presence.
In related news, CNF reported earlier that the United States Securities and Exchange Commission Chairman Paul Atkins called for the need to develop a tokenized securities ecosystem as the movement of assets on-chain is inevitable.
What Will Help Tokens Survive
It is worth noting that the BofA report does not list specific tokens likely to remain, but points to qualities that will matter most. Tokens with strong institutional support, clear practical uses, and adoption by a large number of people are seen as more likely to endure. Without these, most tokens will lose relevance and fade from the market.
This view shows a wider pattern among banks and large companies. Many are looking at how blockchain technology can be used to make systems faster and more efficient. However, they are careful about the risks linked to decentralized and lightly regulated assets.
Bank of America’s position suggests that the cryptocurrency market of the future will be smaller but more focused. Tokens that deliver proven benefits and can operate in regulated systems will stand out, while the majority will disappear.
For now, the message from the bank is simple: survival will depend on building something that works, lasts, and serves a clear purpose in the real economy.
Meanwhile, to strengthen tokenization in the United States, CNF highlighted in our previous news brief that Chainlink Labs encourages the market to fully embrace blockchain technology. This would help capture a significant share of the financial market.
