Categories: Bitcoin Business

J.P. Morgan sees three potential long-term stock winners from blockchain

Click here to view original web page at
Source: Akamai

Despite blockchain's corporate buzz this year, the technology can be tricky to get exposure to as an investor, unless you're buying bitcoin.

To give clients some less controversial options, J.P. Morgan named three public companies who are potential long-term winners in the emerging technology.

The firm predicted software companies will use blockchain in a similar way to how many currently claim the benefit of machine learning and artificial intelligence. But there are few that J.P. Morgan says will create "material incremental growth opportunities" from the technology.

"Investors should be looking to identify where the opportunity to replace a middleman is the biggest, or where trust is needed where none exists, or what companies are the best positioned to offer blockchain as a service," J.P. Morgan software equity research analyst Sterling Auty said in a note to clients Thursday.

J.P. Morgan's bets for that disruption are "middleman displacement opportunities" and "Blockchain as a Service," which the firm calls "BaaS." In the bank's coverage at least three names fit that criteria — Akamai, DocuSign and Ellie Mae.

Cloud service provider Akamai, rated "overweight" by J.P. Morgan, could leverage the "BaaS" approach.

"Rather than building from scratch we see customers looking to utilize a vendor like Akamai that offers its Blockchain capabilities as a service," Auty said. "While there are a number of companies that have blockchain technology, IBM as one example, we believe the sizeable Akamai network is an inherent advantage in running a distributed ledger in blockchain."

In this case, J.P. Morgan is advocating for use of closed, permissioned blockchain, also known as just "private." Bitcoin by comparison, is the biggest "public" blockchain meaning anyone can join or participate in that network. Its "distributed ledger," where transactions are recorded can also be seen by just about anyone.

DocuSign already offers the ability to connect a blockchain network to its systems. The company, which J.P. Morgan also rated "overweight," could leverage both private and public blockchains.

"DocuSign wants to be the platform to enable the entire contracting process in a digital manner. Over time we could see much of the platform being based on blockchain, basically shifting its
centralized security model for the distributed model of blockchain," J.P. Morgan's Auty said.

Auty called real estate the most "obvious" use case for blockchain technology. Ellie Mae, which J.P. Morgan has an "underweight" rating on, stands to benefit as a result.

"Utilizing blockchain to manage the entire mortgage process could bring trust among parties and use of smart contracts could help automate various tasks (inspection, income/employment verification," Auty said.

To give clients some less controversial […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

The Entire Bitcoin Dynamic is Changed by the Lightning Network, Says Samson Mow

Samson Mow, BTCC Exchange’s Founder and Magical Crypto Friends and Blockstream’s present CSO, recently shared his views on Bitcoin’s status… Read More

2 hours ago

Bitcoin History Part 15: Silk Road Is Born

Silk Road launched in February 2011 as the darknet’s first bitcoin-based marketplace. Within four months, it would be the darknet’s… Read More

2 hours ago

Sunday Digest: Bitcoin Price, Pantomime Season, More Craig Wright Lies

Share Tweet Send Share This week, US President, Donald J Trump, decided that he would like to buy Greenland, thereby… Read More

2 hours ago

Bitcoin Twitter Is Daydreaming About a Hong Kong Bank Run

Crypto-fever dreamers cheered as Hong Kong protesters suggested organizing a bank run, but apparently rioters didn't flock to bitcoin. |… Read More

2 hours ago

World Bank issues second tranche of Ethereum blockchain kangaroo bond

'Kangaroo bond' is the name given to a foreign bond, issued in the Australian market and denominated in Australian dollars.… Read More

2 hours ago

What the Theft of a BBC Reporter’s $30,000 in Ethereum Shows About Cryptocurrency

Last week, BBC contributor Monty Mumford lost $30,000 of Ethereum . This came after a logical thought process: invest in… Read More

2 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More