Blockchain is hot, but if you are a mainstream investor the technology may not be easy for you to understand or invest in. In a recent note, a J.P. Morgan analyst provided investors with three nonblockchain public companies that he expects will benefit from blockchain.
“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 advised in his note.
Those companies, he said, are “middleman displacement opportunities” and “blockchain as a service” firms: cloud service provider Akamai; DocuSign, which offers the ability to connect a blockchain network to its systems; and Ellie Mae, which manages real estate mortgages using blockchain.
The analyst rates Akamai and DocuSign as “overweight” and Ellie Mae as “underweight,” CNBC reported.
But what about a company like IBM, which is investing millions of dollars in educating future blockchain workers, developing blockchain food-tracking systems and is one of the biggest filers of blockchain patents?
“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 sizable Akamai network is an inherent advantage in running a distributed ledger in blockchain.”