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. 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.