The crypto ecosystem is continuing to develop, despite the market correction and bankruptcies witnessed last year, Bank of America (BAC) said in a note Thursday, following a report that exchange operator Nasdaq (NDAQ) plans to launch a digital asset custody service by the end of this quarter.

Institutional demand is driving the offering of institutional-grade products, with Nasdaq just the latest traditional finance, or TradFi, firm to offer more services in the digital assets space, the report said.

Bank of America says institutional investors remain engaged and focused on the “disruptive nature of blockchain technology over the longer term.”

The bank says it expects crypto company collapses to slow institutional trading as they “reevaluate counterparty risk and ensure that custody, exchange and broker-dealers are separate entities or siloed.”

However, these collapses create a void in the crypto ecosystem that “trusted and experienced TradFi firms offering institutional-grade products may fill,” analysts Alkesh Shah and Andrew Moss wrote.

The U.S. Securities and Exchange Commission’s (SEC) Enhanced Safeguarding Rules could limit the ability of registered investment advisers to provide custody for clients’ tokens on most crypto-native exchanges, which will further drive TradFi institutions into the space, the report added.

“Our view is that TradFi institutions remain the counterparty of choice,” the bank said.

Read more: Tokenization of Real-World Assets a Key Driver of Digital Asset Adoption: Bank of America