Recent positive performances from crypto-related stocks like CRCL and HOOD have prompted investors to ask critical questions: "If the stablecoin bill passes, where will the market growth come from?" "Why do assets like SBET and BMNR surge when associated with Ethereum?" "Is there a connection between RWA opportunities and Ethereum?" "Why are you bullish on ETH regardless of short-term price fluctuations?"
While we've provided fragmented answers, this article consolidates our insights, offering a systematic overview from a foundational logic and long-term perspective. It also serves as a supplement to our previous reports.
"ETH's rise isn't driven by one or two institutions buying or promoting it; it's the collective choice of mainstream institutions during a transformative layout, and the tipping point for this trend is approaching."
Analyzing the Data
Stablecoins have exceeded market expectations, reaching a record total market capitalization of $258.3 billion. The U.S. "Genius" bill has passed the Senate vote and moved to the Republican-led House. Former President Trump has urged that the U.S. stablecoin legislation be completed before Congress adjourns in August. Hong Kong's "Stablecoin Ordinance" has been passed and will take effect on August 1. U.S. Treasury Secretary Yellen predicts that if the U.S. stablecoin bill passes, the stablecoin market could rapidly grow to over $2 trillion in the coming years—a tenfold increase from today.
Asset tokenization is one of the fastest-growing markets alongside stablecoins. Real-World Assets (RWA) have grown from $5.2 billion in 2023 to $24.3 billion today, a 460% increase.
Currently, traditional finance boasts a total market cap of over $400 trillion, while the crypto market stands at $3.3 trillion, stablecoins at $0.25 trillion, and RWA at $0.024 trillion. Industry predictions from institutions like Standard Chartered, Redstone, and RWA.xyz suggest that by 2030–2034, 10%–30% of global assets could be tokenized, representing a scale of $40–120 trillion. This would expand the RWA market by over 1,000 times.
What other businesses are "BlackRocks" actively pursuing alongside stablecoins and cryptocurrency ETFs?
- BlackRock’s BUIDL Fund: BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is a blockchain-based, tokenized dollar-pegged fund. It uses tokenization to represent underlying assets (primarily U.S. Treasuries) and currently has Assets Under Management (AUM) of $2.86 billion (11.7% of the RWA market), with 95% of funds deployed on Ethereum.
- Securitize: Backed by BlackRock, Jump, and Coinbase, this asset tokenization company has partnered with multiple traditional financial institutions to issue various tokenized products. These include tokenizing private equity funds with Hamilton Lane, exploring tokenized investment products with VanEck, and tokenizing private credit and alternative investments with Apollo. It has also assisted KKR with fund tokenization. Tokenized products issued via Securitize total $3.7 billion (15% of the RWA market), with 80% deployed on Ethereum.
- Franklin Templeton’s BENJI Fund: BENJI (BENJI Tokenized Fund) is a tokenized fund that converts traditional assets (like money market funds or bonds) into digital tokens. This enables asset digitization and fractionalization, allowing small investors to participate while supporting smart contract functionalities for收益 distribution or reinvestment. Current AUM is $743 million (3% of the RWA market), with 59% of funds deployed on Stellar and 10% on Ethereum.
More traditional financial institutions are advancing asset on-chain and tokenization businesses. This wave of institutional adoption represents the culmination of years of infrastructure development moving into production-scale deployment.
Reassessing Real-World Assets (RWA)
RWA (Real-World Assets) refers to the digitization and mapping of tangible or intangible assets from the real world—such as real estate, artwork, bonds, stocks, and commodities—onto the blockchain via tokenization. Broadly speaking, RWA in the industry primarily involves the on-chain tokenization of any asset outside native blockchain assets, where ownership, transfer, and settlement of underlying assets are completed entirely on the blockchain.
Tokenization offers several structural advantages:
- Programmability - Smart Contract-Driven Asset Management Revolution: Programmability involves encoding asset rules, conditions, and execution logic into automated, verifiable code via smart contracts on the blockchain. Tokenized assets can embed functions like dividends, redemptions, and staking, eliminating manual intervention. This shifts asset management from static holding to dynamic management and from manual data transmission to automated on-chain updates.
- Settlement Revolution - Efficiency and Risk Control: Tokenization enables peer-to-peer instant settlement via blockchain, replacing the lengthy T+2清算 cycles that have long plagued traditional financial systems. Parties can transfer ownership directly through tokens without centralized intermediaries, reducing counterparty risk and capital requirements.
- Liquidity Revolution - Traditional Finance Embraces Crypto Core: Tokenization enhances asset liquidity by fractionalizing traditionally illiquid assets (e.g., real estate, private equity) into standardized, small-denomination tokens. These tokens can be traded on secondary markets and integrated with increasingly mature DeFi systems, significantly boosting liquidity. The blockchain's unique 24/7 trading environment further amplifies this effect.
- Global Accessibility - Breaking Geographic Barriers: Leveraging blockchain's distributed nature, tokenization allows global investors to access tokenized assets via the internet without complex cross-border intermediaries or local accounts. This significantly expands the investor base while reducing distribution costs. The global application of stablecoins is a testament to this trend, which is now extending to markets like stocks.
What types of assets are being tokenized?
- Private Credit - The Largest RWA Tokenization Sector: Contrary to popular belief, private credit is currently the largest market for asset tokenization, with a total scale of $14.3 billion (58.8% of the RWA market). Companies like Figure, Tradable, and Maple are providing active loans worth $10.6 billion, $2 billion, and $800 million, respectively.
- Treasury Bonds - The Starting Point for Traditional Institutions: The tokenized Treasury bond market has reached $7.4 billion, accounting for 30% of the RWA market. Notable examples include BlackRock's BUIDL, Franklin Templeton's BENJI, Superstate's USTB, and Ondo Finance's USDY. Traditional financial institutions are using tokenized Treasury products as a foundation to explore derivative financial product development and DeFi integration on-chain.
- Tokenized Stock Market Accelerating: On June 30, crypto exchanges Kraken and Bybit announced the tokenization of U.S. stocks and ETFs via xStocks, enabling 24/5 trading. While these are not blockchain-native stocks, investors can participate in price difference trading through tokenized stocks, breaking down geographic barriers to the U.S. stock market. Robinhood is building "Robinhood Chain" on the Arbitrum blockchain to support future decentralized management of asset ownership, marking its transition from a traditional broker to a blockchain-native platform. It has divided stock tokenization into three stages to integrate blockchain for composability advantages. Meanwhile, Coinbase has prioritized tokenized stocks, with its Chief Legal Officer, Paul Grewal, actively seeking SEC approval for blockchain-based stock trading services. Coinbase plans to use its Base Layer 2 network as potential infrastructure for future tokenized stock settlement. We may witness these leaders launching blockchain-native popular stocks this year.
- Commodity Tokenization Dominated by Gold: Gold accounts for nearly 100% of tokenized commodities, with Paxos Gold (PAXG) leading at approximately $850 million in market capitalization.
- Private Equity Tokenization Explorations: Private equity is the ultimate goal for tokenization, as this technology can solve structural issues that have plagued the sector for decades, particularly the extremely poor liquidity of traditional private equity.
Stablecoins - RWA - DeFi
Stablecoins are the most critical underlying foundation for traditional finance integrating with on-chain ecosystems. They make money programmable and decentralized, serving as the basis for the流转 and settlement of all on-chain financial assets. As discussed in an interview with Dr. Xiao Feng, Chairman of Hashkey Group, and Meng Yan, "The U.S. presidential team and Congress are relatively frank and transparent about their motives for stablecoin legislation: first, to modernize the U.S. payment and financial system, and second, to consolidate and enhance the dollar's status, creating trillions in demand for U.S. Treasuries over the next few years." "Bitcoin national reserves are secondary for the U.S.; dollar stablecoins are primary and core to U.S. interests."
The current rapid development of RWA benefits from institutions continuously exploring new ways to integrate and promote legislation for digital asset market structure laws. Once stablecoin and market structure legislation is completed,大量 assets will be rapidly moved on-chain, with trading,收益, and settlement环节 operating on native blockchains, using stablecoins as the basic monetary unit and value carrier.
After大量 assets are on-chain, DeFi will begin to play a role, integrating newly on-chain assets with increasingly mature DeFi protocols to achieve efficiency, automation, and compliance. This will drive the creation of derivative products and the generation and distribution of high-liquidity收益. This cycle may present the DeFi ecosystem with its next significant growth opportunity since DeFi Summer.
Case Studies of RWA and DeFi Integration
Securitize Connects DeFi Systems via sTokens: As the world's largest tokenized asset issuer, Securitize's native tokenized securities are not directly compatible with DeFi protocols due to compliance considerations. Tokens must first be deposited into sVault to mint DeFi-compatible versions called sTokens, which can then integrate with existing DeFi ecosystems.
- BlackRock BUIDL and Euler Protocol: Securitize's sBUIDL (a derivative token of BUIDL) has been integrated into the Euler lending protocol on Avalanche. Holders can deposit sBUIDL into sToken Vault to borrow other assets while continuing to earn daily收益 from BUIDL.
- Apollo ACRED and Morpho Protocol: The sToken version of ACRED (sACRED) operates on Polygon PoS via Morpho. Holders can use sACRED as collateral to borrow USDC, enabling automatic recycling and reinvestment to amplify收益.
- Ethena’s USDtb Integrates BUIDL for Stable收益 Floors: Ethena's risk committee approved USDtb as a primary support asset when delta-neutral funding strategies hit local minima. USDtb holds 90% of its reserves in BlackRock's BUIDL fund, serving dual functions: providing low-risk collateral for margin trading on centralized exchanges and offering compliant Treasury exposure during unfavorable funding environments.
"USDe's incorporation of USDtb support has indirectly catalyzed an explosion of complex DeFi收益 strategies, particularly facilitating robust money markets for Pendle's principal tokens (PT) and yield tokens (YT). Traditional finance views these tools as interest rate markets. During periods when crypto derivative funding rates turn negative or compress significantly, USDtb support provides a crucial stable收益 floor (typically 4–5% APR). This predictable minimum收益 foundation is essential for PT token valuation and Aave's oracle system, enabling more accurate pricing models and safer liquidation mechanisms for zero-coupon bond mechanisms."
Currently, traditional financial institutions are starting with stablecoins, using tokenized Treasury products as a foundation to explore on-chain derivative product development and compliant integration with DeFi.
Ethereum: The Preferred Choice for Institutions
Data shows that Ethereum remains the primary blockchain for institutional asset tokenization. ETH hosts $7.5 billion in tokenized market capitalization, accounting for 58.41% of the total. Ethereum's L2, ZKsync Era, hosts $2.245 billion (17.47%), while Aptos, the leading non-Ethereum blockchain, has a tokenized market cap of $540 million (approximately 4.23%).
From a foundational logic perspective, institutions prefer Ethereum for on-chain asset deployment for three reasons:
- Unmatched Security: Ethereum boasts the highest security among public blockchains, with a decade-long track record free of severe issues like downtime. Its ability to upgrade core architecture without停机 during the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) has been likened to "changing an engine mid-flight." This stability, driven by excellent technical foundations and organizational integration capabilities, aligns with the prudent principles institutions require for new business布局.
- Mature DeFi Ecosystem and Liquidity: Ethereum has the most mature DeFi ecosystem, the best liquidity, and the most innovative product mechanisms. By deploying on ETH, institutions can quickly integrate with established DeFi systems and access superior liquidity.
- High Decentralization and Global Reach: Ethereum's decentralization and global business reach make it a balance point for large institutions and global investors. One reason stablecoins hold strategic importance for the U.S. is their ability to achieve decentralized global reach on-chain, breaking down national currency barriers based on political divisions and disseminating dollar equivalents worldwide via the internet. Asset tokenization follows a similar pattern. For instance, recent stock tokenization allows individuals who previously couldn't invest in U.S. stocks to participate on-chain, bypassing national准入 restrictions. Thanks to its superior liquidity and influence, Ethereum is the preferred blockchain for global business reach. Its decentralized nature also makes it a利益平衡中心 for large institutions and global investors. Sovereign nations' large institutions are unwilling to choose a blockchain dominated or controlled by another country for product issuance and significant financial activities.
Insights from Etherealize
The Ethereum Foundation (EF) has undergone clear functional differentiation and specialization, restructuring internally into three major business groups while spinning off specific functions to external organizations. Etherealize was born from this evolution. It positions itself as the "institutional marketing and product pillar" of the Ethereum ecosystem, focusing on interfacing with traditional finance and Wall Street to accelerate Ethereum's institutional adoption.
Etherealize argues that ETH should not be evaluated as a tech stock but as a new asset class: digital oil—the asset that powers, guarantees, and serves as the reserve for the internet's new financial system.
"The traditional financial system is at the beginning of a structural transition from analog infrastructure to digital-native architecture. Ethereum is poised to become the foundational software layer—similar to an operating system like Microsoft Windows—upon which the global new financial system will be built. When this materializes, ETH will become the foundational asset of a comprehensive global platform encompassing future finance, tokenization, identity, computing, AI, and more. This inherent complexity makes ETH harder to define, especially compared to a straightforward store-of-value asset like Bitcoin—but it also makes ETH strategically more valuable and implies greater long-term potential."
Moreover, ETH is not merely a cryptocurrency; it is a multifunctional asset serving roles including: computational fuel; a value storage asset with yield;原始 settlement collateral; a deflationary asset; a representation of tokenized economic growth; a reserve trading pair; and a strategic reserve asset.
Consequently, ETH cannot be accurately valued using discounted cash flow methods. Instead, it must be viewed from the perspectives of strategic value storage and utility-driven scarcity. ETH powers the digital economy, secures it, captures value from its growth, and possesses inherent scarcity due to its supply dynamics and issuance cap. As the global economy transitions to tokenized infrastructure, ETH will become indispensable—not only as fuel but also as the native asset of the future financial system's monetary and settlement layer.
Why has ETH Lagged Behind BTC?
The answer is simple: Bitcoin's narrative has been accepted by institutions, while Ethereum's narrative has not. In comparison, Ethereum's value proposition is more challenging to define—not because it is weaker but because it is broader. Bitcoin is a single-purpose store-of-value asset, whereas Ethereum is a programmable foundation supporting the entire tokenized economy.
The Process of Accelerating ETH Repricing is Underway:
- Surge in Demand: At the institutional level, large-scale rapid adoption and deployment of tokenized assets and financial infrastructure on Ethereum have begun, as evidenced by the data in this article.
- Accelerating Demand for Native Crypto收益: As institutions大规模 build on ETH,以太坊 ETF staking becomes a matter of time. The emergence of institutional physical subscription/redemption models will significantly boost institutional interest in ETH staking收益.
- Strategic ETH Hoarding: A competition is underway within the Ethereum ecosystem to hoard ETH as a monetary premium store-of-value asset. Recently, U.S.-listed company Bitmine Immersion Technologies raised $250 million to launch an ETH financial strategy, driving its stock price from $4 to a high of $74 in two days—a increase of over 180%.
- ETH as an Institutional Treasury Asset: ETH's unique characteristics—原始 collateral, neutrality,收益, and global utility—make it the preferred treasury reserve asset for institutions globally.
In summary, ETH may not be the only long-term choice for institutions entering the blockchain space, but it is the current optimal solution for大规模 asset on-chain deployment. Based on data, examples, foundational logic, and recent significant news, the trend of ETH being重新重视 is imminent.
Frequently Asked Questions
What are Real-World Assets (RWA) in blockchain?
Real-World Assets (RWA) refer to tangible or intangible assets—like real estate, bonds, or commodities—that are tokenized on a blockchain. This process involves creating digital tokens that represent ownership or a stake in these assets, enabling them to be traded, settled, and managed on-chain with increased efficiency and accessibility.
Why is Ethereum the preferred blockchain for institutional tokenization?
Etherealize is an organization focused on accelerating Ethereum's institutional adoption by serving as a bridge between traditional finance and the Ethereum ecosystem. It handles institutional marketing and product development, emphasizing ETH's role as a foundational asset for the future digital economy.
How do stablecoins contribute to the growth of RWA and DeFi?
Stablecoins provide a programmable, decentralized foundation for on-chain finance, facilitating the流转 and settlement of tokenized assets. As stablecoin legislation progresses, they are expected to drive significant growth in RWA by serving as the primary monetary unit and value carrier for tokenized assets, which can then integrate with DeFi protocols for enhanced liquidity and收益 generation.
What is the significance of tokenization for traditional finance?
Tokenization revolutionizes traditional finance by enabling fractional ownership, enhancing liquidity for previously illiquid assets, reducing settlement times from days to instant, lowering transaction costs, and providing global accessibility. It allows traditional assets to be managed and traded more efficiently on blockchain platforms.
How might Ethereum's value be assessed differently from traditional assets?
Unlike traditional assets valued through cash flow models, ETH's value derives from its utility as computational fuel, its role as collateral, its deflationary supply mechanism, and its strategic position in the growing tokenized economy. Its value is tied to network adoption, security demand, and its multifaceted use cases rather than traditional financial metrics.
What are the risks associated with investing in tokenized assets?
Risks include regulatory uncertainty, technological vulnerabilities in smart contracts, market volatility, liquidity issues in emerging tokenized markets, and the complexity of integrating traditional legal frameworks with blockchain-based ownership. Investors should conduct thorough due diligence and understand the specific mechanisms of each tokenized asset. For deeper insights into market trends and asset performance, explore more strategies.