In recent months, the strong performance of crypto-linked equities like CRCL and HOOD has sparked meaningful discussions among investors. Questions are emerging: Where will new market liquidity come from if stablecoin legislation passes? Why do assets like SBET and BMNR surge simply by associating with Ethereum? Is there a real connection between RWA (Real-World Assets) and ETH? And why do analysts remain bullish on Ethereum regardless of short-term price movements?
While fragmented answers have been offered, this article consolidates a comprehensive view—grounded in data, structural trends, and long-term logic—to explain why Ethereum is positioned at the center of the next phase of digital finance.
👉 Discover how Ethereum is becoming the backbone of institutional blockchain adoption
The Data Tells the Story
The growth of stablecoins has far exceeded expectations. With a record-high market cap of $258.3 billion, stablecoins are no longer niche tools—they're becoming foundational infrastructure. In the U.S., the Genius Act has passed the Senate and is now under review in the Republican-led House. Former President Trump has urged Congress to finalize stablecoin legislation before its August recess. Meanwhile, Hong Kong’s Stablecoin Ordinance will take effect on August 1, 2025, signaling global regulatory momentum.
U.S. Treasury Secretary Scott Bessent projects that once federal legislation passes, stablecoin market capitalization could grow tenfold—surpassing $2 trillion in just a few years.
Beyond stablecoins, Real-World Asset (RWA) tokenization is one of the fastest-growing sectors in crypto. From $5.2 billion in 2023, RWA has surged to **$24.3 billion—a 460% increase. Traditional finance, with a total market value exceeding $400 trillion**, remains vastly under-digitized. Yet, forecasts from institutions like **Standard Chartered**, **Redstone**, and **RWA.xyz** suggest that by 2030–2034, **10%–30% of global assets could be tokenized**, representing a potential market of **$40–120 trillion**.
This implies RWA could grow over 1,000 times from today’s levels—making it one of the most significant financial transformations of the decade.
But who’s leading this shift?
What Are Institutions Like BlackRock Building Beyond ETFs?
While BlackRock and other traditional finance giants have driven crypto ETF adoption, their ambitions extend far beyond spot purchases. They're building on-chain financial infrastructure—and doing so primarily on Ethereum.
1. BlackRock’s BUIDL Fund
BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is a tokenized U.S. Treasury fund built on blockchain. With over $2.86 billion in assets under management (AUM)—representing 11.7% of the RWA market—95% of its holdings are deployed on Ethereum.
2. Securitize: The Institutional Gateway
Backed by BlackRock, Jump Trading, and Coinbase, Securitize enables traditional institutions to tokenize real-world assets. It has facilitated:
- A private equity fund with Hamilton Lane
- Tokenized investment products with VanEck
- Private credit tokenization with Apollo
- Fund tokenization for KKR
Total value issued: $3.7 billion (15% of RWA market), with 80% on Ethereum.
3. Franklin Templeton’s BENJI Fund
Franklin’s BENJI Tokenized Fund offers fractional ownership in money market and bond funds via blockchain. With $743 million AUM (3% of RWA), it operates across Stellar (59%) and Ethereum (10%).
These developments signal a broader trend: years of blockchain infrastructure investment are now transitioning into real-world production use.
Reassessing RWA: The Structural Advantages of Tokenization
RWA refers to the process of converting physical or intangible assets—real estate, bonds, stocks, commodities—into digital tokens on a blockchain. But more than digitization, it enables programmable ownership, instant settlement, and global access.
Key Benefits of Tokenization:
- Programmability: Smart contracts automate dividends, redemptions, and compliance—turning static assets into dynamic financial instruments.
- Settlement Revolution: Replaces T+2 clearing with instant, peer-to-peer settlement—reducing counterparty risk and capital lock-up.
- Liquidity Transformation: Illiquid assets like private equity or real estate can be fractionalized and traded 24/7 in DeFi markets.
- Global Accessibility: Investors worldwide can access tokenized assets without intermediaries or geographic restrictions.
As Sumanth Neppalli noted:
“The faster value settles, the more frequently capital can be redeployed—expanding economic scale. Business models will shift from charging for flow to capturing momentum.”
What’s Being Tokenized Today?
- Private Credit ($14.3B) – Largest RWA segment (58.8%). Platforms like Figure, Tradable, and Maple lead.
- Treasury Bonds ($7.4B) – Includes BUIDL, BENJI, USTB, and USDY.
- Stocks & ETFs – Kraken and Bybit launched xStocks for 24/5 trading; Robinhood is building “Robinhood Chain” on Arbitrum; Coinbase pushes for SEC approval to tokenize stocks on Base.
- Commodities – Gold dominates (PAXG at $850M).
- Private Equity – Long-term goal: solving decades-old liquidity issues.
👉 See how major financial players are using Ethereum to tokenize real-world assets
Stablecoins → RWA → DeFi: The Convergence
Stablecoins are the foundation layer for institutional blockchain adoption. They make money programmable, borderless, and instantly settleable.
As肖风 (Chairman of Hashkey Group) stated:
“The U.S. government sees stablecoins not just as payment tools—but as a way to modernize finance and reinforce dollar dominance… Dollar stablecoins are a core national interest.”
Once stablecoin and market structure laws pass, a flood of traditional assets will move on-chain—settled in stablecoins and powered by smart contracts.
Then comes DeFi integration.
RWA + DeFi Use Cases:
Securitize’s sTokens: Allow compliant assets like BUIDL to enter DeFi via vaults.
- sBUIDL on Avalanche’s Euler: users borrow against holdings while earning yield.
- sACRED on Morpho/Polygon: collateralize for USDC loans with auto-compounding.
- Ethena’s USDtb: 90% backed by BUIDL; provides stable yield floor (4–5%) even when crypto funding rates turn negative—critical for protocols like Pendle and AAVE.
This fusion marks the dawn of a new DeFi era—one that’s compliant, institutional-grade, and deeply integrated with traditional finance.
Why Ethereum Dominates Institutional Adoption
Despite competition, Ethereum remains the top choice for institutional tokenization, with:
- $7.5B in tokenized assets (58.4% market share)
- $2.245B on L2 ZKsync Era (17.5%)
- Runner-up Aptos: $540M (4.2%)
Three Core Reasons:
- Unmatched Security: Over a decade of uptime, including a seamless transition from PoW to PoS—“changing engines mid-flight.”
- Mature DeFi Ecosystem: Best liquidity, deepest protocols, most innovation.
- Neutrality & Global Reach: No single nation controls Ethereum—making it the ideal balance point for global institutions avoiding geopolitical dependencies.
Etherealize: Reframing Ethereum’s Narrative
The Ethereum Foundation has evolved, spawning Etherealize—an organization focused exclusively on institutional adoption.
Etherealize argues:
“ETH isn’t a tech stock—it’s digital oil. It powers, secures, and underpins the internet’s new financial system.”
They envision Ethereum as the operating system for future finance—a platform where money, identity, AI, and computation converge.
Unlike Bitcoin—a simple store of value—Ethereum is complex because it’s multifunctional:
- Gas for computation
- Staking asset with yield
- Native settlement collateral
- Deflationary due to EIP-1559
- Reflection of tokenized economic growth
You can’t value ETH like a stock. Its worth lies in strategic utility and scarcity-driven demand.
Why Has ETH Lagged Behind BTC?
Simple: Bitcoin’s narrative is clear—digital gold. Ethereum’s is broader—and harder to summarize.
But that breadth is its strength. ETH isn’t just money; it’s the foundation for an entire digital economy.
Catalysts for ETH Revaluation
- Soaring Institutional Demand: Data shows massive adoption on Ethereum.
- Crypto-Native Yield Demand: ETH ETFs will unlock staking—driving yield-seeking capital.
- Strategic Accumulation: Companies like Bitmine Immersion are adopting ETH as treasury reserves—its stock surged 180%+ after announcing a $250M ETH strategy.
- ETH as Institutional Reserve Asset: Its neutrality, yield, and utility make it ideal for global balance sheets.
👉 Learn how Ethereum is evolving into the world’s digital financial infrastructure
Frequently Asked Questions (FAQ)
Q: Is RWA just hype or a real trend?
A: It's real. With $24B already tokenized and projections reaching $120T by 2034, RWA represents one of the largest financial shifts in history.
Q: Why is most RWA built on Ethereum?
A: Due to its security, developer ecosystem, liquidity, and neutrality—critical for global institutions.
Q: Can stablecoin regulation boost crypto adoption?
A: Yes. Clear rules will unlock trillions in institutional capital currently waiting on sidelines.
Q: Will tokenized stocks replace traditional markets?
A: Not replace—but complement. They offer 24/7 access, lower fees, and global participation.
Q: Is ETH undervalued compared to BTC?
A: Many analysts believe so. ETH supports more utility and economic activity—yet trades at a fraction of BTC’s market cap relative to usage.
Q: When will ETH ETFs launch with staking?
A: While not confirmed, growing institutional demand makes staking-enabled ETFs increasingly likely in 2025–2026.
The convergence of stablecoins, RWA, and DeFi is accelerating—and Ethereum sits at its core. This isn’t speculation; it’s measurable adoption by the world’s largest financial institutions.
The revaluation of ETH isn’t coming—it’s already beginning.