The rise of crypto-linked equities like CRCL and HOOD has sparked renewed interest in blockchain’s role in traditional finance. Amid growing market curiosity—why do tokens like SBET and BMNR surge when tied to 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?—this article offers a comprehensive, long-term analysis grounded in data, infrastructure trends, and institutional adoption patterns.
The Rise of On-Chain Finance: Stablecoins and RWA
The global shift toward on-chain financial infrastructure is accelerating. With the U.S. Genius Act passing the Senate and advancing to the Republican-led House, and President Trump urging stablecoin legislation to be finalized before Congress recesses in August, regulatory clarity appears imminent. Meanwhile, Hong Kong’s Stablecoin Ordinance will take effect on August 1, 2025, signaling a coordinated global push.
U.S. Treasury Secretary Ben Carson recently projected that if the stablecoin bill passes, the stablecoin market could grow tenfold—surpassing $2 trillion in value within years. But stablecoins are just one piece of the puzzle.
Asset tokenization, particularly Real-World Assets (RWA), is emerging as one of the fastest-growing sectors in crypto. From $5.2 billion in 2023, RWA has surged to $24.3 billion—an increase of over 460%. Industry forecasts from institutions like Standard Chartered, Redstone, and RWA.xyz suggest that by 2030–2034, 10% to 30% of global assets could be tokenized, representing a potential market size of $40–120 trillion.
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This implies the RWA market could expand 100 times its current size, unlocking unprecedented capital efficiency and accessibility.
Institutional Giants Lead the Charge
Firms like BlackRock and Franklin Templeton are no longer just observers—they’re active builders in the tokenized asset space.
1. BlackRock’s BUIDL Fund
BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is a blockchain-based tokenized fund backed by U.S. Treasuries. With over $1 billion in assets under management (AUM), 28% of its capital is deployed on Ethereum, underscoring confidence in its security and scalability.
2. Securitize: Bridging Traditional Finance and DeFi
Backed by BlackRock, Jump Crypto, and Coinbase, Securitize has become a leading RWA issuance platform. It has partnered with:
- Hamilton Lane to tokenize private equity funds
- VanEck for tokenized investment products
- Apollo Global Management to digitize private credit and alternative assets
- KKR for fund tokenization
Assets issued via Securitize now total $3.7 billion—about 15% of the entire RWA market—with 80% built on Ethereum.
3. Franklin Templeton’s BENJI Fund
Franklin’s BENJI tokenized fund brings traditional money market and bond assets on-chain. With $743 million in AUM (3% of RWA), while most assets are on Stellar, 10% are already deployed on Ethereum, indicating strategic diversification.
These moves reflect a broader trend: traditional financial institutions are no longer experimenting—they’re scaling.
Reassessing Real-World Assets (RWA)
RWA refers to the process of representing tangible or intangible real-world assets—such as real estate, bonds, stocks, or commodities—as digital tokens on a blockchain. Broadly defined, it encompasses any non-native crypto asset brought on-chain, enabling ownership, transfer, and settlement through decentralized networks.
Key Structural Advantages of Tokenization
1. Programmability via Smart Contracts
Smart contracts automate asset management—embedding rules for dividends, redemptions, or staking. This transforms static holdings into dynamic, self-executing financial instruments.
2. Settlement Revolution
Tokenization enables near-instant settlement, replacing the legacy T+2 clearing cycle. Peer-to-peer transfers eliminate intermediaries, reducing counterparty risk and capital requirements.
3. Liquidity Transformation
Illiquid assets like real estate or private equity can be fractionalized into tradable tokens. Combined with DeFi protocols and 24/7 markets, this dramatically enhances liquidity.
“The faster value settles, the more frequently capital can be redeployed—expanding economic scale. Business models shift from charging for flow to capturing momentum.” – Sumanth Neppalli
4. Global Accessibility
Blockchain removes geographic barriers. Investors worldwide can access tokenized assets without local accounts or cross-border intermediaries—mirroring stablecoins’ global reach.
What’s Being Tokenized Today?
| Asset Class | Market Size | Key Players |
|---|---|---|
| Private Credit | $14.3B (58.8%) | Figure, Maple, Tradable |
| U.S. Treasuries | $7.4B (30%) | Franklin (BENJI), USDY |
| Equities | Emerging | Kraken (xStocks), Robinhood Chain |
| Commodities | ~$850M | PAXG (Gold) |
| Private Equity | Early Stage | Securitize, KKR |
Notably, private credit dominates RWA, contrary to popular belief. Meanwhile, equity tokenization is gaining momentum—Kraken and Bybit now offer tokenized U.S. stocks via xStocks, enabling 5-day trading access outside traditional hours.
Robinhood is building its own blockchain—“Robinhood Chain” on Arbitrum—to support decentralized asset ownership. Coinbase has labeled tokenized stocks a “top priority,” with its legal team actively engaging the SEC to approve blockchain-based stock trading on Base L2.
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Stablecoins → RWA → DeFi: The Trifecta of On-Chain Growth
Stablecoins are the foundational layer—programmable, decentralized money that powers all on-chain transactions. As肖风 (Dr. Xiao Feng) noted in a recent discussion:
“The U.S. push for stablecoin regulation isn’t just about modernizing payments—it’s about reinforcing dollar dominance and creating trillions in new demand for U.S. Treasuries.”
Once stablecoin and market structure regulations are finalized, a flood of institutional capital will move on-chain—settling in stablecoins and transacting natively on blockchains.
This is where DeFi re-enters the picture. As RWA grows, DeFi protocols will integrate these assets to create automated, compliant financial products—lending markets, yield strategies, derivatives—with higher efficiency and lower costs.
Real-World Examples of RWA + DeFi Integration
1. Securitize’s sTokens Enter DeFi
Securitize mints compliant sTokens that interface with DeFi:
- sBUIDL on Euler (Avalanche): Users deposit sBUIDL to borrow assets while earning daily yield from BUIDL.
- sACRED on Morpho (Polygon): sACRED serves as collateral to borrow USDC, enabling auto-compounding strategies.
2. Ethena’s USDtb Backed by BUIDL
Ethena’s USDtb reserve holds 90% of its assets in BlackRock’s BUIDL fund. This provides:
- Low-risk collateral for CEX margin trading
- Regulatory-compliant treasury exposure during volatile funding periods
The integration of USDe and USDtb has catalyzed complex DeFi yield strategies—especially on Pendle Finance—where principal (PT) and yield tokens (YT) now form robust money markets used even by traditional finance players as interest rate instruments.
Why Ethereum Dominates Institutional Adoption
Despite competition from other blockchains, Ethereum remains the primary choice for institutional asset tokenization:
- Tokenized asset value on Ethereum: $22.45 billion (17.47% of total)
- Next closest: Aptos at $540 million (~4.23%)
Three Core Reasons Institutions Choose Ethereum
1. Unmatched Security & Stability
With over a decade of operation and zero major outages, Ethereum’s transition from PoW to PoS—completed mid-flight—demonstrated unparalleled technical resilience. Institutions trust systems that don’t break under pressure.
2. Most Mature DeFi Ecosystem
Ethereum hosts the deepest liquidity pools and most innovative protocols—Uniswap, Aave, MakerDAO. New RWA projects benefit from plug-and-play integration with established infrastructure.
3. Decentralization & Global Neutrality
No single nation controls Ethereum. This neutrality makes it ideal for sovereign institutions and multinational firms unwilling to rely on regionally dominated chains.
As Etherealize—a newly formed entity focused on institutional outreach for Ethereum—puts it:
“ETH should not be valued like a tech stock. It is digital oil—the fuel powering the internet’s new financial system.”
ETH functions as:
- Gas for computation
- A yield-bearing store of value
- Native settlement collateral
- A deflationary asset due to EIP-1559
- A reserve asset in tokenized economies
It cannot be valued using traditional DCF models. Instead, ETH must be assessed through strategic utility and scarcity-driven demand.
Why Has ETH Lagged Behind BTC?
Simple: Bitcoin’s narrative is clear—digital gold. It’s easy for institutions to grasp.
Ethereum’s value proposition is broader—and thus harder to communicate. It’s not just a store of value; it’s the programmable foundation of an entire tokenized economy.
But this re-rating is accelerating:
- Surging Institutional Demand: Data shows large-scale deployment of tokenized assets on Ethereum.
- Growing Appetite for Native Yield: With ETH staking ETFs likely soon, institutional demand for yield-generating ETH exposure will rise.
- Strategic ETH Accumulation: Public companies like Bitmine Immersion Technologies raised $250M to adopt ETH as treasury reserves—sending its stock from $4 to $74 in two days (+180%).
- ETH as Institutional Reserve Asset: Its neutrality, yield potential, and global utility make ETH ideal for cross-border capital storage.
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Conclusion: The ETH Revaluation Wave Is Coming
Ethereum may not be the only long-term blockchain solution—but it is the optimal path for mass asset onboarding today.
Backed by hard data, institutional momentum, regulatory tailwinds, and deep DeFi integration, ETH is transitioning from a speculative asset to a foundational pillar of global finance.
The convergence of stablecoins, RWA, and DeFi is creating a powerful flywheel—one that runs primarily on Ethereum.
Frequently Asked Questions (FAQ)
Q: Why are institutions choosing Ethereum over other blockchains for asset tokenization?
A: Due to its proven security, mature DeFi ecosystem, high decentralization, and global neutrality—key factors for institutional trust and scalability.
Q: How big could the RWA market become?
A: Industry estimates suggest RWA could grow 100x—from $24B today to $40–120 trillion by 2030–2034—as more real-world assets move on-chain.
Q: What role do stablecoins play in RWA growth?
A: Stablecoins serve as the base layer of on-chain finance—providing programmable, low-volatility money essential for settlement and trading of tokenized assets.
Q: Can DeFi really integrate with traditional finance through RWA?
A: Yes—projects like Securitize and Ethena already bridge compliant RWA with DeFi protocols such as Euler and Morpho, enabling automated yield strategies and lending.
Q: Will Ethereum ETFs boost adoption?
A: Absolutely. An ETH spot ETF with staking functionality would make it easier for traditional investors to gain exposure—and likely accelerate institutional accumulation.
Q: Is ETH undervalued compared to its utility?
A: Many analysts believe so. Given its role as digital infrastructure fuel—similar to oil in the industrial economy—ETH’s current valuation may not reflect its long-term strategic importance.
Keywords: Ethereum, RWA, asset tokenization, stablecoins, DeFi, institutional adoption, ETH revaluation