Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisers near Chicago, Graycale organizes an exclusive event, Crypto Connect, Thursday May 22. Learn more.
In Crypto for Advisors today, Tedd Straziri by Evolve Etfs writes on the evolution of token and the value it brings to investors.
Then, Peter Gaffney of Inveniam answers questions about what tokenization can do for wealth managers and their customers to ask an expert.
– Sarah Morton
The boom of token: why Ethereum remains the rails for the tokenization of real assets
The tokenization of active active world (RWAS) went beyond the status of fashionable words to become a reality of several billion dollars, led by Ethereum. Out of more than $ 250 billion in tokenized assets, Ethereum orders around 55% of the market. Stablecoins and American treasury bills for real estate, private credits, basic products and actions, Ethereum has become the favorite blockchain infrastructure for institutions aimed at filling traditional finance with the world of digital assets.
Why tokenization is important
Basically, tokenization is the process of converting property rights into Rwas into digital tokens that live on a blockchain. This transformation introduces unprecedented efficiency in the speed of settlement, liquidity and accessibility. Tokenized assets can be exchanged 24/7, settled instantly and fractionalized to reach a wider range of investors. For institutions, tokenization reduces costs related to custody, intermediaries and manual processes, while offering transparency and programmability.
But while tokenization is a trend that can take root in several blockchains, Ethereum’s domination is not an accident. Its established infrastructure, its generalized developer ecosystem and its proven safety have made it the essential platform for the main players in space.
Classified: Blockchain networks taking over the RWA tokenization
BUIDL DE BLACKROCK and rise in power of institutional tokenization
One of the best examples of institutional adoption of the tokenization is Blackrock’s Buidl, a tokenized American Treasury Fund built on Ethereum. Launched at the beginning of 2024, BUIDL allows investors to access treasury bills via blockchain, offering real -time regulations and transparency in assets. The fund quickly evolved at more than $ 2.5 billion in management assets, guaranteeing a market share of 41% in the space of the US Treasury tokenized. Ethereum remains the dominant chain of token treasury bills, representing 74% of the US treasury bill market of $ 6.2 billion. Buidl is not only a product; It is a signal that Tradfi considers Ethereum as the backbone of the next financial era.
Stablecoins: the foundation layer
No discussion on the tokenization is complete without stablecoins. The sophisticated active ingredients in US dollars such as the USDC and the USDT represent the vast majority (95%) of all tokenized assets. Stablecoins alone represent more than $ 128 billion in the tokenized economy of Ethereum1 and serve as the main means of exchange through the establishments of DEFI, cross -border and the payment platforms.
In many development economies, such as Nigeria or Venezuela, Stablecoins give access to the US dollar without the need for a bank. Whether it is to protect the economies of inflation or allow transparent international trade, stabbed show the value of the real world of tokenized dollars, jostled by the Ethereum network.
Tokenized stocks and beyond
Tokenized stocks on Ethereum represent an increasing but always emerging segment of the tokenized active space. These digital assets reflect the price of actions and FNB of the real world, offering 24/7 trading, fractional property, global accessibility and instant settlement. The main advantages include increased liquidity, lower transaction costs and democratized access to markets traditionally limited by geography or account type. Popular tokenized stocks include Nvidia, Coinbase and Microstrategy, as well as ETFs like the spy. As regulatory clarity improves, tokenized actions on Ethereum could reshape the way in which investors access and exchange actions, in particular in poorly served or emerging markets.
In addition, real estate, private credit, basic products and even art find their way on Ethereum in token formats, proving the adaptability of the chain for various asset classes.
Rwas tokenized (excluding stablecoins)
Source: Rwa.xyz, April 22, 2025.
Conclusion
The domination of Ethereum in token workers is not only the first – it is a question of being built for permanence. While the infrastructure underpins the tokenization of real assets that matures, the role of Ethereum as a financial layer of the Internet becomes more pronounced. While the new channels like Solana are niche in space, Ethereum continues to be the platform where the regulations respect innovation and where finance finds its next form.
– Tedd Strazimi, product research partner, EVOLVE ETFS
Ask an expert
Q. What are the value engines of the tokenization for a wealth manager?
A. The tokenization of assets should be delivered with new utility. Financial advisers, wealth managers and other trustees already have access to a large world of investment products. When the tokenization adds value, it is by the infrastructure emerging around active active world, in particular the applications allowing the guarantee and the margin of the tokens supported by assets.
Blockchain -based data management systems, such as Inveniam, are designed to allow real -time relationships at the level of assets to facilitate private stable coats to support assets, with the same integrity and the same traceability that exist elsewhere in cryptographic space. This allows inherited private asset classes – such as real estate and credit – to operate in a similar way to the way $ 30 billion in cryptographic loans are currently guaranteed on platforms like Aave. This new utility is a significant added value and a differentiation service factor that advisers can offer customers beyond traditional cryptography allowances.
Q. How does the tokenization help advisers to achieve their portfolio management objectives?
A. In addition to the advantages such as the guarantee, the advisers also acquire greater control over the client’s portfolio allowances through second -rate tokenization services. Numerous investment funds in investment capital, hedge funds, private credit and commercial real estate have high minimum investment requirements and illiquid secondary negotiation activity. This mentality “define and forget” leads to ineffective management of the portfolio, in which the overall advisers or undergo the “bombing” of the underlying asset.
On the other hand, tokenized funds can be fractionalized much more effectively than existing offers, which means that advisers can buy at much lower minimum, such as $ 10,000 increments against millions of dollars at a time. Then, as customer preferences, positions and portfolios change, advisers can reallocate accordingly, using secondary liquidity places and low minimum subscriptions. This improves the ability of an advisor to meet customer requests and achieve return goals without being inhibited by obsolete practices.
– Peter Gaffney, director of Defi & Digital Trading, Inviniam
Continue to read
- SEC Commissioner, Hester Peirce, said that “tokenization is a technology that could have a significant impact on the financial markets.
- New Hampshire appears in history and becomes the first American state to set up investments in the state in Bitcoin and digital assets.
- Morgan Stanley develops plans to offer a direct cryptography exchange on its E * sales platform by 2026.
