Thanks to our sponsor for this week’s newsletter, Grayscale. For financial advisers near Chicago, Grayscale hosts an exclusive event, Crypto Connect, Thursday 22 May. Learn more.
In today’s crypto for advisers, Tedd Strazimiri from Evolve Etfs writes about the development of tokenization and the value it brings to investors.
Then Peter Gaffney from Inreniam answers questions about what tokenization can do for wealth managers and their clients in Ask an expert.
And Sarah Morton
Tokenization boom: Why Ethereum remains the rails of the real world
The tokenization of real-world assets (RWAs) has moved beyond Buzzword status to become a reality of several billion dollars, led by Ethereum. Of the more than $ 250 billion in tokenized assets, Ethereum commands approx. 55% of the market. From stablecoin and US treasuries to real estate, private credit, raw materials and equities, Ethereum has emerged as the preferred blockchain infrastructure for institutions aimed at bridging traditional funding with the digital asset world.
Why tokenization matters
At its core, the tokenization is the process of converting ownership rights in RWAS to digital tokens living on a blockchain. This transformation introduces unprecedented efficiency in settlement speed, liquidity and accessibility. Tokenized assets can be traded 24/7, run immediately and fractionally to reach a wider range of investors. For institutions, tokenization reduces costs tied to custody, middlemen and manual processes while offering transparency and programmability.
But while tokenization is a trend that can take root over multiple blockchains, Ethereum’s dominance is no accident. Its established infrastructure, widespread developer ecosystem and proven security have made it go to platform for larger players entering space.
Ranked: Blockchain network that supports RWA -Tokenization
Blackrocks buidl and the rise of institutional tokenization
One of the best examples of institutional adoption of tokenization is Blackrocks Buidl, a tokenized American Ministry of Finance, built in Ethereum. BUIDL was launched in early 2024 and gives investors access to US treasuries via blockchain and offers real -time settlement and transparency in holdings. The fund has quickly scaled over $ 2.5 billion in assets under management and secured a 41% market share in the tokenized US Treasury. Ethereum remains the dominant chain of tokenized Treasury, accounting for 74% of the $ 6.2 billion tokenized US treasuries. Buidl is not just a product; It is a signal that Tradfi sees Ethereum as the backbone of the next financial era.
StableCOins: The basis
No discussion of tokenization is complete without stableecoins. US dollar-pointed assets like USDC and USDT represent the vast majority (95%) of all tokenized assets. Stableecoins alone account for more than $ 128 billion of Ethereum’s tokenized economy1 and serve as the primary exchange medium across defi, cross -border settlements and transfer platforms.
In many evolving economies, such as Nigeria or Venezuela, Stableecoin provides access to the US dollar without needing a bank. Whether it is shielding savings from inflation or enables seamless international trade, stableecoins show the real world the value of tokenized dollars, the back stop of the Ethereum network.
Tokenized stocks and beyond
Tokenized warehouses at Ethereum represent a growing but still beginning segment of the tokenized asset room. These digital assets reflect the price of shares and ETFs in the real world and offer around the clock trade, fraction, global accessibility and immediate settlement. The main benefits include increased liquidity, lower transaction costs and democratized access to markets traditionally limited by geography or account type. Popular tokenized warehouses include NVIDIA, Coinbase and Microstratey as well as ETFs like Spy. As regulatory clarity is improved, tokenized shares at Ethereum could reshape how investors and trading holdings, especially in underrated or new markets.
In addition, real estate, private credit, raw materials and even art find the way to Ethereum in tokenized formats, proving the chain’s adaptability for various asset classes.
Tokenized RWAs (excluding stableecoins)
Source: Rwa.xyz, from April 22, 2025.
Conclusion
Ethereum’s dominance in tokenized assets is not just about being first – it’s about being built for duration. As the infrastructure that underlies the real -world tokenization matures, Ethereum’s role as the economic layer of the Internet becomes more pronounced. While newer chains like Solana will cut niches in space, Ethereum remains the platform where regulation meets innovation and where Finans finds its next form.
– Tedd Strazimiri, Product Research Associate, Evolve Etfs
Ask an expert
Question: What is the value of the tokenization for a wealth manager?
ONE. The tokenization of assets must come with newly found tools. Financial advisers, wealth managers and other fiduciaries already have access to a broad universe of investment products. Where tokenization adds that value is through the infrastructure that arises around tokenized assets in the real world, especially applications that enable security and margin of asset -supported tokens.
Blockchain-based data control systems, such as Indiam, are designed to enable real-time reporting at the asset level to facilitate privately stacked stablecoin loans, with the same integrity and traceability found elsewhere in the crypto area. This allows Legacy Private Asset Classes – such as real estate and credit – to function similarly as $ 30 billion in crypto loans is currently being fitted to platforms like Aave. This new tool is a significant value added and a differentiating service factor that advisers can offer clients in addition to traditional crypto allocations.
Question: How does tokenization help with advisers to achieve their portfolio management goals?
ONE. Alongside benefits as a collateral, advisers also receive greater control over client portfolio distributions through second -order tokenization benefits. Many investment funds across private equity, hedge funds, private credit and commercial property have high minimum investment requirements and illiquid secondary trading activity. This “put it and forget about it” mentality leads to ineffective portfolio management, where advisers either collectively locate or under -allocate due to “lumpy” of the underlying asset.
In contrast, tokenized funds can be fractionally fractionally more efficiently than existing offers, which means advisers can buy at a much lower minimum, such as $ 10,000 steps, versus millions of dollars at a time. Such as client preferences, positions and portfolios change, advisors can redistribute accordingly and make use of secondary liquidity sites and continuous low-minimum subscriptions. This improves the ability of a counselor to meet client requirements and reach return goals without being hampered by outdated practice.
And Peter Gaffney, Director of Defi & Digital Trading, Indoiam
Continue to read
- SEC commissioner Hester Peirce stated that “tokenization is a technology that can have a significant impact on the financial markets.
- New Hampshire creates history and becomes the first US state to bring state investment in Bitcoin and digital assets.
- Morgan Stanley is developing plans to offer direct crypto trading on his E*trading platform in 2026.
