The growing crypto push toward on-chain financial assets is drawing attention from institutional investors and analysts. According to a recent client note from Bitwise Asset Management, Ethereum (ETH), Solana (SOL), XRP, and Chainlink (LINK) may be among the most direct beneficiaries of the emerging tokenization narrative.
The report suggests that the surge in blockchain-based representations of stocks, bonds, and other real-world assets (RWAs) is no longer theoretical and could begin influencing crypto prices sooner than previously expected.
Bitwise’s Chief Investment Officer Matt Hougan and Head of Research Ryan Rasmussen outlined this perspective in their latest analysis. They argue that while tokenization has long been considered a future trend, recent milestones suggest the infrastructure and momentum needed to support adoption are already materializing.
Tokenization Momentum: Crypto Firms and Institutional Backing
In the last month alone, Robinhood and crypto exchange Kraken have introduced tokenized stock trading platforms, built on crypto networks such as Arbitrum and Solana, respectively. Though currently limited to non-US users, Coinbase has also filed with the SEC to bring tokenized equities to the US market.
Simultaneously, financial institutions invested $135 million into the Canton Network, a Layer 1 blockchain built specifically for trading tokenized stocks and bonds. Participants in the round included Tradeweb, Citadel, Goldman Sachs, and DTCC, signaling institutional buy-in.
These advancements come amid regulatory support, as SEC Commissioner Paul Atkins labeled tokenization a significant innovation and suggested a pivot from punitive enforcement to proactive development. At the same time, real-world applications continue to emerge.
One of Latin America’s largest exchanges announced a $200 million tokenization initiative on the XRP Ledger, and Galaxy Digital warned tokenization could eventually impact traditional exchanges like the NYSE. Collectively, these moves point to a shift in how financial markets could operate going forward.
Ethereum, Solana, XRP, and Chainlink Positioned for the Trend
Bitwise’s report suggests that ETH, SOL, XRP, and LINK stand out as “clean” investment vehicles to gain exposure to the tokenization trend.
Ethereum’s role as the foundation for Arbitrum, Solana’s adoption by Kraken, the XRP Ledger’s use in real-world asset programs, and Chainlink’s role in connecting off-chain data to smart contracts make them logical candidates for long-term inclusion.
The note also emphasizes that diversifying across these crypto networks may be more effective than backing a single protocol. The analysts further referenced BlackRock CEO Larry Fink, who in his 2024 shareholder letter asserted that “every asset can be tokenized.”
With global stock and bond markets representing a combined $257 trillion, the total addressable market for tokenization is substantial.
The Bitwise analysts added that even modest adoption, 1% to 5% penetration, could translate into trillions of dollars flowing through blockchain ecosystems. Bitwise’s conclusion: the tokenization narrative, once considered speculative, may already be shaping the next major cycle in crypto markets.
Featured image created with DALL-E, Chart from TradingViewe
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
