Tokenization Explosion: Why Ethereum Is Suddenly Wall Street’s Favorite Blockchain

Forget gold and government bonds—the real asset rush is happening on-chain. A tidal wave of tokenization is sweeping through finance, and Ethereum's network is sitting squarely in the driver's seat.

The Infrastructure Play of the Decade

While other chains scramble for niche use cases, Ethereum is becoming the default settlement layer for real-world assets. Everything from treasury bills to fine art is getting a digital twin, and these tokens aren't settling on spreadsheets—they're living on smart contracts. The network's robust security and deep liquidity pools make it the obvious choice for institutions dipping their toes, or rather, diving headfirst, into decentralized finance.

Liquidity Unlocked (And Legacy Systems Bypassed)

Tokenization cuts out the traditional middlemen—the custodians, transfer agents, and paper-pushers that slow everything down and take their cut. Assets that once traded by appointment can now move 24/7. It's creating markets where none existed, proving that sometimes the most revolutionary finance isn't a new product, but a new way of owning the old ones. Of course, this has legacy banks scrambling to build their own permissioned chains—a classic move of trying to reinvent the wheel while ignoring the open highway right next to them.

The Bullish Case Beyond Speculation

This isn't just about crypto degens chasing the next meme coin. This is about fundamental utility driving network demand. Every tokenized asset means more transactions, more smart contract interactions, and more value anchored to the Ethereum ecosystem. It transforms ETH from a mere speculative asset into the gas powering a new global financial engine.

The tokenization boom isn't coming—it's here. And it's painting a target on the slow, expensive, and exclusive world of traditional finance. Ethereum, whether the old guard likes it or not, is holding the brush. Just don't expect the suits to admit they're using the same technology as your average NFT collector—some egos are harder to tokenize than others.

In brief

• Ethereum is taking a central place in traditional finance thanks to the rise of tokenization.
• Tom Lee (Fundstrat) states that Ethereum is becoming a reference infrastructure for Wall Street.
• Giants like BlackRock, Robinhood, and DTCC are actively exploring blockchain tokenization.
• Ethereum dominates the tokenized real assets market, hosting over $12 billion on its network.

Tokenization : a transformation lever for Ethereum

Tom Lee, co-founder of Fundstrat Global Advisors, revealed this week on CNBC Ethereum’s growing role in institutional finance.

According to him, the blockchain is no longer limited to decentralized applications or NFTs, but is becoming a true technological foundation for traditional financial markets. “Wall Street wants to tokenize everything it can“, he said on the show Power Lunch, referring to initiatives already underway by heavyweights such as BlackRock and Robinhood.

He believes Ethereum is well positioned to capture this emerging demand : “Ether is becoming a reference financial infrastructure“.

This evolution is confirmed in the most recent data published by RWA.xyz, showing strong growth in tokenized real-world assets over this year. Ethereum largely dominates this rapidly expanding segment, strengthening its status as leader.

Here are the key points to remember :

• The total value of tokenized RWAs rose from $5.6 billion at the start of 2025 to $18.9 billion in December ;

• Ethereum alone holds more than $12 billion of these assets, far ahead of other blockchains like Solana, Arbitrum, or BNB Chain ;

• The main RWA segment is represented by U.S. sovereign debt totaling about $8.5 billion ;

• Currently, DTCC (Depository Trust & Clearing Corporation) has announced plans to tokenize some Treasury bonds held via its subsidiary Depository Trust Company, on the Canton Network ;

• Furthermore, Ethereum remains the leading blockchain for stablecoins, with approximately $170 billion issued to date.

These data confirm that tokenization has now surpassed the experimental stage. It is part of a concrete institutional adoption dynamic, in which Ethereum plays a key role as a trusted infrastructure.

Tom Lee Bets on an Ethereum Price Explosion by 2026

Beyond the observations, Tom Lee laid out a particularly ambitious price projection for Ethereum.

“We believe Ether can reach between $7,000 and $9,000 by early 2026“, he stated during his appearance. For him, this evolution WOULD only be the first step, as “the price could rise up to $20,000 as adoption expands“. This scenario is based on one hypothesis: the more tokenization progresses, the more Ethereum establishes itself as a trusted infrastructure, and the more demand grows for this network’s native asset.

Tom Lee is no stranger to betting on the Ethereum crypto. He is also president of BitMine Immersion Technologies, a treasury company specializing in ETH, which holds over 4 million Ether.

This significant exposure gives weight to his convictions but also shows that his analysis is not disinterested. Moreover, he remains bullish on Bitcoin, which he describes as a “true store of value” with a target of $200,000 for 2026, while distinguishing Ethereum’s growing utility role in financial markets.

Ethereum’s trajectory swings between institutional ambition and structural challenges. While Tom Lee bets on massive crypto adoption, Vitalik Buterin advocates for a simpler Ethereum. A balance to find, as the platform becomes central to tokenization strategies.

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