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From adolescence to adulthood, 2025 marked the year blockchain crossed from fringe to core financial infrastructure. Seventeen years after Bitcoin's release, the industry has found product-market fit and come of age: stablecoins and tokenization are rewiring legacy finance with institutions bridging liquidity to onchain capital markets.
As institutions continue to “tokenize everything” the distinction between onchain and off-chain asset classes are dissolving. The total value of tokenized real-world assets are over $426.44 billion with $18.91 billion (distributed) enabling direct investor management via custodians or self-custodial wallets. U.S. Treasuries are emerging as the base layer for the onchain economy. Stablecoins comprise over $298 billion worth of value, with Tether USDT and Circle USDC commanding 86% of market share. Tokenized U.S. Treasuries comprise $9 billion, dominated by BlackRock’s BUIDL, Circle’s USYC, Ondo’s OUSG, and Franklin Templeton’s BENJI.
From adolescence to adulthood, 2025 marked the year blockchain crossed from fringe to core financial infrastructure. Seventeen years after Bitcoin's release, the industry has found product-market fit and come of age: stablecoins and tokenization are rewiring legacy finance with institutions bridging liquidity to onchain capital markets.
As institutions continue to “tokenize everything” the distinction between onchain and off-chain asset classes are dissolving. The total value of tokenized real-world assets are over $426.44 billion with $18.91 billion (distributed) enabling direct investor management via custodians or self-custodial wallets. U.S. Treasuries are emerging as the base layer for the onchain economy. Stablecoins comprise over $298 billion worth of value, with Tether USDT and Circle USDC commanding 86% of market share. Tokenized U.S. Treasuries comprise $9 billion, dominated by BlackRock’s BUIDL, Circle’s USYC, Ondo’s OUSG, and Franklin Templeton’s BENJI.
Tokenized equities broke into the mainstream, surging from $10 million in December 2024 to over $750 million in December 2025 - a 75x increase. Tokenization providers, Ondo Global Markets, Backed Finance (xStocks), and Securitize now control over 95% of this market. Robinhood introduced tokenized equities on Arbitrum One for European clients while announcing plans for their own Layer-2 network to support 24/7 trading and self-custody. The rapid institutionalization of tokenized equities signals a fundamental shift in how traditional assets will be issued, traded, and held in the decades ahead.
SEC Chairman Paul Atkins predicts the entire U.S. financial market will move onchain within a “couple of years” - a notable signal of regulatory alignment with industry direction. The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC) received a no-action letter from the SEC to offer a new tokenization service, expected to be production-ready in the second half of 2026. DTCC’s subsidiaries were responsible for processing securities transactions worth $3.7 quadrillion and held custody of assets valued at $99 trillion in 2024. Assets tokenized by DTC will bridge TradFi and DeFi, enabling interoperability between blockchain-based and traditional liquidity pools – signaling large-scale tokenization efforts from traditional financial incumbents.
Global Systemically Important Banks (G-SIBs) are marching towards onchain capital markets. J.P. Morgan’s embrace of public blockchains signals a strategic shift for Wall Street. The JPM Coin is a USD-denominated deposit token institutional clients can transfer on the Base network, an Ethereum Layer-2 incubated by Coinbase, enabling transactions at the speed of the internet for a fraction of a cent. J.P. Morgan is also releasing their first tokenized money market fund, called the “My OnChain Net Yield Fund (MONY) on Ethereum. Banks such as JP Morgan command the largest distribution channels and could unlock new revenue streams and operational efficiencies by transitioning traditional “accounts” into blockchain-based wallets.
The onchain adoption curve is comparable to the internet’s trajectory in the mid-1990s. In 2025, monthly active users of digital assets increased to 40-70 million with 716 million owners of digital assets globally, and 181 million monthly active wallet addresses. The next unicorn may be the company who converts the 716 million global digital asset owners from holders to monthly active users. Stablecoins often called crypto’s “ChatGPT moment”, demonstrated the clearest product-market fit, executing over $46 trillion in total transaction volume ($9 trillion adjusted). The total stablecoin supply is over $298 billion with the majority of transaction volume settled on Ethereum and Tron. Stablecoins enable the U.S. government to export U.S. debt worldwide, slowing down the trend of de-dollarization from nations reducing their dependency on the U.S. Dollar, while decentralizing the ownership of U.S. debt from sovereign nations to individuals worldwide.
Stablecoins are often compared to the U.S. Free Banking Era of the 1800s, when private companies and state-chartered banks issued their own currencies. In 2025 Wyoming introduced the Frontier Stable Token (FRNT) - the first fully reserved, state-issued stablecoin or “stable token” in the United States. FRNT is live across several public blockchains including Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, Solana, and available on Rain's Visa-integrated card platform. Interest income generated from the reserves backing FRNT will be distributed to the ‘Wyoming School Foundation Program’ run by the state's Department of Education. Exemplifying a new model for funding public goods while creating a new revenue stream for education without raising taxes.
Dozens of companies including Bridge, Paxos, and federally chartered SoFi are unlocking new business models for Wall Street by delivering white-label stablecoin solutions for clients. Meanwhile, purpose-built “corporate blockchains” such as Circle’s Arc, Stripe’s Tempo, and Tether’s Plasma are tackling adoption and scalability challenges head-on, offering configurable privacy, zero-fee payments, and stablecoin-native gas. In 2025, stablecoin distribution shifted toward consumer wallets. MetaMask and Phantom, two of the largest self-custodial wallet providers, launched native stablecoins - mUSD (via Bridge/M0) and CASH (via Stripe Open Issuance), respectively. Wallets are rapidly evolving into full-fledged “everything apps”, embedding payments (via Visa and Mastercard), trading, lending, perpetuals, social activity, and stablecoins directly into their interfaces for everyday experiences. Legacy financial institutions and neobanks are positioned to become the interface layer for mainstream digital asset adoption.
The pieces are in place for blockchain integration in mainstream finance: institutional infrastructure from the world’s largest banks, regulatory frameworks taking shape, and consumer applications reaching usability thresholds. The question is no longer whether traditional finance will move onchain - but how quickly, and which players will capture the value created in the transition. Those who move decisively in 2026 will help shape the architecture of tomorrow's financial system and the next generation of the internet.
Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.
Tokenized equities broke into the mainstream, surging from $10 million in December 2024 to over $750 million in December 2025 - a 75x increase. Tokenization providers, Ondo Global Markets, Backed Finance (xStocks), and Securitize now control over 95% of this market. Robinhood introduced tokenized equities on Arbitrum One for European clients while announcing plans for their own Layer-2 network to support 24/7 trading and self-custody. The rapid institutionalization of tokenized equities signals a fundamental shift in how traditional assets will be issued, traded, and held in the decades ahead.
SEC Chairman Paul Atkins predicts the entire U.S. financial market will move onchain within a “couple of years” - a notable signal of regulatory alignment with industry direction. The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC) received a no-action letter from the SEC to offer a new tokenization service, expected to be production-ready in the second half of 2026. DTCC’s subsidiaries were responsible for processing securities transactions worth $3.7 quadrillion and held custody of assets valued at $99 trillion in 2024. Assets tokenized by DTC will bridge TradFi and DeFi, enabling interoperability between blockchain-based and traditional liquidity pools – signaling large-scale tokenization efforts from traditional financial incumbents.
Global Systemically Important Banks (G-SIBs) are marching towards onchain capital markets. J.P. Morgan’s embrace of public blockchains signals a strategic shift for Wall Street. The JPM Coin is a USD-denominated deposit token institutional clients can transfer on the Base network, an Ethereum Layer-2 incubated by Coinbase, enabling transactions at the speed of the internet for a fraction of a cent. J.P. Morgan is also releasing their first tokenized money market fund, called the “My OnChain Net Yield Fund (MONY) on Ethereum. Banks such as JP Morgan command the largest distribution channels and could unlock new revenue streams and operational efficiencies by transitioning traditional “accounts” into blockchain-based wallets.
The onchain adoption curve is comparable to the internet’s trajectory in the mid-1990s. In 2025, monthly active users of digital assets increased to 40-70 million with 716 million owners of digital assets globally, and 181 million monthly active wallet addresses. The next unicorn may be the company who converts the 716 million global digital asset owners from holders to monthly active users. Stablecoins often called crypto’s “ChatGPT moment”, demonstrated the clearest product-market fit, executing over $46 trillion in total transaction volume ($9 trillion adjusted). The total stablecoin supply is over $298 billion with the majority of transaction volume settled on Ethereum and Tron. Stablecoins enable the U.S. government to export U.S. debt worldwide, slowing down the trend of de-dollarization from nations reducing their dependency on the U.S. Dollar, while decentralizing the ownership of U.S. debt from sovereign nations to individuals worldwide.
Stablecoins are often compared to the U.S. Free Banking Era of the 1800s, when private companies and state-chartered banks issued their own currencies. In 2025 Wyoming introduced the Frontier Stable Token (FRNT) - the first fully reserved, state-issued stablecoin or “stable token” in the United States. FRNT is live across several public blockchains including Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, Solana, and available on Rain's Visa-integrated card platform. Interest income generated from the reserves backing FRNT will be distributed to the ‘Wyoming School Foundation Program’ run by the state's Department of Education. Exemplifying a new model for funding public goods while creating a new revenue stream for education without raising taxes.
Dozens of companies including Bridge, Paxos, and federally chartered SoFi are unlocking new business models for Wall Street by delivering white-label stablecoin solutions for clients. Meanwhile, purpose-built “corporate blockchains” such as Circle’s Arc, Stripe’s Tempo, and Tether’s Plasma are tackling adoption and scalability challenges head-on, offering configurable privacy, zero-fee payments, and stablecoin-native gas. In 2025, stablecoin distribution shifted toward consumer wallets. MetaMask and Phantom, two of the largest self-custodial wallet providers, launched native stablecoins - mUSD (via Bridge/M0) and CASH (via Stripe Open Issuance), respectively. Wallets are rapidly evolving into full-fledged “everything apps”, embedding payments (via Visa and Mastercard), trading, lending, perpetuals, social activity, and stablecoins directly into their interfaces for everyday experiences. Legacy financial institutions and neobanks are positioned to become the interface layer for mainstream digital asset adoption.
The pieces are in place for blockchain integration in mainstream finance: institutional infrastructure from the world’s largest banks, regulatory frameworks taking shape, and consumer applications reaching usability thresholds. The question is no longer whether traditional finance will move onchain - but how quickly, and which players will capture the value created in the transition. Those who move decisively in 2026 will help shape the architecture of tomorrow's financial system and the next generation of the internet.
Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.
Share Dialog
Alex Enser
Share Dialog
Alex Enser
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