Is TradFi Ready for On-Chain Finance?
The post Is TradFi Ready for On-Chain Finance? appeared on BitcoinEthereumNews.com.
The world of traditional finance (TradFi) is on the cusp of a profound transformation, driven by the relentless innovation of blockchain technology. While the introduction of Bitcoin ETFs marked a significant milestone, it was merely the first step. The real convergence, where TradFi’s vast capital meets the efficiency and transparency of decentralized finance (DeFi) is now taking shape. The crucial question, however, remains: is TradFi truly ready for on-chain finance? Beyond ETFs: The Next Wave of Institutional Capital The initial flow of institutional capital into crypto was a trickle, the next will be a flood, and it won’t be driven solely by new ETFs. According to Monty Metzger, CEO & Founder of LCX, the most significant on-ramp will be the tokenization of real-world assets (RWAs). “The next wave of institutional capital will come not from new ETFs, but from tokenized real-world assets, bonds, credit, commodities, where yield meets compliance,” he states. This sentiment is echoed by a fund, which has already surpassed $1 billion in assets under management (AUM). This shift is not just speculative, it’s backed by powerful projections. Markus Levin, Co-Founder of XYO, cites a Standard Chartered report predicting that the RWA market could grow to a staggering $30 trillion by 2034. He also mentions a World Economic Forum projection that the Decentralized Physical Infrastructure Networks (DePIN) market, a subcategory of RWAs is expected to grow to $3.5 trillion by 2028. This paradigm shift, as Levin explains, will see the global economy itself moving on-chain, with projects like XYO’s DePIN network already leading the charge with over 10 million nodes. Another critical catalyst for institutional entry is the maturation of stablecoins. With regulatory clarity emerging from frameworks like the EU’s MiCA and the U.S. Stablecoin Bill, banks and payment providers are gaining the confidence to issue and utilize…
Filed under: News - @ August 7, 2025 7:27 am