What’s Next for Tokenization?
The post What’s Next for Tokenization? appeared on BitcoinEthereumNews.com.
To many of us in and around crypto, this time feels different. Tokenization of financial assets has arrived in ways that we haven’t previously seen. As we charge ahead, it’s important to zoom out, slow down—something our industry is not known for—and take a snapshot of today and where we are going tomorrow. Stablecoins Are Tokenization’s First Smash Hit While tokenization is revolutionary for financial markets, its adoption to date has been evolutionary. First, we had stablecoins as a more efficient means of payment. Then we had tokenized money market funds as a more efficient store of value. What’s next? Structured credit coupled with private funds. As with previous technological waves of adoption, tokenization will come slowly and then all at once. Buckle up: we are about to enter the vertical slope of the S-curve. Since the last crypto market cycle in 2021, stablecoins have demonstrated clear product-market fit. With more than $250 billion in circulating supply, stablecoins continue to demonstrate long-term demand and utility. That includes Tether and USDC for cross-border payments through companies such as MoneyGram, Stripe, PayPal, and Felix; overseas dollar access in emerging economies and those with weaker currency regimes such as Nigeria, Venezuela, Turkey, and others; and as the key trading pairs for crypto trades including Bitcoin and Ethereum. Regulatory clarity, particularly passage of the GENIUS Act in the U.S. covering stablecoins, can only accelerate this trend. The outsized demand for Circle’s stock following its IPO is another positive sign. Tokenized money market funds bring a technological and financial upgrade for storage of value on-chain. Market leaders including BUIDL, BENJI, ONDO, and others have shown there is clear demand for the risk-free rate onchain. That means not only as a collateral and treasury instrument, but also as a stablecoin substitute for crypto-native players that need…
Filed under: News - @ June 27, 2025 2:20 am