Ethereum News Today: Ethereum Becomes the Programmable Backbone of Institutional Finance

Ethereum continues to consolidate its position as the leading blockchain for tokenized real-world assets (RWA), with data indicating that the network accounts for 72% of the total $7.5 billion in tokenized RWAs in circulation, including $5.3 billion in tokenized U.S. Treasury bonds. This dominance is further reinforced by Ethereum’s Layer 2 solutions, such as Polygon, Arbitrum, Mantle, and Optimism, which together bring the network’s share in tokenized assets up to 85%. The platform’s liquidity depth, composability with DeFi protocols, and regulatory-compliant standards like ERC-1400 and ERC-3643 are cited as key factors attracting institutional investors seeking efficient and programmable capital deployment [1].

Institutional adoption of Ethereum-based tokenization has accelerated in recent months, with major asset managers including BlackRock, Apollo, VanEck, and Hamilton Lane launching Ethereum-backed funds. BlackRock’s BUIDL fund, for instance, has surpassed $2.4 billion in value, becoming the largest tokenized Treasury product globally. Apollo’s ACRED private credit fund, VanEck’s VBILL Treasury, and Hamilton Lane’s SCOPE vehicle also underscore Ethereum’s expanding footprint in institutional finance. Tokenization platform Securitize, which has minted over $3.36 billion in tokenized assets, attributes 85% of its value to Ethereum and its Layer 2 solutions, further validating the network’s role in RWA infrastructure [1].

Ethereum’s dominance is also reflected in the tokenized institutional alternative funds (IAFs) market, where it holds over half of the total $1.74 billion in value, according to RWA.xyz. The data reveals that Ethereum hosts $1 billion in tokenized IAFs, far ahead of Mantle and ZKsync Era, which account for $218.8 million and $214.8 million, respectively. Centrifuge, which has grown its IAF market cap by 252% to $704 million, now holds a 40.4% share in this segment, while Securitize maintains a 37.5% market share with $652 million across 14 IAFs. The surge in tokenized IAFs has occurred despite a decline in monthly active addresses, suggesting that professional investors and institutions are consolidating holdings and displaying long-term confidence in the asset class [2].

Tokenized IAFs are investment vehicles that allocate capital to non-traditional assets like private equity, private credit, and real estate. By bringing these funds onto the blockchain, tokenization facilitates faster settlement, broader access for investors, and enhanced transparency. Industry experts predict that the next phase of evolution will involve integrating equities and credit instruments into DeFi protocols, further boosting liquidity and capital efficiency. Securitize CEO Carlos Domingo anticipates that 2025 will mark a turning point for RWAs, with programmability, daily dividend payouts, and rapid settlement emerging as critical differentiators from traditional markets [1].

With trillions in potential assets poised for tokenization, Ethereum is viewed as the central infrastructure for the future of RWA. Its programmable smart contracts, regulatory compatibility, and institutional-grade security offer a compelling case for long-term growth. Analysts highlight that the network’s role in enabling innovative financial models—such as daily dividend distributions and tokenized private credit—could redefine asset management and attract even more institutional participation. As the RWA market matures, Ethereum’s role as the backbone of this ecosystem appears increasingly entrenched [1].

Source:

[1] Ethereum Dominates Tokenized RWA Market with 72 Share (https://crypto-economy.com/ethereum-dominates-tokenized-rwa-market-with-72-share/)

[2] Tokenized institutional alternative funds surge rwa (https://cointelegraph.com/news/tokenized-institutional-alternative-funds-surge-rwa)