Ethereum News Today: Ethereum's Wall Street Takeover: Why Banks Bet Big on Smart Contracts

VanEck CEO Jan van Eck has positioned Ethereum as the preferred blockchain for Wall Street’s stablecoin infrastructure, asserting that the platform will dominate the settlement layer as banks and financial institutions adapt to the growing use of stablecoins. During an interview with Fox News Business, van Eck emphasized that Ethereum’s infrastructure, built on smart contracts and programmable money, makes it uniquely suited to handle the large-scale adoption of stablecoins moving forward [3]. His remarks align with the recent passage of the GENIUS Act, the first U.S. federal law specifically addressing payment stablecoins, which has further solidified the role of Ethereum in the institutional and regulatory landscape [3].

Ethereum has seen significant institutional interest in recent months, with corporate treasuries investing heavily in ether. Over the past month alone, firms such as SharpLink Gaming, BitMine Immersion Technologies, and EthZilla have collectively acquired over $6 billion worth of ether, indicating a growing acceptance of the asset as part of traditional corporate balance sheets [2]. This trend has been accompanied by a surge in demand for Ethereum-based ETF products. VanEck, for example, launched an ether ETF in July 2024, and the fund now holds over $284 million in assets [3]. The product does not hold ether directly but tracks its price, offering institutional investors a regulated and accessible avenue to exposure to the token.

Ethereum’s price has also reached new heights, with ether briefly hitting a record high above $4,946 in early August 2025 [2]. The token has surged more than 200% from its April lows, outpacing bitcoin’s 45% gain in the same period. Analysts attribute this performance to a combination of regulatory clarity, increased institutional adoption, and the growing role of Ethereum as a settlement layer for stablecoin transactions. According to Fireblocks, 90% of institutional players surveyed are exploring the use of stablecoins in their operations, with Ethereum being the most viable option for integration [3].

The growing importance of Ethereum as a stablecoin settlement layer has been highlighted by Bernstein analyst Gautam Chhugani, who noted that nearly 52% of stablecoin supply is currently on the Ethereum network [1]. Despite this, some critics, including investor Fred Krueger, argue that Ethereum is facing stiff competition from TRON, which has surpassed Ethereum in USDT supply and handles significantly higher daily volumes. As of August 2025, TRON’s USDT supply stood at $80.8 billion, compared to Ethereum’s $73.8 billion [4]. However, van Eck and other institutional voices maintain that Ethereum’s robust infrastructure, smart contract capabilities, and existing DeFi ecosystem provide a more secure and scalable foundation for long-term adoption [3].

In the broader market, investor sentiment has shifted toward Ethereum, with flows into ETH-linked products outpacing those of bitcoin. This has contributed to a pullback in bitcoin prices, which are currently trading below their mid-August peak of $124,000 [1]. Meanwhile, Ethereum continues to attract both speculative and strategic investment, with major players such as VanEck advocating for its role in the future of global financial infrastructure. As the market evolves, Ethereum’s ability to adapt and maintain its leadership in both institutional and on-chain activity will be critical to its long-term success.

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[1] Ethereum rally continues as recent crypto softness puts bitcoin price at inflection point (https://finance.yahoo.com/news/ethereum-rally-continues-as-recent-crypto-softness-puts-bitcoin-price-at-inflection-point-183003036.html)

[2] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high)

[3] Ethereum is very much 'the Wall Street token,' VanEck CEO says (https://cointelegraph.com/news/vaneck-ceo-calls-ethereum-the-wall-street-token)

[4] Ethereum nowhere close to TRON's stablecoin dominance, Fred Krueger argues (https://www.ccn.com/news/crypto/ethereum-tron-stablecoin-dominance-fred-krueger/)