Ethereum News Today: Institutions and Regulators Align to Spark $100T Onchain Market by 2030

The onchain capital market, currently valued at $4.6 trillion, could balloon to over $100 trillion by 2030 as tokenization gains momentum, according to a new report by TD Cowen . The bank attributes this potential leap to rapid institutional adoption, regulatory alignment, and the practical advantages of blockchain-based assets.

Tokenization-representing traditional assets like stocks, real estate, and bank deposits on distributed ledgers-is being hailed as a transformative force in finance. TD Cowen analysts highlight that major institutions, including JPMorgan, Bank of America, and Euroclear, are converging on common blockchain protocols to streamline cross-border transactions, reduce settlement times, and integrate programmable finance into capital markets infrastructure . The bank also points to the rising role of staked assets, such as ether, as a key driver of yield generation in onchain capital formation.

Regulatory and policy developments are further accelerating the trend. The U.K. has announced plans to appoint a "digital markets champion" to coordinate tokenization across wholesale markets, while the U.S. and U.K. launched the Transatlantic Taskforce for Markets of the Future . This initiative aims to harmonize digital asset regulations, including stablecoin oversight, to reduce cross-border compliance burdens and foster innovation . The task force, co-chaired by HM Treasury and the U.S. Treasury, will deliver recommendations within 180 days, signaling a political commitment to aligning financial frameworks.

Institutional demand for tokenized assets is also surging. A State Street survey found that most institutional investors expect their digital-asset exposure to double within three years, with over half anticipating 10%–24% of their portfolios will be tokenized by 2030 . Robinhood's CEO has similarly predicted widespread tokenization frameworks by 2030. Meanwhile, firms like BlackRock and BNY Mellon are piloting tokenized funds and deposits, signaling a shift from theoretical exploration to real-world implementation .

Ethereum's ecosystem is central to this evolution. Over 36 million ETH is currently staked, representing nearly 30% of the total supply, with liquid staking tokens (LSTs) like stETH and rETH enabling users to earn yield while maintaining liquidity . TD Cowen's analysts note that Ethereum's transaction volumes have hit a 12-month peak, driven by staking activity and DeFi adoption . However, regulatory uncertainty around LSTs persists, with the SEC's recent guidance on their securities status drawing both praise and criticism from commissioners .

Despite challenges, TD Cowen remains bullish. "Political and regulatory progress has far exceeded expectations," the report states, emphasizing that shared standards among institutions could catalyze a "massive inflection" in onchain capital adoption . The U.K.'s Financial Conduct Authority (FCA) has also signaled support, consulting on tokenized fund structures and "direct-to-fund" trading models to modernize asset management .

As the industry navigates regulatory and technical hurdles, the stage is set for tokenization to redefine global finance. With institutional backing, policy alignment, and Ethereum's maturing infrastructure, the path to a $100 trillion onchain market appears increasingly plausible.

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[1] This is the Full Title of the First News Article (https://www.theblock.co/post/374714/td-cowen-sees-onchain-capital-surpassing-100-trillion-in-five-years-amid-tokenization-push)

[4] Transatlantic Taskforce Signals a New Era of UK-US Crypto Regulatory Cooperation (https://www.morganlewis.com/pubs/2025/09/transatlantic-taskforce-signals-a-new-era-of-uk-us-crypto-regulatory-cooperation)

[5] FCA: UK could be 'world leader' in tokenisation - FTAdviser (https://www.ftadviser.com/regulation/2025/10/14/fca-uk-could-be-world-leader-in-tokenisation/)

[6] Crypto Regulation News Today: U.S. and UK Plan Joint Crypto (https://coinpedia.org/news/crypto-regulation-news-today-u-s-and-uk-plan-joint-crypto-framework/)

[10] Ethereum Transaction Volumes Hit Yearly High (https://cryptoweekly.co/news/ethereum-transaction-volume-yearly-high/)