Industry Leaders Bullish on Stablecoins, Tokenization Gains Momentum

There is a growing optimism around stablecoins and tokenization, with industry leaders expressing bullish sentiments on the potential of these digital assets. Felix, a prominent figure in the digital asset space, emerged from the Digital Asset Summit with a strong belief in the future of stablecoins. This sentiment is echoed by Mike Novogratz, CEO of Galaxy, who highlighted stablecoins as a key area of focus for the firm in 2025. Novogratz emphasized the role of stablecoins in payments and cross-border transactions, noting that they represent the first real-world asset to be tokenized. He also predicted that the tokenization of other assets, such as mortgages, collectibles, and equities, is on the horizon.

Novogratz compared the adoption of tokenization to a slow-moving process that will eventually accelerate rapidly. He noted that traditional financial institutions are preparing for this shift, and the crypto world is actively working towards it. The lack of regulatory clarity has been a barrier to the promise of crypto in boosting efficiency and transparency, but this is changing as more regulatory frameworks are being established.

Galaxy is reportedly close to launching a euro-denominated stablecoin in collaboration with DWS and Flow Traders. The firm's investment in GK8 positions it as an infrastructure technology provider in the stablecoin category, as adoption continues to grow. Additionally, Intercontinental Exchange, the parent company of the NYSE, announced plans to explore the use of Circle’s stablecoin and Hashnote’s tokenized money fund USYC within its derivatives exchanges, clearinghouses, and data services. This move underscores the growing acceptance of stablecoins in capital markets.

Fidelity is also reportedly exploring the launch of a stablecoin, adding to the list of developments in the US stablecoin legislation, which is expected to be introduced as soon as this summer. The Digital Asset Summit (DAS) featured extensive discussions on stablecoins and real-world assets (RWAs). Michael Sonnenshein, chief operating officer of Securitize, highlighted the significance of stablecoins in the crypto ecosystem and the emergence of onchain assets that offer stable value and yield. He noted that the conversation around these assets is gaining traction among OTC desks, market makers, and other participants in the crypto space.

Ian De Bode of Ondo Finance pointed out that tokenized money market funds (MMFs) and Treasurys, such as BUIDL and Ondo’s OUSG, demonstrate the benefits of onchain assets to legacy institutions. These benefits include 24/7 movement and programmability, which could encourage traditional financial institutions to develop their own offerings. Industry executives have noted the complementary nature of tokenized MMFs/Treasurys and stablecoins, with Circle’s acquisition of Hashnote in January highlighting the demand for moving between yield-bearing collateral and cash.

Staci Warden, CEO of the Algorand Foundation, emphasized the interdependence of tokenization and stablecoins, stating that tokenization cannot exist without stablecoins. She envisioned a future where tokenized MMF slivers could be used for everyday transactions, such as buying a coffee, with the recipient earning the yield tied to the fund. This blurring of the continuum between different types of assets and their liquidity is seen as a powerful combination that will drive the adoption of tokenization and stablecoins.