Institutions now view blockchain-based tokenization as a standalone innovation, signaling a maturing crypto ecosystem.
Institutional Interest in Tokenization Grows Beyond Bitcoin Price
Institutional demand for tokenization — the process of representing real-world assets such as bonds or commodities on blockchain networks — is now independent of Bitcoin’s market cycles, according to Thomas Cowan, head of tokenization at Galaxy.
Speaking at The Bridge Conference in New York, Cowan explained that previous crypto bull runs often fueled temporary enthusiasm for blockchain applications, which faded when markets cooled. However, this time, the momentum appears structural and sustained.
“In previous cycles, as Bitcoin and other alts ran up, traditional institutions expanded their tokenization teams — and when prices crashed, those teams got smaller,” Cowan said.
Thomas Cowan speaking at an Aptos event in New York City on Wednesday. : YouTube
Blockchain’s Utility Becomes Clear to Institutions
Tokenization has gained significant traction in the past year as more financial institutions recognize its efficiency, transparency, and cost benefits. Cowan emphasized that institutions are no longer treating tokenization as an experimental concept tied to crypto speculation, but as a core part of financial infrastructure.
“For these large organizations that think in decades, we need to demonstrate the clear, long-term benefits,” he said. “They see this technology as the future backend of their financial systems, not just a passing trend.”
This shift comes amid a broader wave of regulatory clarity in the United States, which has encouraged firms to explore blockchain-based solutions for traditional finance operations.
Stablecoins and Tokenized Funds: The Next Wave
Cowan highlighted stablecoins and tokenized money market funds as two segments showing explosive growth. The recent U.S. legislation providing clearer rules for stablecoins has prompted institutions to explore these digital representations of fiat value more aggressively.
“Stablecoins are off to the races,” Cowan noted. “As people move capital onchain, they want that risk-free rate they’re missing when they hold stables — so money market tokenization is the next logical step.”
Tokenized funds, which hold short-term government securities, are becoming a favored onchain investment vehicle among institutional players looking for regulated, yield-bearing digital assets.
A Transformative Moment for Finance
Cowan believes the industry is now at a turning point, where tokenization is poised to prove its value to long-standing financial institutions that previously remained cautious.
“This is the time to invest,” he said confidently. “In the next couple of years, institutions will finally see that tokenization is transformative, not theoretical.”
The Bigger Picture
As Bitcoin fluctuates — recently dropping around 20% from its October peak of $126,000 to near $102,000 — institutional engagement with blockchain continues to rise. This decoupling of tokenization demand from crypto prices marks a critical milestone for the industry, suggesting that blockchain’s role in global finance is no longer speculative — it’s strategic and inevitable.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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