Institutional enthusiasm for blockchain based finance is accelerating, but many traditional investors remain hesitant to reposition their portfolios. According to Bitwise Asset Management Chief Investment Officer Matt Hougan, financial markets are steadily moving on-chain even as skepticism lingers across the broader investment community.
Institutional Crypto Adoption and Tokenization Growth
Major financial firms are increasingly experimenting with tokenization and stablecoin infrastructure. The value of tokenized real world assets including US Treasurys and commodities is nearing $20 billion, more than quadrupling throughout 2025. Hougan argues this growth trajectory signals a structural shift rather than a short-term trend.
Support from US regulators has also strengthened the narrative. The U.S. Securities and Exchange Commission launched “Project Crypto” in July under Chair Paul Atkins, aiming to enable financial markets to transition onto blockchain infrastructure.
Large institutions are taking concrete steps. BlackRock and Apollo Global Management have introduced tokenized investment products worth billions, while major banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are reportedly exploring stablecoin initiatives.
Market Opportunity Amid Perception Gap
Despite mounting institutional activity, many investors remain anchored to crypto’s early reputation. Hougan suggests this disconnect creates opportunity, as hundreds of trillions of dollars across ETFs, equities and bonds represent potential long-term tokenization markets.
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.