Wall Street Is Going On-Chain, And Investors Still Don’t Get It, Says Bitwise CIO
Bitwise’s Chief Investment Officer Matt Hougan believes there’s a basic disconnect between notion and actuality within the crypto market. He argued that buyers usually misread what is really occurring as a result of behavioral biases, notably anchoring bias, distort their view.
Anchoring bias, the tendency to fixate on the primary piece of knowledge encountered, shapes how folks consider alternatives. This leads them to chubby preliminary impressions even when new proof emerges. Hougan acknowledged that this issue performed a key position in his personal entry into crypto in 2018.
Tokenization Is Exploding
In his newest memo, Hougan stressed that Wall Street is transferring on-chain and pointed to a number of concrete developments. Paul Atkins launched “Project Crypto,” a commission-wide initiative geared toward modernizing securities regulation in order that US markets can function on-chain. Larry Fink said the trade is coming into the early levels of tokenizing all belongings. BlackRock adopted that view by launching its $2 billion BUIDL tokenized Treasury fund on Uniswap. Apollo tokenized its $700 billion Diversified Credit Fund throughout six blockchains and introduced plans to amass a stake in Morpho.
Additionally, main banks, reminiscent of JPMorgan, Bank of America, Citigroup, and Wells Fargo, are discussing a joint stablecoin. JPMorgan has already launched a deposit token on Base. Fidelity is hiring a DeFi vaults supervisor.
Despite these initiatives, the Bitwise exec mentioned that conventional buyers fail to register these adjustments. Even crypto buyers themselves, he added, exhibit fatigue from repeated claims of institutional adoption. Data, nevertheless, tells a unique story.
Where Does the Value Go?
Tokenized real-world belongings have grown sharply from 2020 to 2025. Hougan warned that whereas the chance is obvious, the precise path to seize it’s unsure. Questions stay about whether or not worth from tokenization will accrue to public Layer 1 networks like Ethereum and Solana, to quasi-private blockchains reminiscent of Canton Network and Tempo, to DeFi tokens, or to corporations constructing within the ecosystem, together with incumbents like BlackRock and JPMorgan, versus crypto-native companies.
“The greatest alpha alternatives come when the consensus narrative is stale and actuality has moved on, however buyers are nonetheless anchored on the previous story. That’s precisely the place we’re with crypto immediately. “
Meanwhile, crypto analytics platform Presto Research expects tokenization to be a central driver of crypto’s subsequent institutional section. In its 2026 outlook, the agency projected that the mixed worth of tokenized real-world belongings and stablecoins will strategy $490 billion by the tip of 2026.
The report additionally noticed that progress will probably be fueled by demand for tokenized US Treasury payments and credit score devices.
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