Key Insights
- Global banks and asset managers are launching tokenized funds and stablecoins directly on Ethereum’s blockchain.
- Ethereum Layer‑2 networks support cross‑border payments, AI agent payments, and 24/7 access to tokenized markets.
- Traditional financial products, including ETFs and money market funds, are increasingly issued and traded on Ethereum.
Ethereum institutional adoption is driving a wave of real-world financial infrastructure and services on the blockchain. Large banks, asset managers, and tech firms are building products and settlement systems on Ethereum, bringing traditional finance on-chain.
Why Are Institutions Choosing Ethereum for Tokenization?
Several key institutions have adopted Ethereum as their platform of choice for tokenized financial instruments.
Kraken introduced xStocks on the Ethereum platform, allowing for tokenized U.S. stocks and ETFs on an ERC-20 standard. Clients can deposit and withdraw fully collateralized stocks on-chain.
Ondo Finance introduced the Ondo Global Markets, which comes with more than 100 tokenized U.S. stocks and ETFs. This is combined with 24/7 programmable market access and lending and trading solutions from the DeFi space.
Traditional asset managers are also entering the Ethereum space. China AMC launched a Select USD Money Market Fund on Ethereum with 24/7 settlement.
Then came Fidelity with its FDIT tokenized money market fund, where fast on-chain settlement is combined with traditional financial instruments.
Global banks are testing settlement use cases on Ethereum. UBS, PostFinance, Sygnum, and the Swiss Bankers Association piloted Deposit Tokens, showing cross-bank settlement that is instant and programmable.
How Is Ethereum Powering Payments, Stablecoins, and Banking?
Ethereum institutional adoption is visible in payments and banking services. Stripe expanded crypto support to offer stablecoin-based subscriptions and billing, allowing companies to accept USDC with fast settlement.
American Express rolled out Amex Passport, issuing travel stamps in NFT form on Ethereum L2 Base. Openbank, Santander’s banking brand, provides ETH trading in Germany, enabling users to buy, sell, and hold ETH in their bank accounts.
Sony Bank is working on a stablecoin pegged to the USD on the Soneium network, which is built on the Ethereum network, to launch in early 2026. SoFi issued the first stablecoin from a retail bank in the US, SoFiUSD, on the Ethereum network.
The CFTC announced a pilot that permitted ETH, BTC, and USDC as collateral in derivatives markets. BlackRock and Morgan Stanley filed for Staked Ether ETFs to provide access to ETH’s native staking rewards in a regulated product.
TradFi Giants and Market Infrastructure Projects
Traditional finance institutions are adopting Ethereum infrastructure for market support beyond tokenization.
JPMorgan moved its tokenized deposit product, JPM Coin (JPMD), from a proprietary network to Base, an Ethereum layer 2 solution.
BlackRock, Mastercard, and FTI Global partnered with the ADI Foundation in the UAE to investigate tokenized assets and cross-border payments.
SWIFT and more than 30 banks are working on a blockchain ledger for tokenized assets and cross-border payments.
The large European custodian banks are also very active. FORGE, the lending and trading platform of the large French bank Société Générale, offered lending and trading solutions based on the Ethereum DeFi platforms Morpho and Uniswap.
Securitize and FGNexus issued the first NASDAQ-listed preferred equity entirely on
Expanding Asset Classes and Market Access
Institutional adoption on the Ethereum network has grown to incorporate diversified asset classes.
There has been the launch of the first S&P 500 Index Fund licensed by SPDJ Indices on Base by Centrifuge. There has been the development of a tokenized AAA-rated CLO fund on Ethereum by BNY Global and Securitize.
Amundi created a tokenized euro money market fund on the Ethereum mainnet. JPYC created a regulated yen-pegged coin, while Telcoin created eUSD, which is a regulated U.S. dollar stablecoin.
Google integrated on-chain prediction market data into search results on the Ethereum network.
Broadening Global Reach and Network Effects
Global initiatives are riding on the wave of Ethereum adoption to increase on-chain accessibility.
ADI Foundation’s L2, ADIChain, is hosting regulated stablecoins and is set to onboard more than one billion users on-chain in Asia, the Middle East, and Africa.
The foundation also collaborated with M-Pesa to link the biggest mobile money network in Africa to Ethereum networks.
Robinhood added 500 tokenized assets on Arbitrum, taking its network to almost 2,000 assets. The super app of Startale Group’s Soneium L2 offers wallets, assets, and rewards to mainstream users.
Final Thoughts
Ethereum institutional adoption continues to expand as banks, technology companies, and international payment systems develop solutions based on the blockchain technology offered by Ethereum. The development in infrastructure sees Ethereum at the forefront in linking traditional finance and blockchain technology.
