Ethereum cryptocurrency may be the next big treasury asset in the $5 billion tokenization frenzy.
Ethereum’s reputation as a treasury asset is being enhanced by its increasing dominance in RWA tokenization.
Ethereum (ETH) is rapidly becoming a prominent platform for tokenized assets. Notably, treasuries and other physical assets totaling more than $5 billion in RWAs are currently maintained on Ethereum. Ray Youssef, the CEO of NoOnes, described how this is creating new opportunities for ETH in a comment that was shared with crypto.news.
From institutional-grade stablecoin rails to tokenized U.S. treasuries, Ethereum is emerging as the de facto layer for on-chain, compliant banking. In line with its “digital oil” narrative, businesses are recognizing that ETH serves as both a strategic store of value and a utility network, according to Ray Youssef of NoOnes.
Ethereum’s usefulness as the “gas” driving its vast decentralized finance ecosystem, which includes layer 2 networks, is the basis for the term “digital oil.” Beyond tokenized assets, the network dominates a broad spectrum of decentralized finance applications in addition to stablecoin issuance.
Franklin Templeton and BlackRock jump on Ethereum
Ethereum’s appeal as a treasury asset is also being enhanced by a number of other developments. One is the change in tokenomics within the network, which includes native staking and deflationary fee burning. Because of this structure, which blends yield with scarcity, Ethereum is a more desirable treasury holding.
Additionally, Ethereum regulations are becoming more clear, especially with regard to exchange-traded products that are based on ETH. With Ethereum becoming more well-known alongside Bitcoin (BTC), major financial institutions like Franklin Templeton and BlackRock are already following the trend.
The risk premium is decreasing as a result of the SEC indicating greater latitude regarding ETH-based ETFs and companies like Franklin Templeton and BlackRock actively engaging in creating tokenized securities on Ethereum. Ethereum is gradually becoming the institutional alternative to Bitcoin in this setting. Youssef Ray, NoOnes.
Ethereum is useful as a fundamental asset in compliant decentralized finance, even though it might not be able to completely replace Bitcoin as an inflation hedge. Youssef included
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