A recent analysis by FBS highlights Ethereum's changing role in the financial sector, transforming it from a speculative cryptocurrency to a core infrastructure for traditional finance.
Financial Backbone of Wall Street
According to FBS, Ethereum has become a financial backbone for Wall Street, as indicated by billionaire Peter Thiel's support for ETH-focused treasuries. Thiel's Founders Fund owns 7.5% of ETHzilla and 9.1% of BitMine Immersion Technologies, confirming institutional investors' interest in Ethereum as core financial infrastructure.
Impact of Staking and Its Significance
FBS also noted that Ethereum's staking economy has played a crucial role in its transformation, with over $170 billion in ETH staked. The assets are comparable to bonds with an annual yield of 3-4%, making them attractive for pension funds and corporate treasuries seeking stable income streams.
Future of Asset Tokenization
Experts highlighted that Ethereum's layer-2 solutions, such as Arbitrum and Optimism, process about 12-14 million transactions daily, surpassing Ethereum's own mainnet. This opens the door for tokenization of real-world assets (RWA) backed by major institutions like JPMorgan and BlackRock. Tokens that could benefit from this institutional shift include Arbitrum (ARB), Chainlink (LINK), and Lido (LDO).
With Ethereum's expansion, scaling solutions, and tokenization, it is well-positioned to become a foundational part of Wall Street's financial infrastructure.
