Tokenization Demand Decouples from Bitcoin Volatility

At The Bridge conference in New York, Galaxy Digital’s Head of Tokenization, Thomas Cowan, confirmed that institutional tokenization demand has fully decoupled from Bitcoin volatility. While rising BTC prices once drove banks and asset managers to set up tokenization teams, institutions now independently invest in blockchain solutions for traditional assets. Tokenization assets under management surged over 300% year-on-year in 2025, led by regulated stablecoins and tokenized money market funds. Recent U.S. regulatory easing has clarified compliance for stablecoin issuance and on-chain fund structures, boosting institutional confidence. Major finance firms such as Franklin Templeton are rolling out interoperable tokenization platforms, enabling seamless asset transfers and 24/7 market access. Experts predict tokenization could handle trillions in value in the coming years, thanks to cost savings, faster settlement and round-the-clock liquidity. Cowan emphasizes that tangible benefits – speed, efficiency and lower costs – will secure tokenization’s long-term role in finance. Traders should monitor on-chain volumes of stablecoins and fund tokens as indicators of growing institutional inflows into blockchain markets.