35 Major Firms — Including BlackRock, JPMorgan — Launch Tokenized Finance on Ethereum
Thirty-five leading financial and technology firms, including BlackRock, JPMorgan, Fidelity, Kraken, Ondo Finance, Amundi and Societe Generale FORGE, have launched tokenized finance products and services built directly on the Ethereum blockchain. Announced via the Ethereum X account, initiatives span tokenized U.S. stocks and ETFs (Kraken xStocks; Ondo), tokenized money market funds (Fidelity’s FDIT; China Asset Management HK; Amundi), stablecoins and bank deposit tokens (SoFiUSD; JPM Coin moved to Base), and payments tooling using USDC (Stripe) and an agent payments protocol (Google with Ethereum Foundation and Coinbase). JPMorgan seeded a tokenized money market fund with $100 million of its own capital. Network metrics show rising on-chain activity: staking surpassed 30% of supply (~36.2M ETH locked) and daily wallet creation recently hit a record (~394k new addresses). Ethereum co-founder Vitalik Buterin cautioned that growing protocol complexity may threaten long-term security and self-sovereignty, highlighting a trade-off between institutional adoption and protocol simplicity. Primary keywords: Ethereum, tokenization, tokenized stocks, stablecoins, money market funds. The trend positions Ethereum and its Layer 2s as settlement layers for regulated real-world assets (RWAs) and institutional payments, with implications for liquidity, on-chain volumes, and regulatory scrutiny.
Bullish
Institutional launches of tokenized stocks, money market funds, stablecoins and deposit tokens on Ethereum point to growing real-world asset activity and higher on-chain liquidity. Key facts supporting a bullish classification: participation from major asset managers and banks (BlackRock, JPMorgan, Fidelity), concrete product launches (Kraken xStocks, Fidelity FDIT, SoFiUSD), JPMorgan seeding $100M, and network indicators showing increased staking and record wallet creation. These developments typically increase demand for ETH and Layer 2 services (more transaction volume, fees, and utility) and attract capital inflows from traditional finance. Short-term effects: periodic spikes in on-chain volume and fee activity around product launches and integrations; increased volatility as markets price in regulatory news and adoption milestones. Long-term effects: sustained growth in on-chain settlement of RWAs could raise baseline demand for Ethereum infrastructure and ETH-denominated settlement, benefiting ETH and Layer 2 ecosystems. Risks that could temper the bullish outlook include regulatory actions against tokenized securities, operational or custody failures, and Vitalik Buterin’s warning about protocol complexity—which could slow developer activity or prompt design changes. Historical parallels: past institutional endorsements (OTC desks, tokenized BTC products, major custodians) correlated with multi-month positive price pressure and increased network usage. Overall, benefits to liquidity and utility outweigh near-term risks, making the net market impact bullish.