Wall Street Firms Shift to Blockchain; Tokenization Seen as Major Growth Opportunity

Major Wall Street firms are rapidly integrating blockchain into core financial infrastructure, challenging the enduring perception of crypto as merely a risky or marginal asset. Bitwise chief analyst Matt Hougan warns in a client note that investor views remain anchored to past scandals (Mt. Gox, Silk Road), creating an “anchoring bias” that obscures current developments. He highlights moves by BlackRock, Apollo and JPMorgan — including BlackRock’s tokenized treasury funds and investment activity — as evidence of a structural shift. Global traditional markets (ETFs ~$30T, stocks ~$110T, bonds ~$145T) dwarf the tokenized asset market (~$20B), implying vast upside if capital migrates to blockchain-based tokenization. Key open questions include whether value will accrue on public chains (Ethereum, Solana) or private networks (e.g., Canton Network). Hougan recommends broad-based positioning to capture “alpha” as institutional adoption deepens. The article frames institutional tokenization as transitioning blockchain from speculative experiment to core financial plumbing, urging traders to reassess risk and opportunity amid changing capital flows. (Primary keywords: blockchain adoption, tokenization, institutional crypto; secondary: BlackRock, tokenized assets, anchoring bias.)