Key Takeaways:
- Tokenization demand is now independent of Bitcoin’s price.
- Institutions are embracing blockchain for efficiency and long-term value.
- Stablecoins and tokenized funds represent the next frontier for onchain finance.
Tokenization Gains Independence from Bitcoin Price
Institutional interest in blockchain technology has entered a new phase. According to Thomas Cowan, head of tokenization at Galaxy Digital, demand for tokenization is no longer tied to Bitcoin’s volatile price cycles. Speaking at The Bridge conference in New York, Cowan noted that institutions now see blockchain as a durable financial infrastructure, not a speculative play.
“In previous cycles, tokenization interest rose and fell with Bitcoin,” Cowan said. “Now, we’re seeing consistent institutional engagement—independent of price swings.”
This marks a pivotal moment for blockchain adoption, signaling that tokenization is standing on its own merits as a tool for transforming financial markets.
From Crypto Hype to Institutional Utility
Tokenization, which involves converting real-world assets like bonds or oil into digital tokens on a blockchain, has grown rapidly in 2024. The shift has been driven partly by regulatory easing under the Trump administration and broader institutional recognition of blockchain’s cost and efficiency benefits.
Cowan emphasized that the industry must now “demonstrate clear, practical benefits” to maintain momentum. “Institutions think in decades,” he said. “They need to see that this technology offers a better, faster, cheaper way to move and store assets.”
Also Read: XRP Price Drops After $30B Surge — Is the Crypto Hype Fading in April 2025?
This pragmatic narrative—less about crypto speculation, more about financial modernization—is what’s finally convincing Wall Street that blockchain is here to stay.
Stablecoins and Tokenized Funds Lead the Next Wave
Cowan highlighted stablecoins and tokenized money market funds as key growth areas. Following new U.S. laws regulating stablecoins, their adoption has surged. He called tokenized funds the “logical next step,” offering investors safe, yield-bearing alternatives to stablecoins.
Also Read: Top 10 Crypto Trends for the Next Bull Run
“As capital moves onchain, investors want to earn risk-free returns,” Cowan explained. “That’s why tokenized money market funds are becoming so attractive.”
The Bottom Line
With institutions now decoupling blockchain innovation from crypto’s price volatility, tokenization is entering its utility era. As Cowan put it, “This is the time to invest—because the transformation is finally real.”
