Tokenization Accelerates: A Structural Shift in Traditional Finance

Bitwise CIO: Crypto's Structural Shift Is Being Mispriced

A recent memo from Bitwise Chief Investment Officer Matt Hougan has shed light on the significant changes taking place in traditional finance's engagement with blockchain technology. According to Hougan, the industry is witnessing a fundamental shift as tokenization accelerates and major financial institutions begin to adopt blockchain-based infrastructure.

Hougan notes that despite the rapid growth of tokenized real-world assets from 2020 to 2025, investors are failing to register these changes due to anchoring bias. This phenomenon occurs when individuals fixate on initial information encountered, preventing them from adjusting their views in response to new developments.

The report highlights several key developments that demonstrate the industry's move towards blockchain technology, including SEC Chairman Paul Atkins' 'Project Crypto' initiative and BlackRock's launch of its $2 billion BUIDL tokenized Treasury fund. Additionally, major banks such as JPMorgan and Bank of America are discussing a joint stablecoin.