Blockchain Technology Revolutionizes Capital Markets

The financial industry is undergoing a significant transformation as tokenization of securities gains momentum. Major players like BlackRock and Nasdaq are embracing blockchain technology, leading to the emergence of Hybrid Finance.

Hybrid Finance refers to the gradual rewiring of capital markets onto public blockchain rails. This shift is being driven by three structural forces: settlement infrastructure, tokenized real-world assets, and revenue-generating on-chain applications.

Settlement infrastructure is a key component of this new architecture. Stablecoins have become increasingly popular, with a market cap exceeding $300 billion. Ethereum and Solana are the dominant institutional settlement layers, securing billions of dollars in stablecoin supply.

Tokenized real-world assets are also playing a significant role in this shift. Tokenized fund AUM has reached $9 billion, with US Treasuries and private credit leading adoption. Tokenized stocks have seen a substantial increase, reaching $773 million in Q1 2026.

The emergence of revenue-generating on-chain applications is another key aspect of Hybrid Finance. Protocols like Hyperliquid are generating significant revenue, comparable to regulated exchanges. These protocols offer transparent financials and built-in buyback mechanisms, making them analyzable through familiar public markets frameworks.