The Ethereum party won't stop! RWA and TradFi are solidifying its position as the preferred choice for institutional investors.

Ethereum has not only seen a surge in price recently, but it has also secured a core position in the realm of institutional investors. From the market capitalization of stablecoins doubling, to the on-chain explosion of RWA (real-world assets) by 413%, and the regulatory benefits of the U.S. “GENIUS Act” and “CLARITY Act”, ETH is transitioning from a “crypto asset” to a global financial infrastructure.

This party has just begun.

stablecoin: Financial blood flows comprehensively towards Ethereum

(Source: Dune)

Market Capitalization Explosion: Since 2023, the market capitalization of stablecoins has doubled to $280 billion, and McKinsey estimates it will reach $2 trillion by 2028.

Ethereum advantages: 56.1% of stablecoins operate on Ethereum (Dune Analytics data)

Regulatory Support: The “GENIUS Act” requires stablecoins to be 1:1 backed by US dollars or short-term US Treasury securities, with reserves made public, exempt from securities regulation.

Meaning: The more stablecoins take over cross-border payments and settlements, the higher the transaction fee revenue and network value of Ethereum will be.

RWA: The Golden Era of On-Chain Real World Assets

(Source: RWA XYZ)

Growth data: Since the beginning of 2023, the on-chain scale of RWA has grown by 413%, reaching 26.7 billion USD (RWA.xyz)

Institutional Entry:

1. BlackRock BUIDL

2. Franklin Templeton BENJI

3、WisdomTree WTGXX

Ethereum leads: holding $7.6 billion RWA, accounting for 52% of the market

Meaning: Banks and asset management companies have found that the transfer efficiency of tokenized assets far exceeds that of traditional financial infrastructure, driving capital to accelerate on-chain.

Regulatory Dividend: US Bill Gives Green Light for Institutional Adoption

GENIUS Act

The federal level has established a complete framework for stablecoins for the first time.

Attract banks and technology companies to issue compliant stablecoins

Link the growth of stablecoins directly to the US dollar and US Treasury bonds.

“CLARITY Act”

Introducing the concept of “mature blockchain”

Distinguish between commodity assets regulated by the CFTC and securities assets regulated by the SEC.

Requirements: decentralized, open source, transparent governance, single entity holding no more than 20% of the tokens.

Ethereum easily meets the standard → Becomes the preferred platform for institutional on-chain RWA.

Why Ethereum? Three Major Reasons from an Institutional Perspective

Market share: stablecoins and RWA both rank at the top.

Credibility: 100% uptime, highly decentralized, open-source governance

Ecological maturity: DeFi, NFTs, Layer 2, cross-chain infrastructure is complete

TradFi Perspective: While private chains were once seen as the future of finance, today, the open and mature Ethereum better meets the needs of global capital.

The Real Shift in Prices and Market Structure

ETH price: 88% increase over the past two months, surpassing most mainstream cryptocurrencies.

Driving Factors:

1. Institutional stablecoin and RWA deployment

2. ETF capital inflow

3. Purchase corporate bonds with ETH

Structural changes: ETH is being viewed as a core financial infrastructure rather than merely a speculative asset.

Conclusion

Stablecoins are the lifeblood of finance, RWA is the future of on-chain assets, and Ethereum holds an overwhelming advantage in both areas. As the boundaries between TradFi and DeFi gradually disappear, U.S. regulations are opening the door for institutional capital, and the Ethereum party is not only not stopping but is just getting started.

For institutional investors, ETH is no longer just a part of the crypto market, but a core node of the global financial network in the 21st century.