In yesterday’s article, we discussed how traditional Wall Street capital will eventually dominate the exchange between fiat currency (USD) and the entire spectrum of cryptocurrency assets, attempting to control the pricing of all mainstream cryptocurrencies through financial instruments such as spot ETFs.
But are these giants only satisfied with positioning themselves in existing cryptocurrency assets?
I believe their appetite is much larger than that. They will eventually enter the scene themselves and independently issue their own assets—do you think you newcomers can beat us old players at this game?
How exactly will they do this?
I believe they will do so by comprehensively establishing infrastructure and applications in the field.
If you carefully observe the process of institutions submitting Bitcoin and Ethereum spot ETF applications to the SEC, you will find that although many institutions have submitted their own applications, it is evident that their attitudes towards Bitcoin and Ethereum are significantly different.
Two institutions stand out in this regard: Grayscale and BlackRock.
In a previous article, I shared an article written by Grayscale. In the article, Grayscale primarily focused on Bitcoin, even describing the Ethereum ecosystem in detail. It is worth noting that at that time, the popularity of Ethereum was limited, even among retail investors, let alone institutional investors.
And what about BlackRock?
Its focus is more inclined towards Ethereum.
The President of BlackRock even made statements recently, indicating that even if the Ethereum spot ETF is not approved, it will not affect their interest in the Ethereum ecosystem. He has also repeatedly expressed their intention to explore various application scenarios on the Ethereum platform, such as RWA.
Compared to Grayscale, BlackRock’s style clearly carries a more traditional business atmosphere. However, Grayscale’s influence is clearly incomparable to that of BlackRock. Once BlackRock truly starts to make moves, its impact will quickly surpass that of Grayscale.
Therefore, I estimate that the influence of traditional institutions on the cryptocurrency ecosystem in the future will lean more towards BlackRock’s style.
From BlackRock’s background, it is evident that they are more interested in the business benefits and practical applications that blockchain technology can bring. Currently, the most secure and reliable blockchain platform with comprehensive technical capabilities is Ethereum. Furthermore, the existing performance of the Ethereum ecosystem is more than capable of supporting BlackRock’s focus on the RWA market.
Therefore, I believe that traditional Wall Street institutions like BlackRock will soon enter the scene themselves and establish a presence in both areas simultaneously: one being the infrastructure in the blockchain field, and the other being projects on blockchain platforms.
In terms of blockchain infrastructure, I believe the most likely possibility is Ethereum’s layer two scaling solutions.
These institutions will either collaborate with existing layer two scaling projects, directly hold their tokens, and exert their influence on these projects to turn them into their “reservations,” or they will personally form a team to create a layer two scaling solution tailored for their own application scenarios.
Once they have their own infrastructure in place, the next step is to deploy their most easily accessible and familiar business: RWA.
This way, they can bridge the gap between off-chain finance and on-chain finance, opening up new business areas and profit models.
During this process, they will definitely issue various tokens based on their needs. Some may be designed as “commodity” tokens in order to serve the public and reduce barriers to entry, while others may be designed as “securities” tokens exclusively for private users.
With these tokens, they will gradually submit applications to regulatory agencies to issue ETFs (either “commodity” or “securities”), legally and compliantly monetizing the financial assets they have created.
In conclusion, the giants have already opened the door to the legal and compliant world of on-chain assets. Next, they will rush into this new field, greedily seizing new fruits.
