In yesterday’s article, we discussed how traditional capital on Wall Street will eventually cover the entire entry and exit of fiat currencies (USD) in the crypto asset market and attempt to control the pricing power of all mainstream crypto assets through financial instruments such as spot ETFs.
But are these giants only satisfied with positioning themselves in existing crypto assets?
I believe their appetite is much bigger than that. They will eventually come down themselves and issue their own assets – do you novices really think you can beat us old players at this game?
How exactly will they do it?
I believe they will issue their own assets by comprehensively laying out infrastructure and application areas.
If you closely observe the process of institutions submitting Bitcoin and Ethereum spot ETF applications to the SEC, you will notice that although many institutions have submitted their own applications, their attitudes towards Bitcoin and Ethereum are clearly different.
Two institutions stand out in this regard: Grayscale and BlackRock.
In a previous article, I shared with you a piece written by Grayscale. In the article, Grayscale mainly focused on Bitcoin, even describing the Ethereum ecosystem in detail. It’s worth noting that at that time, the popularity of Ethereum was limited, not just among institutional investors, but even among retail investors.
And what about BlackRock?
It is more focused on Ethereum.
The President of BlackRock recently made a statement, indicating that even if the Ethereum spot ETF is not approved, it will not affect their focus on the Ethereum ecosystem. He has also repeatedly stated in public that they will explore some application scenarios on Ethereum, such as RWA.
Compared to these two, Grayscale’s style is closer to the crypto ecosystem, while BlackRock’s style carries a clear traditional business atmosphere. However, the volume of Grayscale is clearly incomparable to that of BlackRock. Once BlackRock really starts to exert its influence, it will quickly surpass Grayscale in terms of impact.
So, I estimate that the influence of traditional institutions on the crypto ecosystem will increasingly lean towards BlackRock’s style in the future.
Looking at BlackRock’s background, it is clearly more concerned about the business benefits and practical uses that blockchain technology can bring. And currently, the Ethereum platform is the most secure, reliable, and feature-rich blockchain platform. Moreover, the existing performance of the Ethereum ecosystem can fully support BlackRock’s focus on the RWA market.
Therefore, I believe that traditional Wall Street institutions like BlackRock will soon come down themselves and simultaneously lay out two areas: infrastructure in the blockchain field and projects on blockchain platforms.
I believe the highly probable blockchain infrastructure here is the second-layer extension of Ethereum.
These institutions will either cooperate with existing second-layer extension projects, directly hold their tokens, and exert their influence on these projects to turn them into their “territory”; or they will personally form a team to develop a second-layer extension that serves their own application scenarios.
Once they have their own infrastructure, the next step is to deploy their easiest and most familiar business on it: RWA.
This way, they can bridge the gap between off-chain finance and on-chain finance, opening up new business areas and profit models.
In this process, they will also issue various tokens based on their needs: some may be designed as “commodity” tokens to serve the public and lower barriers, while others may be designed as “security” tokens exclusively for their users.
With these tokens, they will gradually submit ETF issuance applications to regulatory agencies (either as “commodity” or “security”), legally and compliantly monetizing the financial assets they have created.
In summary, the giants have already opened the door to the legal and compliant world of on-chain assets. Next, they will rush into this new territory, greedily seizing new fruits.