Key takeaways:
The stablecoin market capitalization has increased to $280 billion since 2023, with projections suggesting it may reach $2 trillion by 2028; more than half of it currently operates on Ethereum.
On-chain real-world assets have surged 413% since early 2023 to $26.7 billion, with leading contributions from BlackRock, Franklin Templeton, and others on Ethereum.
Legislation like the GENIUS Act and CLARITY Act could facilitate large-scale institutional adoption and bolster Ethereum’s significance.
The price of Ether (ETH) has soared by 88% in just two months, surpassing most large-cap cryptocurrencies. While some attribute this to the anticipated altcoin season or the newfound interest from ETH ETFs and corporate treasuries, the real driving force seems to be the steady rise in institutional adoption of crypto.
By establishing a stronghold in two sectors highly sought after by traditional finance—stablecoins and tokenized real-world assets (RWAs)—Ethereum is positioning itself as the leading smart contract platform. New US regulations, particularly the GENIUS Act and CLARITY Act, have the potential to enhance this trend and expedite Ethereum’s integration into institutional finance.
Stablecoins are the lifeblood of finance
Since the beginning of the 2023-2026 cycle, the stablecoin market cap has doubled to $280 billion, as reported by DefiLlama. Analysts at McKinsey project that this figure could exceed $400 billion by year-end and reach $2 trillion by 2028. What initially served as trade pairs for other cryptocurrencies has evolved into a direct competitor to traditional money transfer systems—faster, more cost-effective, and increasingly global.
Ethereum leads the charge in this domain. Dune Analytics indicates that 56.1% of all stablecoins are built on Ethereum. The logic is straightforward: as stablecoins dominate cross-border payments, Ethereum benefits from increased transaction fees.
Regulation now solidifies this growth. The GENIUS Act, enacted in July 2025, establishes the first federal framework for stablecoins. It requires one-to-one backing with dollars or short-term Treasuries, mandates public reserve disclosures, and exempts stablecoins from securities regulation. This makes their issuance and use safer and more predictable, linking their growth to US Treasuries and the dollar.
RWAs represent the next frontier for financial assets onchain
Tokenized real-world assets have become emblematic of this cycle. The sector is rapidly expanding as banks and asset managers recognize the efficiency of moving tokenized assets compared to traditional finance processes. According to analytics website RWA.xyz, its growth has soared 413% since early 2023—from $5.2 billion to $26.7 billion today.
Key players are facilitating this transition. BlackRock’s BUIDL, WisdomTree’s WTGXX, and Franklin Templeton’s BENJI now operate alongside crypto-native issuers such as Tether’s XAUT, Paxos’ PAXG, and Ondo’s OUSG and USDY. This convergence illustrates how swiftly the distinction between crypto and traditional finance is vanishing.
Once more, Ethereum takes the lead, hosting over $7.6 billion in tokenized real-world assets and capturing 52% of the overall RWA market.
Related: Ether ETFs attract 10x more inflows than Bitcoin within 5 days
Ethereum stands as the most “mature blockchain”
Ethereum’s edge lies not only in market dominance but also in its established reputation. It has earned institutional credibility as the oldest smart contract platform with 100% uptime and considerable decentralization. Cointelegraph has previously noted that traditional finance increasingly regards Ethereum as the most proven and neutrally credible network. Paradoxically, these traits now render Ethereum far more appealing to traditional finance than the “private” blockchains once celebrated as the future of financial readiness.
In a significant policy shift, the US regulatory landscape now formalizes that contrast. The CLARITY Act, passed by the House on July 17 and currently awaiting Senate consideration, introduces the term “mature blockchain” and differentiates between assets regulated as commodities by the CFTC and those under SEC’s jurisdiction. This has substantial implications for crypto finance and specifically RWAs: any blockchain meeting the maturity criteria could host tokenized representations of virtually any asset.
To pass this test, no single entity can control the network or hold more than 20% of its tokens; the code must be open-source, governance transparent, and participation diverse. Ethereum easily meets these requirements, positioning it as the logical choice for institutions aiming to bring vast quantities of real-world assets on-chain.
As regulation strengthens the link between DeFi and TradFi, Ethereum is not just well-positioned; it is becoming the preferred infrastructure. Consider ETH not merely as a speculative asset but as a vital component of financial infrastructure. This kind of transformative reality can significantly alter ecosystems and price trends.
This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should perform their own research prior to making any decisions.
