Bitwise Chief: TradFi Advisors Prioritize Stablecoins and Tokenization Over Bitcoin
In brief
- Bitwise's Matt Hougan: 40+ TradFi advisors prioritize stablecoins and tokenization over Bitcoin
- Traditional finance advisors express interest in crypto's real-world capital markets and payments applications
- Bitcoin down 27% YTD while Circle IPO stock fell from $240 to under $79
- SEC planning tokenized stock trading; exchanges already offering it outside US
Advisors Shift Focus to Real-World Applications
Hougan said advisors remained interested in crypto overall but showed much more curiosity about real-world applications reshaping capital markets and global payments. The sentiment reflects a broader institutional shift toward practical blockchain use cases rather than speculative asset plays.
Bitcoin's recent performance may have influenced the conversation. Bitcoin traded down almost 30% year-to-date to $62,500, putting pressure on broader crypto sentiment.
Stablecoins and Tokenization Gain Momentum
Hougan noted that stablecoins and tokenization are now regular topics among major decision-makers. SEC Chair Paul Atkins, Goldman Sachs CEO David Solomon, and BlackRock CEO Larry Fink have all discussed these technologies publicly, signaling institutional-level interest.
The SEC is reportedly planning to allow tokenized stock trading domestically. Many exchanges have already begun offering tokenized stocks outside the US, and companies like Coinbase have been expanding into blockchain-linked services to capture this demand.
Circle, the stablecoin issuer, went public in June 2025 with its stock rallying from a debut price of $31 to a peak of $240. The stock has since cooled, closing at just under $79 on Wednesday — a sign that tokenization enthusiasm hasn't translated into sustained valuations yet.
Which Projects Are on Advisors' Radar
During his conversations, Hougan mentioned Ethereum, Solana, Canton, Chainlink and Avalanche as projects drawing attention. Trading platform Hyperliquid and crypto companies Figure, Circle and Coinbase also came up in discussions.
Hougan said interest in stablecoins and tokenization could be what pulls crypto into a bull market. That thesis hinges on whether real-world adoption accelerates faster than current regulatory timelines allow.
