Fundstrat
Fundstrat: Why Tokenization Could Reshape the Future of Crypto
9/30/2025, 10:28:09 PM
Economic Summary
- Institutional demand for yield-bearing assets is substantial and will push active managers and passive allocations to seek blockchain-based solutions, increasing on-chain capital flows and infrastructure needs.
- Lending, borrowing, and collateralization markets are expected to migrate to blockchains, enabling more efficient tracking and management of yielding assets for both institutional and retail investors.
- Regulatory developments (e.g., the referenced 'Genius Act' passage and CFTC involvement) are opening avenues for CFTC-backed derivative collateral, a market the speaker estimates in the trillions, which could amplify demand for stablecoins and on-chain collateral by multiples of the current ~$300B stablecoin market cap.
Bullish
- Large institutional demand for yield will drive adoption of yielding assets.
- Lending and borrowing markets will migrate onto blockchains to support active and passive allocations.
- CFTC-backed derivative collateral represents trillions in potential demand, implying large upside for crypto infrastructure.
- The $300B stablecoin market is only a starting point and could expand markedly from derivatives demand.
Bearish
No bearish cases captured.