Financial advisors are shifting their focus away from bitcoin and toward stablecoins and tokenization, signaling a broader change in how digital assets are being evaluated across the financial industry, according to Bitwise chief investment officer Matt Hougan.
Shift toward practical crypto use
After meeting with more than 40 advisory teams, Hougan said discussions are increasingly centered on real-world applications of blockchain, particularly in payments and capital markets. Despite the ongoing market downturn, traders remain engaged with crypto, but their attention is moving toward assets with clear utility.
Hougan described holding multiple calls in a single day where conversations consistently revolved around stablecoins and tokenized assets rather than bitcoin’s price movements. While bitcoin continues to trade above $60,000, it is no longer the dominant topic among advisory firms.
Broader understanding of digital assets
According to Hougan, financial professionals overseeing an estimated $175 trillion in assets are developing a more detailed understanding of blockchain technology. Conversations now frequently explore how digital assets can streamline financial processes and offer exposure to underlying infrastructure rather than serving purely as speculative instruments.
He also pointed to the gold market, currently trading about 20% below its all-time high, as a sign that concerns around currency debasement are less central than before. In contrast, stablecoins and tokenization are gaining traction among regulators and major financial institutions, including central bank and global banking leaders.
Tokenization market expands rapidly
The pivot comes as tokenized real-world assets see rapid growth. The market is projected to rise from $255.84 billion in 2025 to $418.57 billion in 2026, reflecting a compound annual growth rate of more than 60%.
Longer-term projections vary, but estimates suggest the market could reach anywhere between $2 trillion and $16 trillion by 2030. Even the lower end of forecasts points to significant expansion, reinforcing expectations that tokenization will play a major role in future financial systems.
Stablecoins and liquidity trends
Stablecoins are also gaining momentum, with total market capitalization surpassing $200 billion. Their growth has historically correlated with expansion across digital asset markets, as they provide liquidity and a stable medium of exchange for trading activity.
Hougan noted that if advisory firms become a major source of new capital inflows, liquidity is likely to flow first into assets tied to stablecoin and tokenization infrastructure.
Infrastructure players gain traction
Several blockchain networks and companies are emerging as key beneficiaries of this shift. Projects frequently cited in discussions include Ethereum, Solana, Avalanche, Chainlink, and Canton, along with firms such as Circle and Figure that focus on blockchain-based financial services.
The Canton Network, designed for institutional finance, has completed pilot programs involving major firms including Goldman Sachs, BNY Mellon, and CBOE. Meanwhile, Chainlink’s cross-chain protocol is being adopted for secure data and value transfers, including integrations with Swift and institutional settlement systems.
Ethereum and Solana continue to serve as foundational layers. Ethereum’s recent Dencun upgrade has significantly reduced transaction costs on scaling solutions, improving efficiency for tokenized applications. Solana, on the other hand, remains notable for its high transaction throughput, supporting large-scale use cases.
Regulatory developments in focus
This evolving landscape is unfolding alongside legislative efforts in the United States to clarify digital asset regulation. The proposed CLARITY Act aims to define the roles of federal regulators, with ongoing discussions addressing decentralized finance oversight and whether stablecoin issuers can offer rewards.
Mixed signals from fund flows
Despite growing interest in infrastructure and utility-driven assets, capital flows into publicly traded digital asset funds remain uneven. These funds have recorded outflows for three consecutive weeks, totaling $4.21 billion, highlighting a disconnect between institutional curiosity and current market allocations.
Hougan suggested that the renewed engagement among financial professionals could serve as an early signal of the next phase of digital asset adoption, with stablecoins and tokenization at its core.
Explore how real-world assets move on-chain in our guide to tokenized equities and their role in modern finance.
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