At a Glance
- 35 leading financial and tech firms have launched new products on Ethereum.
- Tokenized stocks, money-market funds, stablecoins, and bank deposits are now on a public blockchain.
- Staking surpassed 30% of the supply, locking 36.2 million ETH, while wallet creation hit a record of 394 000 new addresses in a single day.
- Why it matters: Mainstream institutions are moving real-world assets onto a public chain, expanding Ethereum‘s role beyond speculative trading.
The last few weeks have seen an unprecedented wave of institutional activity on Ethereum. From tokenized equities to stablecoin-backed deposits, major firms are using the network as a settlement layer for real-world assets. This shift signals a broader acceptance of blockchain technology in traditional finance and highlights the growing complexity of the protocol.
Institutional Adoption on Ethereum
The Ethereum X account posted on Jan 19 that adoption had accelerated, citing launches across tokenized stocks, money-market funds, stablecoins, and deposits. The post drew attention to the breadth of products now available on the mainnet and its Layer 2s.
- Kraken rolled out xStocks, allowing clients to move fully collateralized U.S. equities on-chain.
- Ondo Finance launched a platform featuring more than 100 tokenized U.S. stocks and ETFs backed by real securities.
- Fidelity introduced its tokenized money-market fund, FDIT, on the network.
- China Asset Management‘s Hong Kong arm launched a tokenized USD money-market fund, one of the first from a major Chinese asset manager.
- Amundi added a tokenized share class of its euro money-market fund on the mainnet.
- JPMorgan moved its JPM Coin deposit token from an internal blockchain to Base, an Ethereum Layer 2, and later launched a tokenized money-market fund seeded with $100 million of its own capital.
- Societe Generale‘s FORGE deployed euro- and dollar-denominated lending and trading products on Ethereum-based DeFi protocols.
Payments and fintech firms also joined the wave. Stripe expanded stablecoin subscriptions using USDC on Ethereum, while SoFi issued SoFiUSD, becoming the first U.S. national retail bank to launch a stablecoin on a public blockchain. Google announced an agent-payments protocol using stablecoins on Ethereum, built with partners including the Ethereum Foundation and Coinbase.
The announcement on Jan 19 captured the momentum of this wave, noting that the range of products now spans equities, money markets, stablecoins, and deposits. This breadth showcases Ethereum’s versatility as a settlement layer for diverse asset classes.
Kraken’s xStocks, for instance, lets clients move fully collateralized U.S. equities on-chain, offering instant settlement and reduced counterparty risk. Ondo Finance’s platform features more than 100 tokenized U.S. stocks and ETFs, all backed by real securities. These offerings demonstrate how traditional financial instruments can be represented as digital tokens on Ethereum.
Large asset managers have followed suit. Fidelity’s tokenized money-market fund, FDIT, and China Asset Management’s Hong Kong arm’s tokenized USD money-market fund are among the first from major managers to use Ethereum. Amundi’s tokenized share class of its euro money-market fund further expands the range of tokenized products available to investors.
Banks have also expanded. JPMorgan moved its JPM Coin deposit token from an internal blockchain to Base, an Ethereum Layer 2, and launched a tokenized money-market fund seeded with $100 million. Societe Generale’s FORGE deployed euro- and dollar-denominated lending and trading products on Ethereum-based DeFi protocols.
Payments and fintech firms joined the wave. Stripe’s expansion of stablecoin subscriptions using USDC on Ethereum and SoFi’s issuance of SoFiUSD, the first U.S. retail bank to launch a stablecoin on a public blockchain, illustrate the growing interest in stablecoins. Google’s agent-payments protocol using stablecoins on Ethereum, built with partners including the Ethereum Foundation and Coinbase, further underscores the network’s versatility.
Tokenized Products Landscape
| Institution | Product | Asset Type | Notes |
|---|---|---|---|
| Kraken | xStocks | U.S. equities | Fully collateralized on-chain |
| Ondo Finance | Tokenized stocks & ETFs | U.S. equities & ETFs | 100+ securities |
| Fidelity | FDIT | Money-market fund | Tokenized on Ethereum |
| China Asset Management (HK) | Tokenized USD MMF | Money-market fund | First from major Chinese manager |
| Amundi | Tokenized euro MMF | Money-market fund | Share class on mainnet |
| JPMorgan | Tokenized MMF | Money-market fund | Seeded with $100 million |
| Societe Generale | FORGE | Lending & trading | Euro & dollar products |
| Stripe | Stablecoin subscriptions | USDC | On Ethereum |
| SoFi | SoFiUSD | Stablecoin | First U.S. retail bank token |
| Agent-payments protocol | Stablecoins | Built with Ethereum Foundation & Coinbase |
The table below summarizes the key institutions, the products they have launched, the asset types involved, and notable details.
Staking and On-Chain Activity
Ethereum staking has surged, surpassing 30% of the total supply. According to Ultrasound Money, about 36.2 million ETH are locked this month. Staking activity and wallet creation are at record highs, indicating robust network usage.
The record wallet creation on Jan 11 indicates a surge in new users and increased engagement with the network. Nearly 394 000 new addresses were created in a single day, highlighting the rapid adoption of Ethereum by individuals and institutions.
| Date | Milestone |
|---|---|
| Jan 11 | Record wallet creation: 394 000 new addresses |
| Jan 18 | Vitalik Buterin warns about protocol complexity |
| Jan 19 | Ethereum X post on institutional acceleration |
Governance and Design Concerns
On Jan 18, Vitalik Buterin warned that growing protocol complexity could weaken security and self-sovereignty over the long term. He urged developers to prioritize simplicity, highlighting a tension between expanding institutional use cases and maintaining a resilient base protocol.
“Growing protocol complexity could weaken security and self-sovereignty over the long term,” said Vitalik Buterin.
The tension between expanding institutional use cases and maintaining a resilient base protocol is evident. While layer-2 solutions like Base offer performance gains, they also introduce additional layers that must be managed.
Key Takeaways
- 35 major firms are now offering tokenized assets on Ethereum, moving real-world finance onto a public blockchain.
- The ecosystem now includes tokenized stocks, money-market funds, stablecoins, and deposit tokens.
- Staking activity and wallet creation are at record highs, indicating robust network usage.
- The rapid expansion raises governance and simplicity concerns, as voiced by Vitalik Buterin.
- The shift signals a broader acceptance of blockchain technology in mainstream finance, but also highlights the challenges of scaling a complex protocol.
