Emre Yumlu 
As the transformation of institutions like Wall Street accelerates in the crypto asset sector, there are notable assessments suggesting that traditional investors have not adequately priced in this change. According to Bitwise CIO Matt Hougan, the financial industry is increasingly preparing to move core market infrastructure on-chain, even as broad investor perception lags behind.
Hougan argues that the transition underway is not incremental. In his view, major financial institutions are not merely experimenting with blockchain technology at the margins; they are laying the groundwork for capital markets that could eventually operate natively on-chain. The question, he suggests, is not whether Wall Street is engaging with crypto — but when that engagement will be fully reflected in asset prices.
Wall Street is Working on Crypto!
One of the central issues, Hougan contends, is anchoring bias. Many investors still associate crypto with its early identity: a niche technology embraced by technologists and fringe communities. That outdated mental model may be obscuring the structural evolution currently taking place.
Today’s landscape looks markedly different. Regulated financial entities are building compliant infrastructure, integrating blockchain-based settlement systems, and developing tokenized financial products. The transformation is not just conceptual — it is measurable.
The total value of tokenized assets on public blockchains, including U.S. Treasurys and commodities, has surged more than fourfold over 2025, approaching $20 billion. When compared to the hundreds of trillions of dollars in global ETFs, equities, and bond markets, the potential addressable market for tokenization remains vast.
Regulatory Momentum and Institutional Participation
Regulatory posture in the United States has also become more constructive. The Securities and Exchange Commission’s “Project Crypto,” launched in July to facilitate the migration of financial markets on-chain, signals formal institutional support for this direction.
Meanwhile, major asset managers such as BlackRock and Apollo have introduced tokenized funds valued in the billions. Large banking institutions — including JPMorgan, Bank of America, Citigroup, and Wells Fargo — are reportedly engaged in discussions around stablecoin initiatives.
A Mispriced Structural Shift?
Hougan suggests that both traditional and crypto-native investors may be underappreciating the magnitude of the change. After years of hearing about institutional adoption, markets may have grown desensitized to the narrative.
However, accelerating tokenization volumes, regulatory alignment, and concrete participation from major financial players indicate that on-chain finance is evolving into a structural development rather than a speculative theme. If that assessment proves accurate, the repricing of this transformation may still be ahead.
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