Ethereum is Becoming Part of Traditional Finance (TradFi) — Here's Why | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Ethereum is quietly transforming from a hub of speculative activity to a fundamental settlement layer for traditional finance (TradFi). Thanks to its secure infrastructure, increasing regulatory compliance, and network effects, ETH is proving to be capable of securely and efficiently handling large-scale institutional settlements.

How Ethereum Became the Infrastructure for Tokenized Treasuries

In a post on X, crypto trader MoonKing recently highlighted a significant trend in the world of finance, stating that Ethereum is becoming the settlement layer for traditional finance (TradFi). Since January, real-world assets (RWA) tokenized on Ethereum have increased by 20 times, and the trend shows no signs of slowing down.

The capital flows that were once limited to testnets and pilot projects are now decisively shifting towards production-level implementations on the Ethereum mainnet. This transition is supported by real yield and increasing regulatory attention, factors that together are fueling greater trust from institutions.

The main institutions — such as BlackRock, Plume, Ondo Finance, Superstate, and Franklin Templeton — are building with the clear intention of redefining the financial infrastructure by leveraging blockchain. Their goal is not just speculative trading of cryptocurrencies, but the on-chain integration of U.S. Treasuries, credit products, and other yield-generating assets. This strategic move signals a paradigm shift, where traditional finance integrates with decentralized platforms to enhance efficiency, transparency, and accessibility.

With the growing momentum of ETFs, the adoption of stablecoins on the rise, and now also an acceleration of inflows of real-world assets (RWA), Ethereum is rapidly consolidating its role as a central financial infrastructure, becoming increasingly difficult to ignore. This convergence between on-chain finance and traditional systems represents a critical turning point, where ETH is evolving into a foundational layer for global capital markets.

How Ethereum is consolidating its role as a financial infrastructure

BlackRock's appetite for Ethereum continues to grow. According to what was revealed on X by Ucan_Coin, the asset management giant has continued accumulating through the iShares Ethereum Trust (ETHA). BlackRock now holds 2.8 million ETH, worth approximately $10.5 billion. Just in the last week, it added another $440 million in ETH to its portfolio — one of the largest weekly institutional inflows recorded so far.

Related reading: Ethereum is becoming the store of value of the crypto world

ETH underwent a brief correction at the beginning of the week, but it managed to impressively recover the range between $3,700 and $3,800, which has proven to be a key area for the momentum battle in recent weeks.

The market capitalization of altcoins continues to firmly hold above the threshold of $1.25 trillion, a fundamental technical and psychological level that is reinforcing the bullish sentiment across the crypto sector. Institutional inflows driven by giants like BlackRock continue to bolster confidence, further rooting the crypto market in traditional finance.

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