Citrini: Tokenization stocks and tokens may outperform bitcoin and ether
Tokenization boom may favor fee earners over bitcoin and ether
Influential research firm Citrini Research says Wall Street's push to put stocks, bonds and other financial assets on blockchains could create a huge new market, but the biggest winners may not be bitcoin or ether.
In a 79-page report titled Breaking the Wall, published Thursday, Citrini argued that tokenization could open new businesses in trading, lending and payments. The firms and protocols that collect fees from that activity are likely to benefit more, the report said.
Tokenization turns traditional financial assets into digital tokens that can move between platforms and potentially trade around the clock. For example, a tokenized stock could be used as collateral for a loan directly from a digital wallet, without going through a traditional brokerage.
Key numbers from the report
- Citrini runs the most-followed crypto Substack newsletter, with more than 263,000 followers.
- The report identified two investment baskets: one focused on publicly traded stocks and another on crypto tokens.
- Citrini warned that growing blockchain activity does not always lead to higher token prices.
What the report highlights in stocks
Citrini pointed to several public companies it believes could benefit from the shift:
- Securitize (SECZ) — maintains the legal link between blockchain tokens and the securities they represent.
- Coinbase (COIN) and Robinhood (HOOD) — offer exposure through their trading platforms and blockchain infrastructure.
- Circle (CRCL) — could benefit from greater demand for its USDC stablecoin (a digital dollar-pegged currency) to settle transactions.
- Figure Technology Solutions (FIGR) — involved in tokenized lending.
- SoFi (SOFI) — highlighted for stablecoin payments.
- Bullish (BLSH) — also mentioned.
Token opportunities identified
Citrini was particularly optimistic about certain crypto tokens, naming Aerodrome, Maple, Ondo, Pendle and Derive among others.
What is still unclear
The report acknowledged uncertainty around whether major coins like bitcoin and ether will reach new all-time highs from tokenization alone. It stated: "We can't assume that majors, primarily BTC and ETH, will make new ATHs on this."
Why this matters
If institutional investors and traditional finance firms continue moving assets onto blockchains, the infrastructure and platforms facilitating that shift could see significant growth. Investors watching the trend should consider which companies and tokens actually earn fees from the activity, rather than assuming broad crypto leaders will automatically benefit the most.
Citrini's earlier research on AI went viral earlier this year and was linked by some to a brief market selloff.
Source
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.