How Wall Street is using Ethereum without talking about Ethereum
Wall Street is quietly adopting Ethereum as foundational financial plumbing for automated settlement and tokenized assets, often avoiding direct mention of the network.Summary
Wall Street institutions are increasingly utilizing Ethereum's infrastructure, viewing it as high-tech financial plumbing rather than a speculative crypto asset. This adoption is driven by Ethereum's ability to automate settlement via smart contracts, enabling T+0 clearing and reducing reliance on slow, manual reconciliation processes.
The primary entry point for this adoption involves stablecoins and tokenized dollars, which allow regulated US dollar transfers to move continuously on Ethereum rails, especially after the 2025 GENIUS Act provided a clear regulatory framework. Furthermore, complex investment vehicles, like JPMorgan's tokenized money market fund (MONY) and BlackRock's BUIDL fund, use Ethereum as a distribution and administration layer to enhance liquidity and automate operations like dividend reinvestment.
Financial institutions often maintain a strategic silence about using Ethereum directly, instead marketing the technology using terms like "onchain liquidity" or "programmable payments." They leverage Ethereum's "credible neutrality" and standardized protocols, treating it as a neutral, global settlement layer for tokenized real-world assets, thereby avoiding the limitations of proprietary blockchains.
(Source：Cointelegraph)