In yesterday’s article, we talked about how traditional Wall Street capital will eventually cover the entire entry and exit of crypto assets to fiat currency (US dollars) and try to control the pricing power of all mainstream crypto assets (through financial instruments such as spot ETFs).
But are the giants merely satisfied with making arrangements for existing crypto assets?
I think their appetite is much bigger than this. They will eventually personally launch their own assets. If you new players can play this game, how can we old players lose to you?
What exactly will they do?
I think we will issue our own assets through a comprehensive layout of infrastructure and application areas.
If you carefully observe the process of institutions submitting Bitcoin and Ethereum spot ETF applications to the SEC, you will find that although many institutions have submitted their respective applications, it is obvious that there are obvious differences in their attitudes towards Bitcoin and Ethereum.
Two companies stand out in this regard: Grayscale and BlackRock.
In a previous article, I shared with you an article written by Grayscale recently. In the article, Grayscale mainly focused on Bitcoin, and even had a special description of the inscription ecosystem. You have to know that at that time, not to mention institutional investors, even among retail investors, the popularity of inscriptions was still limited.
And what about BlackRock?
Its focus is more on Ethereum.
The president of BlackRock made a statement a while ago, saying that even if the Ethereum spot ETF is not approved, it will not affect their attention to the Ethereum ecosystem. He also publicly stated many times that he will explore some application scenarios on Ethereum: such as RWA.
Compared with the two companies, Grayscale's style is closer to the crypto ecosystem, while BlackRock's style has a distinct traditional business flavor. But Grayscale's size is obviously not comparable to BlackRock's. Once BlackRock really starts to exert its strength, its influence will quickly surpass Grayscale.
So I estimate that the influence of traditional institutions on the crypto ecosystem will increasingly tend towards BlackRock's style in the future.
Judging from BlackRock’s background, it is clear that it cares more about the commercial benefits and practical uses that blockchain technology can bring. At present, Ethereum is the first blockchain platform that is both secure and reliable and has complete technical functions. Moreover, the existing performance of the Ethereum ecosystem can fully support the RWA market that BlackRock is concerned about.
So I think traditional Wall Street institutions like BlackRock will soon be involved in both areas:
One is the infrastructure in the blockchain field; the other is the application projects on the blockchain platform.
I think the most likely blockchain infrastructure here is Ethereum's second-layer expansion.
These institutions either cooperate with some existing second-layer expansion projects, directly hold their tokens, and exert their influence on these projects to turn these second-layer expansions into their own "reserves", or they personally find a team to build a second-layer expansion specifically for their own application scenarios.
Once they have the infrastructure to serve themselves, the next step is to deploy the business that is easiest to carry out and most familiar to them: RWA.
In this way, they can break down the barriers between off-chain finance and on-chain finance and open up new business areas and profit models.
In this process, they will certainly issue various tokens based on their own needs: some may be designed as "commodity" tokens in order to serve the general public and lower the threshold as much as possible; some may be designed as "securities" tokens just to serve exclusive users.
With these tokens, they can then submit ETF issuance applications (or "commodities" or "securities") to regulatory authorities in a step-by-step manner, and smoothly, legally and compliantly liquidate the financial assets they have created.
In short, the giants have already opened the door to the legality and compliance of on-chain assets. Next, they will rush into this new field and greedily grab new fruits.
