The Senate’s Republican majority leader, John Thune, took to the chamber floor on Thursday morning to make a case for moving forward with stablecoin legislation — marking his first significant foray into the topic of crypto as Republicans grow frustrated with keeping what was once a bipartisan effort on track.

«Stablecoins should be made in the USA, but we can’t lead in innovation if there’s no clarity for the innovators,» Thune said in his speech on the Senate Floor, delivered in the runup to an afternoon vote meant to advance the debate on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act that would establish a U.S. regime to regulate stablecoin issuers.

«Americans are already using stablecoins and will continue to use them with or without legislation,» Thune argued, saying that the bill will establish safeguards against money laundering and threats to national security, in addition to protecting consumers with reserve requirements.

«The GENIUS Act is by no means the last word on digital assets,» the South Dakota lawmaker said, but he characterized it as a «first step toward bringing digital assets into our financial system.»

Though many Democrats expressed earlier support for the legislation and helped move it out of the Senate Banking Committee with an 18-6 vote, they’ve have thrown up loud objections to moving forward, focusing on President Donald Trump’s personal crypto interests and the potential conflicts posed by those business ties. Senator Ruben Gallego has been in the vanguard of this backlash, despite his close ties to the industry, which supported his 2024 Senate campaign with $10 million in advertising paid for by an affiliate of the crypto-backed Fairshake political action committee.

The Senate is steaming toward a 1:45 p.m. Thursday so-called cloture vote, which would open debate in the legislation — a back-and-forth which itself could occupy days of floor time. But that next step would need several Democrats to pass the 60-vote required margin. Alongside Gallego, several of the Democrats who voted for the bill in committee have said they would oppose the cloture vote.

Thune made the case that Democrats should allow the bill to move to that stage so that the changes they want can be hashed out in the open.

Lawmakers and staffers in the Senate worked overnight into the early hours of Thursday fielding further concerns from Democratic members, leaving some expressing doubt about how successful the vote will be on what’s now the sixth version of this stablecoin bill.

The House of Representatives has been working on a similar bill that would eventually needed to be melded with this one before it can become law, but the Senate has long been the bottleneck for advancing crypto bills, and it promises to be the more difficult venue for clearing the industry’s efforts.

«We have the opportunity to move the ball forward today,» Thune said. «I encourage my colleagues to take it.»

Read More: Dems Stall Stablecoin Bill, Jeopardizing More Important Crypto Regulation Bill

Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors near Chicago, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, May 22. Learn more.

In today’s Crypto for Advisors, Tedd Strazimiri from Evolve ETFs writes about the evolution of tokenization and the value it brings to investors. 

Then, Peter Gaffney from Inveniam answers questions about what tokenization can do for wealth managers and their clients in Ask an Expert.

— Sarah Morton

The Tokenization Boom: Why Ethereum Remains the Rails for Real-World Asset Tokenization

The tokenization of real-world assets (RWAs) has moved beyond buzzword status to become a multi-billion-dollar reality, led by Ethereum. Of the more than $250 billion in tokenized assets, Ethereum commands approximately 55% of the market. From stablecoins and U.S. Treasuries to real estate, private credit, commodities and equities, Ethereum has emerged as the preferred blockchain infrastructure for institutions aiming to bridge traditional finance with the digital asset world.

Why tokenization matters

At its core, tokenization is the process of converting ownership rights in RWAs into digital tokens that live on a blockchain. This transformation introduces unprecedented efficiencies in settlement speed, liquidity and accessibility. Tokenized assets can be traded 24/7, settled instantly and fractionalized to reach a broader range of investors. For institutions, tokenization reduces costs tied to custody, middlemen and manual processes, while offering transparency and programmability.

But while tokenization is a trend that can take root across multiple blockchains, Ethereum’s dominance is no accident. Its established infrastructure, widespread developer ecosystem and proven security have made it the go-to platform for major players entering the space.

Ranked: Blockchain Networks Supporting RWA Tokenization

BlackRock’s BUIDL and the rise of institutional tokenization

One of the best examples of institutional adoption of tokenization is BlackRock’s BUIDL, a tokenized U.S. Treasury fund built on Ethereum. Launched in early 2024, BUIDL allows investors to access U.S. Treasuries via blockchain, offering real-time settlement and transparency into holdings. The fund has rapidly scaled to over $2.5 billion in assets under management, securing a 41% market share in the tokenized U.S. Treasury space. Ethereum remains the dominant chain for tokenized Treasuries, accounting for 74% of the $6.2 billion tokenized US treasuries market. BUIDL isn’t just a product; it’s a signal that TradFi sees Ethereum as the backbone of the next financial era.

Stablecoins: the foundation layer

No discussion of tokenization is complete without stablecoins. U.S. dollar-pegged assets like USDC and USDT represent the vast majority (95%) of all tokenized assets. Stablecoins alone account for more than $128 billion of Ethereum’s tokenized economy1 and serve as the primary medium of exchange across DeFi, cross-border settlements and remittance platforms.

In many developing economies, like Nigeria or Venezuela, stablecoins provide access to the U.S. dollar without needing a bank. Whether shielding savings from inflation or enabling seamless international trade, stablecoins show the real-world value of tokenized dollars, backstopped by the Ethereum network.

Tokenized Stocks and beyond

Tokenized stocks on Ethereum represent a growing but still nascent segment of the tokenized asset space. These digital assets mirror the price of real-world equities and ETFs, offering 24/7 trading, fractional ownership, global accessibility and instant settlement. Key benefits include increased liquidity, lower transaction costs and democratized access to markets traditionally limited by geography or account type. Popular tokenized stocks include Nvidia, Coinbase and MicroStrategy, as well as ETFs like SPY. As regulatory clarity improves, tokenized equities on Ethereum could reshape how investors access and trade stocks, especially in underserved or emerging markets.

Additionally, real estate, private credit, commodities and even art are finding their way onto Ethereum in tokenized formats, proving the chain’s adaptability for diverse asset classes.

Tokenized RWAs (excluding Stablecoins)

Source: RWA.xyz, as of April 22, 2025.

Conclusion

Ethereum’s dominance in tokenized assets isn’t just about being first — it’s about being built for permanence. As the infrastructure underpinning real-world asset tokenization matures, Ethereum’s role as the financial layer of the internet becomes more pronounced. While newer chains like Solana will carve out niches in the space, Ethereum continues to be the platform where regulation meets innovation, and where finance finds its next form.

— Tedd Strazimiri, product research associate, Evolve ETFs

Ask an Expert

Q. What are the value drivers of tokenization for a wealth manager?

A. The tokenization of assets should come with newfound utility. Financial advisors, wealth managers and other fiduciaries already have access to a wide universe of investment products. Where tokenization adds value is through the infrastructure emerging around tokenized real-world assets, particularly applications enabling the collateralization and margining of asset-backed tokens.

Blockchain-based data management systems, like Inveniam, are designed to enable real-time, asset-level reporting to facilitate private asset-backed stablecoin loans, with the same integrity and traceability that exists elsewhere in the crypto space. This allows legacy private asset classes — like real estate and credit — to function similarly to how $30 billion in crypto loans are currently collateralized on platforms like Aave. This new utility is a significant value-add and a differentiating service factor that advisors can offer clients beyond traditional crypto allocations.

Q. How does tokenization help advisors achieve their portfolio management goals?

A. Alongside benefits like collateralization, advisors also gain greater control over client portfolio allocations through second-order tokenization benefits. Many investment funds across private equity, hedge funds, private credit and commercial real estate have high minimum investment requirements and illiquid secondary trading activity. This “set it and forget it” mentality leads to inefficient portfolio management, in which advisors either overallocate or underallocate due to the “lumpiness” of the underlying asset.

By contrast, tokenized funds can be fractionalized far more efficiently than existing offerings, meaning advisors can buy in at much lower minimums, such as $10,000 increments, versus millions of dollars at a time. Then as client preferences, positions and portfolios shift, advisors can reallocate accordingly, making use of secondary liquidity venues and ongoing low-minimum subscriptions. This improves an advisor’s ability to meet client demands and achieve return targets without being inhibited by outdated practices.

— Peter Gaffney, director of DeFi & digital trading, Inveniam

Keep Reading

• SEC Commissioner Hester Peirce stated that “tokenization is a technology that could significantly impact financial markets.
• New Hampshire makes history and becomes the first U.S. state to bring into law state investment in bitcoin and digital assets.
• Morgan Stanley is developing plans to offer direct crypto trading on its E*Trade platform by 2026.

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

Traders looking for tokens that may see accelerated gains as bitcoin (BTC) rallies might want to focus on ether (ETH) and the ratio between bitcoin cash (BCH) and bitcoin.

Both have broken prolonged downtrends alongside bullish bottom formations in leading meme tokens DOGE and SHIB.

Ether breakout

Ether’s price has surged more than 8% today, piercing the trendline (see the left-hand chart) that represents the downtrend from December highs above $4,100. In other words, demand has finally managed to overpower the supply zone defined by the trendline, confirming a bullish shift in the market trend.

The three-line break chart (on the right) shows a similar breakout. The line break chart
focuses on price movements and changes in trend while ignoring time, helping traders filter out erratic price movements and noise. As a result, signals on the line break chart are considered more reliable and durable signals.

The breakout shifts focus to resistance between $2,300 and $2,400, the support zone from October and November.

BCH/BTC

The ratio between U.S. dollar prices for bitcoin cash and bitcoin has risen 11% this week, topping a trendline characterizing the brutal year-long bear market.

The bullish development suggests BCH outperformance relative to bitcoin in the coming days.

DOGE, SHIB bottoms

The market caps for DOGE and SHIB were up 7% and 5% at the time of writing, with their respective daily charts showcasing a «rounding bottom» pattern.

A rounding bottom happens after a significant downtrend, as in DOGE and SHIB’s cases. and signals a shift to a bullish market. It shows a change from lower highs to higher lows, indicating that buying interest is starting to increase.