SKN | Stablecoins and Tokenized ETFs Take Center Stage at BNY Mellon Conference

Key Takeaways

• Panelists see stablecoins as the likely “breakout application” over the next 3–5 years, expanding the on-chain financial ecosystem.

• Tokenized ETFs are viewed as inevitable once regulatory clarity and operational infrastructure align.

• Institutional buildout of crypto “plumbing” — custody, wallets, compliance and tokenization tools — is accelerating across traditional and digital-native firms.

Executives from WisdomTree, Galaxy Digital and Helix discussed the evolution of crypto markets and tokenization trends during a panel tied to events around Bank of New York Mellon’s industry conference circuit.

The discussion reflected a maturing tone. Rather than focusing on speculative tokens, executives emphasized infrastructure, regulation, and integration with traditional financial systems.

Why Crypto Corrected Despite Policy Tailwinds

Panelists acknowledged that crypto prices weakened in late 2025 and into 2026 despite a more supportive U.S. regulatory posture. Galaxy Digital’s Steve Kurz attributed the correction to macro factors and leverage unwinds, describing a roughly $19 billion deleveraging episode tied to broader credit tightening.

Unlike 2022, which he characterized as a structural breakdown in crypto market infrastructure, the current downturn was framed as cyclical. The underlying “plumbing” — custody systems, clearing processes and compliance standards — is materially stronger today.

Institutional participation has also changed crypto’s behavior. As digital assets become integrated into broader portfolios, they increasingly respond to macro rotations alongside equities, gold and alternative themes.

Regulatory Landscape: From Friction to Collaboration

Executives highlighted what they described as a more collaborative U.S. regulatory environment. Proposed legislation such as the Clarity Act and active engagement with the SEC were cited as positive signals.

WisdomTree’s Jonathan Steinberg referenced SEC recognition of exemptive relief for a tokenized money market fund enabling 24/7 trading and on-chain settlement. That structure allows the security to function as a native blockchain asset while maintaining regulatory oversight.

Galaxy Digital also described meetings with regulatory task forces exploring equity tokenization on a one-to-one ownership basis.

The consistent message: regulatory ambiguity remains, but dialogue has shifted from confrontation to implementation.

Stablecoins as the Breakout Application

Across the panel, stablecoins were identified as the most immediate growth vector.

Stablecoins provide efficient on-chain settlement and cross-border transfer capability, often outperforming traditional payment rails in speed and transparency. Panelists argued that expanding stablecoin adoption could catalyze demand for tokenized yield products and diversified digital portfolios.

Stablecoins are not speculative instruments; they are transactional infrastructure. Their growth may underpin the next phase of on-chain finance.

Tokenized ETFs: “Not If, But When”

Tokenized ETFs were described as a logical evolution once operational and regulatory barriers are resolved.

Steinberg suggested tokenized ETFs could replicate the transformation ETFs brought to mutual funds — offering transparency, atomic settlement, and broader access. Distribution remains constrained by licensing and custody frameworks, but first movers may gain brand advantage in emerging on-chain ecosystems.

The implication is structural. As younger investors increasingly engage with digital platforms, asset managers may need to meet them within tokenized environments rather than solely through traditional broker-dealers.

The Rise of Crypto Infrastructure Providers

Beyond asset issuers, panelists pointed to a growing stack of institutional infrastructure providers. Wallet systems, tokenization platforms, vault architecture, and compliance tools form the foundation of on-chain finance.

Kurz noted that Galaxy focuses on blockchain engineering rather than traditional custody, differentiating its role from established custodians such as BNY Mellon or State Street.

The evolution resembles early capital markets development: infrastructure often becomes as valuable as the assets it supports.

Strategic Interpretation

The conversation reflects a transition phase. Crypto markets are moving from price-driven narratives to infrastructure-driven strategy.

Stablecoins may expand transactional liquidity. Tokenized ETFs may reshape product distribution. Institutional “plumbing” buildouts suggest digital asset integration is progressing beneath surface volatility.

For investors, the focus shifts from speculative cycles to structural adoption.

For confidential discussions regarding digital asset infrastructure exposure, tokenization strategy positioning, and portfolio allocation within blockchain-enabled financial ecosystems, our senior advisory team is available for discreet consultation tailored to institutional and cross-border investment mandates.