According to the author, tokenization is evolving with stablecoins like USDT and USDC demonstrating strong product-market fit, facilitating over $250 billion in crypto trades for BTC and ETH through partnerships with companies such as MoneyGram and PayPal. The author states that next phases include tokenizing structured credit and private funds, which could enhance market transparency, reduce costs, and improve liquidity, potentially accelerating crypto adoption. Regulatory developments like the GENIUS Act may drive this growth, impacting trading volumes and institutional interest in blockchain assets.

According to Galaxy, tokenization has demonstrated clear product-market fit with stablecoins like USDC and Tether reaching over $250 billion in supply, serving as efficient trading pairs for BTC and ETH in cross-border payments and crypto trades, which enhances liquidity and reduces transaction costs. Galaxy notes that tokenized money market funds such as BUIDL and ONDO provide on-chain risk-free rates for collateral and treasury management, benefiting crypto-native traders. Galaxy predicts that structured credit and private funds are next for tokenization, potentially lowering issuance costs and increasing secondary market liquidity through smart contracts, while regulatory progress like the GENIUS Act could accelerate adoption and impact crypto trading volumes.