Rebecca Cruz Tokenization demand is now growing independently of Bitcoin, says Galaxy’s Thomas Cowan, as institutions embrace blockchain for real-world assets and long-term financial infrastructure.
Tokenization Demand No Longer Linked to Bitcoin’s Volatility
The conversation around tokenization has entered a new era. According to Galaxy’s head of tokenization Thomas Cowan, institutional enthusiasm for blockchain-based asset representation has grown beyond the shadow of Bitcoin’s market movements. Speaking at The Bridge conference in New York City, Cowan emphasized that tokenization demand has become self-sustaining, with investors and financial institutions recognizing its structural benefits regardless of crypto price trends.
In previous bull cycles, institutions rushed to explore blockchain technology when Bitcoin prices surged, only to retreat when the market corrected. This time, Cowan said, the narrative has shifted. Institutions are not reacting to speculative rallies but instead are laying the groundwork for long-term digital infrastructure built around tokenized assets.
The focus on tokenization is a natural evolution for markets increasingly digitizing everything from equities to real estate. The ability to represent and transfer traditional assets securely and efficiently on blockchain rails is turning heads across the financial landscape.
Institutional Focus Shifts Toward Real Utility
The changing tone among institutional players highlights a broader maturing of the digital asset sector. Cowan pointed out that companies are no longer chasing short-term crypto exposure but are studying tokenization as a solution for legacy inefficiencies. The Trump administration’s recent easing of cryptocurrency regulations has further accelerated this shift, encouraging Wall Street’s top firms to re-enter the space with renewed purpose.
Bitcoin itself has remained volatile through 2025, briefly crossing $126,000 before pulling back to around $102,000. Yet tokenization discussions have continued to grow even during this price dip a clear sign that the narrative is no longer tied to Bitcoin’s fortunes.
Institutions are approaching tokenization from a purely operational perspective, viewing blockchain as a better system for asset movement and recordkeeping. Cowan explained that for financial firms that operate on long timelines, demonstrating blockchain’s reliability and scalability is more important than riding short-term price cycles.
Tokenization as the Backbone of Modern Finance
Cowan believes the coming year will be critical in proving the tangible advantages of tokenization. He urged the industry to showcase clear benefits such as lower costs, faster settlements, and enhanced transparency to win over traditional institutions.
“For large organizations that plan decades ahead, it’s essential to show that tokenization is not a passing trend but a permanent transformation,” Cowan said at the event. His vision is of a financial ecosystem where blockchain serves as the unseen infrastructure underpinning the movement of trillions in traditional assets.
This approach aligns with what major financial institutions are already testing from tokenized Treasury bonds to blockchain-based settlement networks. The shift is not about chasing headlines but about building a foundation for future finance, where tokenization becomes as common as online banking.
From Stablecoins to Tokenized Money Market Funds
Among the most promising applications of tokenization are stablecoins and tokenized money market funds. Stablecoins have already become one of crypto’s largest success stories in 2025, following new U.S. regulations that brought clarity and legitimacy to their use.
Cowan noted that investors are now looking beyond stablecoins to tokenized money market funds as a “logical next step.” These digital instruments, backed by assets such as government bonds, allow capital to earn a yield while staying onchain — blending traditional finance with blockchain efficiency.
“As more capital moves onchain, investors naturally seek yield on their digital assets,” Cowan said. “Transitioning from stablecoins to tokenized funds is the next logical phase for onchain finance.”
This trend underscores how tokenization is evolving into a comprehensive ecosystem. It’s not limited to speculative crypto assets but extends to regulated, yield-bearing products that appeal to institutional portfolios.
A Transformative Moment for Digital Finance
Cowan believes the tokenization industry is approaching a tipping point. After years of experimentation, the infrastructure and regulatory clarity are finally aligning to drive large-scale adoption.
He described this moment as a pivotal opportunity for financial institutions that have so far remained cautious. “This is the time to invest,” he said, predicting that the next few years will witness widespread integration of tokenized systems into mainstream finance.
Tokenization is no longer an extension of Bitcoin enthusiasm it’s becoming the backbone of how assets will be issued, traded, and stored in the digital age. For institutions seeking efficiency and security, blockchain’s role as a transparent and programmable ledger offers a transformative leap beyond traditional systems.
As the global financial system gradually moves onchain, tokenization is emerging as the cornerstone of that transition. The market’s independence from Bitcoin signals a new level of maturity for digital assets one where technology, not speculation, drives progress.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
