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Tokenization Growth Breaks Free
The institutional demand for blockchain-powered tokenization is no longer dependent on Bitcoin’s price movements, signaling a maturing phase for the crypto industry. According to Thomas Cowan, head of tokenization at Galaxy Digital, traditional financial institutions now see tokenization as a long-term, independent opportunity rather than a side effect of crypto market cycles.
Speaking at The Bridge conference in New York City, Cowan told Cointelegraph that “there has been a separation of the interest in tokenization from the price of Bitcoin” in recent months. This shift marks a crucial step in the evolution of blockchain technology, as it begins to serve as a foundational tool for global finance rather than a speculative trend.
Institutional Demand Strengthens
Cowan highlighted that in past crypto cycles, institutional enthusiasm for blockchain technology closely mirrored Bitcoin’s price. “In previous cycles, as Bitcoin and other alts have run up, there’s been an interest in tokenization,” he explained. “All the major traditional financial institutions built out their crypto and tokenization teams, and when prices crashed, those teams got much smaller.”
This time, however, the story is different. Cowan said the industry is witnessing genuine institutional adoption independent of crypto’s volatility.
“Now, I think we’re getting to the point where it’s almost independent of the price of Bitcoin,” he said. “People see the benefits that blockchain can have to move and store traditional financial assets.”
The sentiment reflects a broader trend across global finance—real-world asset (RWA) tokenization has become one of the fastest-growing sectors in crypto, as institutions explore blockchain for efficiency, transparency, and liquidity improvements.
Real-World Asset Expansion
Tokenization, the process of representing traditional assets like bonds, oil, or real estate as digital tokens on a blockchain, has surged in 2024 and 2025. The Trump administration’s eased regulatory stance on cryptocurrencies has further accelerated the sector’s expansion, opening the door for banks, investment firms, and fintechs to enter the market.
Galaxy Digital, a leading crypto investment firm, has been a central player in this space. Its tokenization division helps bridge traditional finance with blockchain infrastructure, giving institutional clients tools to issue and manage digital representations of assets securely.
While Bitcoin (BTC) has fluctuated dramatically—peaking above $126,000 in October before retreating nearly 20% to around $102,000—the tokenization sector has maintained steady growth. This decoupling suggests a new era where tokenized asset demand is driven more by utility and financial efficiency than by crypto market speculation.
Clear Benefits Must Be Shown
Despite the growing enthusiasm, Cowan emphasized the importance of demonstrating the practical benefits of tokenization to large institutions. “For these large organizations that think in decades, you really want to make sure that we’re demonstrating the clear benefits that this technology has,” he said.
He believes the next major phase for the industry will be about proving that tokenization offers a “better, faster, cheaper way” for financial institutions to move and store assets. The focus is shifting from hype to efficiency, cost reduction, and operational security.
Cowan added that these organizations view blockchain as the inevitable back-end infrastructure of future financial systems.
“They just see that technology as something that is going to be the back end of their financial institutions,” he said.
This sentiment echoes across the financial world, where banks and asset managers are quietly building blockchain infrastructure to tokenize portfolios and streamline capital flows.
Stablecoins and Money Funds Rising
Cowan also pointed to stablecoins as one of the strongest use cases for blockchain adoption. With new U.S. stablecoin regulations passed earlier this year, institutional demand has skyrocketed. “Stablecoins are off to the races,” Cowan said, referring to their role as a bridge between traditional finance and digital asset markets.
He added that tokenized money market funds are becoming a natural next step for investors seeking higher yields on-chain. These funds—often backed by government bonds—are attracting capital from institutions seeking risk-free returns without leaving the blockchain ecosystem.
“As people move their capital on-chain, they want that risk-free rate that they’re forgoing when they’re holding stablecoins,” Cowan noted. “A very logical next step is to go from stables to money market funds.”
A Transformative Investment Moment
According to Cowan, the industry is reaching a tipping point where tokenization technology will begin to prove itself at scale. The adoption curve is accelerating, and major financial firms that hesitated in past crypto cycles are now preparing to make serious investments.
“This is the time to invest,” he said. “Because they’re going to see it really happen in the next couple of years.”
With Bitcoin’s dominance as a market driver gradually fading, the broader crypto ecosystem—especially tokenization—is stepping into a new era of independence. The shift signals that blockchain is no longer a speculative technology tied to Bitcoin’s price swings but a core innovation reshaping global finance.