BlackRock and JPMorgan Among 35 Major Firms Advancing Ethereum Initiatives

Recently, 35 prominent financial and technology companies, including industry giants such as BlackRock, JPMorgan, and Fidelity, have unveiled new products and services directly utilizing the Ethereum blockchain. This development, shared through a social media update from Ethereum’s official account, underscores a significant acceleration in the tokenization of real-world assets (RWAs) by mainstream entities. It indicates Ethereum’s growing significance as a foundational settlement layer in global finance, expanding its application beyond speculative cryptocurrency trading to include equities, bonds, and institutional payment systems. According to the Ethereum X account’s update on January 19, the recent surge in institutional adoption encompasses various offerings such as tokenized stocks, money market funds, stablecoins, and bank deposits. Notably, Kraken has launched xStocks on the platform, enabling eligible users to transfer fully collateralized U.S. equities on-chain, while Ondo Finance introduces a platform featuring over 100 tokenized U.S. stocks and ETFs backed by tangible securities. Major asset managers are also embracing this trend—Fidelity has rolled out its tokenized money market fund, FDIT, on Ethereum, and the Hong Kong division of China Asset Management has launched a tokenized USD money market fund, marking a first for a major Chinese asset manager. In Europe, Amundi has created a tokenized share class for its euro money market fund on the Ethereum mainnet. Additionally, banks are expanding their operations, with JPMorgan transitioning its JPM Coin deposit token from an internal blockchain to Base, an Ethereum Layer 2, while also launching its inaugural tokenized money market fund on Ethereum, backed by $100 million of its own capital. Societe Generale FORGE has introduced euro- and dollar-denominated lending and trading products on Ethereum-based decentralized finance protocols. Payment companies and fintech firms are also participating, highlighted by Stripe's expansion of stablecoin subscriptions using USDC on Ethereum, and SoFi launching SoFiUSD, becoming the first U.S. national retail bank to issue a stablecoin on a public blockchain. Furthermore, Google has announced a stablecoin-based agent payments protocol on Ethereum in collaboration with partners such as the Ethereum Foundation and Coinbase. The institutionally driven momentum coincides with increased on-chain activity, as Ethereum staking has now surpassed 30% of its supply, with approximately 36.2 million ETH currently locked, according to Ultrasound Money. Additionally, new wallet creation set a record earlier this month with nearly 394,000 new addresses made on January 11 alone. However, Ethereum co-founder Vitalik Buterin cautioned on January 18 that the growing complexity of the protocol could threaten its security and self-sovereignty in the long run, advocating for developers to prioritize simplicity. His remarks illuminate the ongoing tension between the expansion of institutional applications and the need to maintain a clear and robust foundational protocol. Recent developments highlight how Ethereum and its Layer 2 networks are becoming testing grounds for regulated tokenized finance, encompassing offerings from funds and equities to payments and settlements while debates surrounding governance and design continue alongside.