Ethereum 2026: 5x Growth Window Opens, Institutions Scramble for Holdings, ETH Value Reassessed

Original Author: Vivek Raman, Etherealize

Original Compilation: Saoirse, Foresight News

Editor's Note: At the beginning of 2026, while global financial institutions are still searching for a definitive path for digital transformation, Ethereum has quietly become the core battleground for institutional deployment, leveraging a decade of accumulated security, scalable technical support, and a clear regulatory environment. From JPMorgan deploying a money market fund on a public chain, to Fidelity integrating asset management into a Layer1 network, to the U.S. GENIUS Act clearing regulatory hurdles for stablecoins, and platforms like Coinbase and Robinhood building dedicated blockchains on Layer2 — a series of actions confirm Ethereum's evolution from a "technology testing ground" to "global financial infrastructure." In this analysis, Etherealize's Vivek Raman not only deconstructs the underlying logic of Ethereum becoming the "best platform for business," but also predicts a "5x growth across three tracks" for tokenized assets, stablecoins, and ETH price. His interpretation of institutional holding trends and the inflection point of financial system "blockchainization" may provide key reference points for us to see the direction of the new year's crypto market and financial transformation.

Over the past decade, Ethereum has established itself as the most secure and reliable blockchain platform for global institutional adoption.

Ethereum technology has achieved scale, precedents for institutional application have been set, the global regulatory environment is open and welcoming to blockchain infrastructure, and the development of stablecoins and the process of asset tokenization are bringing fundamental changes.

Therefore, starting from 2026, Ethereum will become the best platform for conducting business.

After a decade of application promotion, stable operation, global adoption, and high availability assurance, Ethereum has become the preferred choice for institutions deploying blockchains. Next, let's review the key milestones over the past two years on how Ethereum gradually became the default platform for tokenized assets.

Finally, we will provide predictions for Ethereum in 2026: tokenization scale, stablecoin scale, and ETH price are all expected to achieve 5x growth. The stage for Ethereum's renaissance is set, and the timing is ripe for various enterprises to adopt Ethereum infrastructure.

Ethereum: The Core Platform for Tokenized Assets

Blockchain's transformation of the asset domain is akin to the internet's reshaping of the information domain — enabling assets to become digital, programmable, and globally interoperable.

Asset tokenization achieves digitization by integrating assets, data, and payments onto the same infrastructure, thereby comprehensively upgrading business processes. Assets like stocks, bonds, real estate, and funds will be able to flow at internet speed. This is a major upgrade the financial system should have achieved long ago, and now, global public blockchains like Ethereum are finally making this vision a reality.

Asset tokenization is rapidly evolving from a hot concept to a fundamental upgrade of business models. Just as no enterprise would abandon the internet to revert to the fax machine era, once financial institutions experience the efficiency, automation, and speed advantages brought by globally shared blockchain infrastructure, they will not return to traditional models; the tokenization process will be irreversible.

Currently, the vast majority of high-value asset tokenization is completed on the Ethereum platform — because Ethereum is the most neutral and secure global infrastructure, similar to the internet, it is not controlled by any single entity and is open to all users.

As of 2026, the "experimental phase" of asset tokenization has officially ended, and the industry has entered the deployment phase. Major institutions are directly launching flagship products on the Ethereum platform to access global liquidity.

Here are some examples of institutions conducting asset tokenization on Ethereum:

• JPMorgan directly deployed a money market fund on Ethereum, becoming one of the first banks to directly adopt a public blockchain;
• Fidelity launched a money market fund on Ethereum Layer1, integrating asset management and operational processes into the blockchain system;
• Apollo launched the private credit fund ACRED on a public blockchain, with Ethereum and its Layer2 networks offering the highest liquidity;
• BlackRock, as one of the most active proponents of the "tokenization of everything" concept, led the wave of institutional asset tokenization by launching the tokenized money market fund BUIDL on Ethereum;
• Amundi (Europe's largest asset manager) tokenized its euro-denominated money market fund on the Ethereum platform;
• BNY Mellon (the oldest bank in the United States) tokenized an AAA-rated Collateralized Loan Obligation (CLO) fund on the Ethereum platform;
• Baillie Gifford (one of the UK's largest asset managers) will launch its first-of-its-kind tokenized bond fund on Ethereum and its Layer2 networks.

Ethereum: The Core Blockchain for Stablecoins

Stablecoins are the first clear case of achieving "product-market fit" in the asset tokenization domain — stablecoin transfer volume exceeded $10 trillion in 2025. Stablecoins are essentially tokenized dollars, equivalent to a "software upgrade for money," enabling dollars to flow at internet speed and possess programmable characteristics.

2025 was a pivotal year for stablecoins and public blockchain development: the U.S. GENIUS Act (also known as the Stablecoin Act) was formally passed. This act established a regulatory framework for stablecoins in one fell swoop while giving the "green light" to the underlying public blockchain infrastructure for stablecoins.

Even before the passage of the GENIUS Act, Ethereum's stablecoin adoption rate was already far ahead. Today, 60% of stablecoins are deployed on Ethereum and its Layer2 networks (if Ethereum Virtual Machine compatible chains that may become Ethereum Layer2s in the future are included, this proportion reaches 90%). The introduction of the GENIUS Act marks Ethereum's official "opening for business applications" — institutions received regulatory approval to deploy their own stablecoins on public blockchains.

The key to the large-scale adoption of email and websites was access to a unified global internet (rather than fragmented internal networks). Similarly, stablecoins and all tokenized assets can only fully realize their utility and network effects within a unified global public blockchain ecosystem.

Therefore, the explosive growth of stablecoins has only just begun. A typical case is: U.S. national bank SoFi became the first bank to issue a stablecoin (SoFiUSD) on a permissionless public blockchain, ultimately choosing the Ethereum platform.

This is merely the "tip of the iceberg" for stablecoin development. Investment banks and neobanks are exploring issuing their own stablecoins individually or in consortiums, and fintech companies are also advancing stablecoin deployment and integration. The digitization of the U.S. dollar on public blockchains is fully underway, and Ethereum is the default platform for this process.

Ethereum: Building Dedicated Blockchains

Blockchain is not a "one-size-fits-all" tool. Global financial markets require customization based on differences in geography, regulatory systems, and customer groups. Precisely for this reason, Ethereum was designed from its inception with high security as a core goal and achieved a high degree of customization through "Layer2 blockchains" that can be flexibly deployed on top of it.

Just as every enterprise has its own dedicated website, application, and customized environment on the internet, many enterprises in the future will also have their own dedicated Layer2 blockchains within the Ethereum ecosystem.

This is not a theoretical architecture but a practical application already in place. Ethereum Layer2 has established precedents for institutional application, achieved scaled deployment, and become the core support for Ethereum's "business-friendly" characteristics. Here are some examples:

• Coinbase built the Base blockchain based on Ethereum Layer2, leveraging Ethereum's security and liquidity while opening up new revenue streams for itself;
• Robinhood is building its own dedicated blockchain, which will integrate tokenized stocks, prediction markets, and various assets, and is built using Ethereum Layer2 technology;
• SWIFT (the global bank messaging network) adopted the Ethereum Layer2 network Linea to conduct blockchain-based settlement business;
• JPMorgan deployed tokenized deposit services on the Ethereum Layer2 network Base;
• Deutsche Bank is building a public permissioned blockchain network based on Ethereum Layer2, laying the foundation for more banks to build Layer2 networks...

The value of Layer2 lies not only in customization; it is also the best business model in the blockchain field. Layer2 integrates Ethereum's global security while enabling profit margins exceeding 90% through operations, opening up new revenue sources for enterprises.

For institutions adopting blockchain technology, this is the best way to "have your cake and eat it too" — they can rely on Ethereum's security and liquidity while maintaining their own profit margins and operating a dedicated environment within the Ethereum ecosystem. Robinhood's choice to build its own blockchain based on Ethereum Layer2 stems from this consideration: "Building a truly decentralized, secure chain is extremely difficult... By leveraging Ethereum, we get security by default."

The global financial market will not concentrate on a single blockchain, but the global financial system can achieve synergy through an interconnected network — this network is precisely Ethereum and its Layer2 ecosystem.

The Transformation of the Regulatory Environment

Without regulatory support, a fundamental upgrade of the global financial system is impossible. Financial institutions are not tech companies; they cannot innovate through a "fail-fast" approach. The flow of high-value assets and funds requires a sound regulatory framework, and the United States is taking a leading role in this area:

• Under the leadership of U.S. SEC Chairman Paul Atkins, the first pro-innovation regulatory system since Ethereum's inception in 2015 has been formally established. Institutions have actively embraced asset tokenization, the financial system is preparing to migrate to digital infrastructure, and Atkins himself stated that "within the next two years, all U.S. markets will be operating on-chain."
• The U.S. Congress also supports the responsible adoption of blockchain technology. The GENIUS Act passed in 2025 (mentioned earlier in the "Stablecoins" section) and the upcoming CLARITY Act (which will establish a comprehensive framework for asset tokenization and public blockchain infrastructure) have incorporated blockchain into the legal system, providing clear guidance for financial institutions to apply this technology.
• The Depository Trust & Clearing Corporation (DTCC), while not a government agency, is the core infrastructure operator for the U.S. securities market. The institution has fully embraced asset tokenization, allowing assets deposited with the Depository Trust Company (DTC) to circulate on public blockchains.

For over a decade, the blockchain ecosystem existed in a long-term "regulatory gray area," suppressing its potential for institutional-grade application. Now, led by the U.S., the regulatory environment has shifted from a "headwind" to a "tailwind." The stage for Ethereum to become the "best platform for business" and achieve vigorous development is fully set.

ETH: An Institutional-Grade Treasury Asset

Ethereum has established its position as the "most secure blockchain," making it the default choice for institutional adoption. Based on this, in 2026, ETH will be repriced to stand alongside BTC as an "institutional-grade store of value asset."

The blockchain ecosystem will have more than one store of value asset: BTC has established its position as "digital gold," while ETH becomes "digital oil" — a store of value asset with yield, utility, and an underlying ecosystem driving economic activity.

MicroStrategy, as the enterprise holding the most Bitcoin, led the process of BTC becoming a store of value asset. Over the past four years, MicroStrategy continuously added BTC to its treasury assets, advocating for BTC's value proposition, making it a core category in institutional digital asset holdings.

Now, the Ethereum ecosystem has seen the emergence of 4 "MicroStrategy-like" enterprises, pushing ETH to achieve a similar breakthrough:

• BitMine Immersion (Ticker: BMNR), operated by Tom Lee;
• Sharplink Gaming (Ticker: SBET), operated by Joe Lubin and Joseph Chalom;
• The Ether Machine (Ticker: ETHM), operated by Andrew Keys;
• Bit Digital (Ticker: BTBT), operated by Sam Tabar.

MicroStrategy holds 3.2% of BTC's circulating supply. The aforementioned four ETH-holding enterprises have collectively purchased approximately 4.5% of ETH's circulating supply in the past 6 months — and this process has only just begun.

As these four enterprises continue to add ETH to their balance sheets, institutional ownership stakes in these ETH-holding companies are rapidly increasing. ETH is expected to be repriced to stand alongside BTC as an institutional-grade store of value asset.

2026 Ethereum Predictions: 5x Growth

Tokenized Assets: 5x Growth to $100 Billion

In 2025, the total value of tokenized assets on blockchain grew from approximately $6 billion to over $18 billion, with 66% deployed on Ethereum and its Layer2 networks.

The global financial system has only just begun the asset tokenization process, with institutions like JPMorgan, BlackRock, and Fidelity already using Ethereum as the default platform for high-value tokenized assets.

We predict that the total scale of tokenized assets will achieve 5x growth in 2026, reaching nearly $100 billion, with the vast majority deployed on the Ethereum network.

Stablecoins: 5x Growth to $1.5 Trillion

Currently, the total scale of stablecoins on public blockchains is $308 billion, with about 60% deployed on Ethereum and its Layer2 networks (if Ethereum Virtual Machine compatible chains that may become Ethereum Layer2s in the future are included, this proportion reaches 90%).

Stablecoins have become a strategic asset for the U.S. government. The U.S. Treasury Department has repeatedly stated that stablecoins are a core initiative for consolidating the dollar's dominance in the 21st century. Currently, the total U.S. dollar circulation is $22.3 trillion. With the implementation of the GENIUS Act and the launch of large-scale stablecoin adoption, it is estimated that 20%-30% of U.S. dollars will migrate to public blockchains.

We predict that the total market capitalization of stablecoins will achieve 5x growth in 2026, reaching $1.5 trillion, with Ethereum playing a leading role in this process.

ETH: 5x Growth to $15,000

ETH is rapidly developing into an institutional-grade store of value asset alongside BTC. ETH is a "call option" on the growth of blockchain technology, and its value appreciation will benefit from the following trends:

• The scaling expansion of asset tokenization
• The widespread application of stablecoins
• The institutional adoption process of blockchain
• The "ChatGPT moment" for the financial system's upgrade to the internet era (referring to the industry transformation inflection point brought by technological breakthroughs)

Holding ETH is equivalent to holding equity in the "new financial internet." Its value growth logic is clear: increases in user base, asset scale, number of applications, Layer2 networks, and transaction frequency will all drive ETH's value upward.

We predict that ETH will achieve at least a 5x value increase in 2026 (market capitalization reaching $2 trillion, comparable to BTC's current market cap), ushering in ETH's own "NVIDIA moment" (referring to the key phase of explosive growth similar to NVIDIA's due to the AI wave).

Ethereum: The Best Platform for Business

As of 2026, the discussion of "why adopt blockchain" is a thing of the past. Now, institutions are fully competing in asset tokenization, stablecoin application, and customized blockchain deployment; the structural upgrade of the global financial system has already begun.

When choosing blockchain infrastructure, institutions prioritize factors including: long-term operational track record, application precedents, security, liquidity, availability, and risk level — and Ethereum performs optimally across all dimensions. Ethereum is the ideal choice if an enterprise has the following needs:

• Increase profit margins? Achieve cost reduction through asset tokenization, reduce fees using stablecoins, and build a dedicated blockchain based on Ethereum.
• Open up new revenue sources? Build structured products on the Ethereum platform, launch new types of assets, issue your own stablecoin.
• Achieve business digital upgrade? Leverage Ethereum to optimize operational processes, achieve accounting and payment automation, and reduce manual reconciliation work.

2025 was an inflection point for Ethereum's development: infrastructure upgrades were completed, institutional pilot projects achieved scale, and the regulatory environment turned favorable.

In 2026, the global financial system will experience its "internet moment" — and this transformation will occur on Ethereum, the best platform for business.