Beyond the Hype: Financial Leaders at BNY Mellon Forum Point to Stablecoins and Tokenized ETFs as Next Frontier
NEW YORK – The recent crypto market downturn hasn't dimmed the long-term vision of industry leaders, who see a seismic shift occurring beneath the price charts. At a panel during the 34th Annual U.S. Financial Services Conference, top executives framed the current environment as a critical building phase, with tokenization of real-world assets moving from concept to concrete implementation.
Moderated by Craig Siegenthaler, Bank of America's North American head of diversified financials, the discussion moved beyond speculative trading to focus on the institutional "plumbing" being constructed on blockchain networks. The consensus: while retail sentiment fluctuates, the groundwork for a new financial system is being laid.
Addressing the market correction that began in late 2025, Galaxy Digital's Steve Kurz pointed to macroeconomic factors and a "mini credit correction" in October that triggered significant deleveraging. "Crypto now competes at scale with traditional assets," Kurz noted, suggesting its price movements are increasingly tied to broader market forces rather than operating in isolation. He contrasted the current slump with the 2022 crisis, describing the earlier period as a "Lehman event" for an unsound market structure, whereas today's infrastructure is fundamentally stronger. "We're in a bull market for infrastructure, even if asset prices don't yet reflect it," he stated.
Regulatory winds are shifting, a change underscored by several panelists. WisdomTree founder and CEO Jonathan Steinberg called the current U.S. administration's stance on digital assets "night and day" compared to its predecessor. He highlighted the SEC's engagement, citing regulatory approval for WisdomTree's tokenized money market fund, which is expected to enable "24/7 trading and settlement on-chain" by month's end. "The security will act like a native asset on chain," Steinberg said, framing it as a pivotal step.
Kurz revealed that Galaxy Digital, now Nasdaq-listed, met with the SEC's crypto task force to explore tokenizing its own equity on a one-to-one basis. "The ability to have a constructive dialogue with regulators represents a major shift from just six months ago," he observed.
The Next Wave: Stablecoins and On-Chain ETFs
The panel identified two immediate growth vectors. First, stablecoins. Kurz called stablecoin growth "the breakout application" that will expand the on-chain economy over the next three to five years. Helix founder David Post argued stablecoins are "superior" for moving value compared to legacy systems, pointing to discussions about the NYSE allowing 24/7 trading of tokenized stocks as evidence of infrastructure catching up.
Second, tokenized exchange-traded funds (ETFs). Steinberg asserted that tokenized ETFs are "definitely going to happen," positioning them as the natural evolution that could do to traditional ETFs what ETFs did to mutual funds. He cited features like "atomic settlement" – instant and simultaneous transfer – as a key unlock for institutional capital. While acknowledging that platforms like Coinbase currently lack licenses to hold tokenized securities, both Steinberg and Kurz suggested regulatory collaboration could accelerate timelines.
Building the Institutional Stack
The discussion concluded with a focus on the emerging "picks and shovels" providers. Kurz described a new institutional stack encompassing wallet infrastructure, tokenization platforms, and compliance tooling. Steinberg emphasized WisdomTree's commitment to interoperability across multiple blockchains, expecting a future where open and permissioned networks work in tandem.
Kurz clarified Galaxy's role as a builder rather than a custodian, stating they are "not competitive to a Bank of New York Mellon or a State Street," but instead focus on the core engineering and cross-jurisdictional integration required for this new layer of finance.
Reader Reactions
Michael Chen, Portfolio Manager at a Boston-based Hedge Fund: "The focus on infrastructure is the correct one. The last cycle proved speculation alone isn't sustainable. What they're describing – tokenized Treasuries, 24/7 settlement – is about efficiency and access. That's a tangible value proposition for institutions."
Sarah Jennings, Fintech Consultant: "I'm cautiously optimistic. The regulatory progress Steinberg mentioned is real, but it's piecemeal. The 'Clarity Act' is crucial for providing the durability large asset managers need to fully commit. Until then, we're still in pilot mode."
David Park, Independent Crypto Analyst (sharper tone): "This is the same old song. 'Infrastructure is building, just ignore the crashing prices.' They've been selling this 'next wave' narrative for years while retail gets burned. Tokenized ETFs? We can't even get clean, audited on-chain reserves for the major stablecoins. This panel was a masterclass in repackaging vaporware for institutional suits."
Rebecca Foster, University Economics Professor: "The most insightful point was about crypto 'competing at scale.' Its maturation means it's no longer a curiosity but part of the global financial system, subject to its flows and crises. The discussion about stablecoins expanding the on-chain economy is essentially about creating a new, parallel payments rail – that's where the real disruption lies."
This article is based on a panel discussion at the 34th Annual U.S. Financial Services Conference and has been expanded with additional context and analysis.