Financial Advisors Pivot Beyond Bitcoin as Stablecoins and Tokenisation Take Center Stage

Stablecoins and tokenisation are becoming the primary areas of interest for financial advisers exploring digital assets, according to Bitwise Chief Investment Officer Matt Hougan. Drawing on meetings with more than 40 advisers, Hougan said the industry’s focus is moving beyond Bitcoin and towards blockchain-based financial applications.

According to Hougan, advisers remain engaged with crypto despite the ongoing market downturn. However, discussions are increasingly centred on the use of stablecoins and tokenised assets in financial services, particularly within payments networks and capital markets.

He said the growing emphasis on these sectors is linked to a decline in interest around Bitcoin’s inflation-hedge thesis, while tokenisation and stablecoins have gained prominence across broader financial discussions. Hougan pointed to comments from leading figures including SEC Chair Paul Atkins, Goldman Sachs chief executive David Solomon and BlackRock chief executive Larry Fink as evidence of that trend.

Although Hougan maintains that Bitcoin trading above US$60,000 (AU$83,400) remains appealing from a long-term investment perspective, he said advisers are demonstrating greater curiosity about blockchain technologies with direct real-world utility.

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Crypto’s Next Catalyst 

Hougan suggested that new products and applications, including stablecoins, tokenisation and perpetual futures, could help drive the next phase of growth for the digital asset industry. He also argued that continued participation from financial advisers and institutional investors could play an important role in future market expansion.

Among the assets he highlighted as potential beneficiaries of tokenisation trends were Ethereum, Solana, Chainlink and Avalanche. Hougan added that advisers responsible for more than US$175 trillion (AU$243.25 trillion) in assets have developed a far more nuanced understanding of crypto’s potential than in previous years.

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