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The cryptocurrency industry is changing its tack. Stakeholders across the digital asset ecosystem are no longer arguing that the old financial system should be replaced. Instead, they are trying, more pragmatically, to plug into the machinery that already exists.
The clearest signals of the sector’s maturation came not from a startup demo day, but from the World Economic Forum in Davos this week, where tokenization was discussed not as a moonshot but as a cost-reduction tool. Executives from market infrastructure firms, banks, crypto-native companies and even nation-level actors converged on a shared conclusion: tokenization is finally doing something useful at scale.
Outside of the ritz and glitz of Switzerland, the rest of the week’s headlines underscored the ongoing shift in opinion and execution from whether blockchain works, to where it can work without breaking the institutional scaffolding that keeps markets stable.
In Washington, crypto legislation found itself stalled not by existential fear but by legislative triage; while across the FinTech marketplace and corporate boardrooms, chief financial officers (CFOs) are being asked to evaluate tokenized assets with the same sober calculus applied to any new market structure. Crypto, in short, may be entering an unglamorous but potentially decisive phase of mainstream integration.
Read more: This Week in Stablecoins: Card Payments, Crypto Policies and Bank Pushback
When Crypto Infrastructure Starts Acting Like Infrastructure
Perhaps the most consequential signal of tokenization’s maturation is its arrival inside legacy capital markets. The New York Stock Exchange (NYSE) on Monday (Jan. 19) announced it was developing a platform for the trading and on-chain settlement of tokenized securities, for which it will seek regulatory approvals.
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For CFOs and institutional investors, this raises practical questions rather than philosophical ones. Tokenization promises faster settlement and lower operational costs, but it also introduces new considerations around accounting, compliance and counterparty exposure. The fact that these conversations are happening at all suggests that tokenization has crossed an important threshold and is now being evaluated with the same rigor as any other market infrastructure upgrade.
At Davos, Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse, Standard Chartered CEO Bill Winters and French central bank Governor François Villeroy de Galhau each detailed how, with tokenization capabilities, costs are falling, settlement times are shrinking and cross-border frictions are easing as tokenized instruments move through parallel rails to traditional systems.
Stablecoins have emerged as the first proof point for this approach. They demonstrate that tokenized representations of value can circulate globally, settle quickly and maintain sufficient trust to be used repeatedly. But even here, enthusiasm is tempered by realism. Without regulatory guardrails and credible public anchors, private digital money risks fragmenting monetary sovereignty rather than modernizing it.
Elsewhere, Binance’s co-founder and ex-CEO is reportedly in discussion with several countries about tokenizing their assets. This concept could let countries raise funds by offering small portions of state-owned assets to citizens or investors, in the way that some countries have sold stakes in nationalized businesses.
Zhao left Binance in 2023 after the U.S. Justice Department accused him of violating the Bank Secrecy Act. He was later pardoned by the Trump administration.
Also in Monday and in a similar vein, Bermuda announced it is set to become “the world’s first fully onchain national economy” with the help of stablecoin issuer Circle and cryptocurrency exchange Coinbase.
See also: Digital Dollars Keep Getting Stuck Outside the Real Economy
Payments Are Still the Hard Part for Blockchain Finance
If tokenization is gaining institutional traction, payments remain its most stubborn bottleneck. Stablecoins may move seamlessly on-chain, but converting them into something usable in the real economy continues to be a friction-heavy process. Cashing out remains expensive, slow, and dependent on banking relationships that are often fragile or jurisdictionally constrained.
This is the gap that a new generation of startups is racing to close. Pomelo’s plan to launch a stablecoin-linked card following a $55 million funding round is emblematic of this strategy. Rather than asking consumers or merchants to change behavior, these companies are embedding crypto into familiar payment formats.
Similarly, WalletConnect Pay’s push to scale crypto payments at checkout reflects a broader recognition that technical capability is not the limiting factor. User experience is. Cryptocurrency will not replace cards or real-time payments unless it can disappear behind interfaces that feel as seamless as what already exists.
The throughline across these developments is a steady retreat from absolutism. Early crypto narratives were animated by the idea that decentralization itself was the value proposition. Today’s narrative is more restrained. Tokenization is valuable when it reduces friction. Stablecoins matter when they move money more efficiently. Blockchain earns its place when it improves resilience or access without destabilizing what already works.
This is not the revolution many early adopters imagined, but it may be the one that lasts.