Citrini: Wall Street’s Tokenization Trend Could Outperform Bitcoin and Ether

According to Citrini Research, tokenized stocks, bonds and loans could unlock new opportunities in trading and lending, benefiting platforms and businesses that generate revenue by charging fees for these services.

Wall Street’s growing adoption of blockchain technology could create a significant new market for the crypto industry. However, investors seeking exposure to tokenization may find more attractive opportunities outside Bitcoin BTC $82,596.93 and Ether ETH $2,481.60 , according to research firm Citrini Research.

In a 79-page report titled Breaking the Wall, released Thursday, Citrini argued that moving stocks, bonds and other traditional financial assets onto blockchains could fuel new business models in trading, lending and payments.

Tokenization involves representing conventional financial assets as digital tokens that can move across platforms and potentially be traded 24 hours a day. For example, an investor could use a tokenized stock held in a digital wallet as collateral for a loan without relying on a traditional brokerage.

Citrini is known for its research into technology and financial markets, particularly artificial intelligence. It also operates one of Substack’s most-followed newsletters, with more than 263,000 subscribers. The firm’s AI research went viral earlier this year, triggering widespread concerns and contributing to a brief market sell-off.

The report said tokenization’s flexibility could support new opportunities for trading platforms, lenders, stablecoin issuers and firms responsible for maintaining securities ownership records. Companies and crypto protocols that collect fees from this expanding activity could emerge as the biggest beneficiaries.

“We can’t assume that majors, primarily BTC and ETH, will make new ATHs on this,” the report said, referring to all-time highs. “Even if they do, there are better expressions.”

Citrini’s stock picks for the tokenization trend

To help investors identify potential beneficiaries, Citrini outlined two groups of investments: publicly traded companies and cryptocurrency tokens.

The firm focused particularly on businesses positioned to earn revenue as more traditional financial activity shifts onto blockchain networks.

It identified tokenization company Securitize (SECZ), which connects blockchain-based tokens with the underlying securities they represent.

Crypto exchange Coinbase COIN $172.48 and online brokerage Robinhood HOOD $107.17 could benefit through their trading services and blockchain infrastructure. Stablecoin issuer Circle CRCL $80.83 may also gain if demand for its USDC stablecoin increases as a settlement method for transactions, the report said.

Other companies highlighted included Figure Technology Solutions (FIGR), which focuses on tokenized lending; SoFi SOFI $15.56 , which offers stablecoin payment services; and Bullish BLSH $31.82 , an exchange operator serving institutional digital asset markets. Bullish, the parent company of CoinDesk, is also acquiring share registrar Equiniti.

Crypto tokens that could benefit from tokenization

Citrini said it was “actually more excited” about its cryptocurrency token portfolio, arguing that it provides broader exposure to the tokenization trend than the relatively small group of publicly listed companies.

“If we’re right that stocks, commodities and other financial assets are moving onchain, then eventually all of the financial products built around those assets should follow them,” the report said.

Among its selections was Aerodrome (AERO), a trading platform that could earn fees from transactions involving tokenized stocks. Maple SYRUP $0.2307 was also included because it provides blockchain-based lending products for institutional investors.

The report identified Pendle (PENDLE), which allows users to trade future income generated by yield-bearing assets, and Ondo Finance ONDO $0.4811 , which offers tokenized U.S. Treasuries and stocks and has more recently expanded into perpetual futures.

Aave AAVE $167.98 was highlighted for its decentralized lending infrastructure, while Uniswap (UNI) provides a decentralized platform for trading tokens. Ethena (ENA), which issues stablecoins, was also included following its expansion into digital financial services spanning high-yield savings, cards and payments.

Citrini’s portfolio further featured ether.fi (ETHFI), which offers crypto-based financial services; Chainlink LINK $12.78 , which supplies market data infrastructure; and LayerZero ZRO $2.0572 , which enables communication between blockchain networks. The firm suggested all three could benefit as tokenized assets become more widely used across financial platforms and networks.

Derive DRV $0.4935 , a decentralized options trading protocol, also made the list. Citrini said it could gain if tokenized stocks and other financial assets encourage more derivatives trading to move onto blockchains.

The report additionally highlighted emerging perpetual futures platforms Lighter (LIT) and Variational (VAR). Perpetual futures, commonly called perps, allow traders to speculate on price movements without owning the underlying asset. Unlike conventional futures contracts, they do not have an expiration date.

Citrini noted that Hyperliquid (HYPE) has established itself as a leading blockchain-based venue for perpetual futures trading. It suggested Lighter and Variational could attract users as the broader market expands. The report also included Hyperliquid exposure in its stock portfolio through the Bitwise Hyperliquid ETF (BHYP).

Tokenization opportunities come with risks

Citrini cautioned that rising transaction volumes and increased blockchain activity do not automatically lead to higher cryptocurrency prices. Investors must assess how each protocol generates revenue, which entities collect transaction fees and whether token holders receive any portion of those earnings.

The report also highlighted several obstacles that could limit the sector’s growth, including liquidity fragmented across competing blockchains, security vulnerabilities that may slow adoption, and regulatory challenges surrounding synthetic tokenized stocks.

Such synthetic products can track the prices of traditional shares without necessarily giving investors the direct ownership rights or voting privileges associated with holding the underlying stocks.

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