Why Wall Street Is Adopting Ethereum for AI and Tokenization

• Bitwise research head calls Ethereum the core infrastructure for Wall Street’s adoption of AI
• Wall Street’s ETH adoption is proven by Bitwise’s $6 billion treasury holding
• This institutional adoption focuses on Ethereum’s key role in asset tokenization

Ethereum (ETH) is being championed as the central pillar for Wall Street’s blockchain-powered future, with a growing focus on its critical role in both finance and artificial intelligence. Tom Lee, Head of Research at Bitwise Asset Management, argued during a recent Manhattan event that Ethereum is positioned to become the core infrastructure for all financial activity and digital asset tokenization.

According to Lee, whose remarks were first reported by Bloomberg, the network’s staking mechanisms are key to aligning institutional interests with Ethereum’s long-term development. He presented Ethereum as the essential bridge between Wall Street’s ambitions and the emerging world of AI-driven solutions. His argument carries weight, as Bitwise itself holds over $6 billion in ETH, making it one of the largest corporate treasuries of the asset.

Why Wall Street is Adopting ETH

Launched in 2015, Ethereum has already proven itself as the backbone for decentralized finance and tokenization. Every transaction on its network requires ETH for gas fees, directly tying demand for the asset to the ecosystem’s growth. As global finance gears up for mass tokenization, Ethereum’s battle-tested infrastructure remains the primary focus for major enterprises.

This has led several companies, including Bitwise and SharpLink Gaming, to add ETH to their corporate treasuries. Joseph Lubin, a co-founder of Ethereum, highlighted the significance of this trend alongside Lee. By accumulating ETH and removing it from the open market, these firms view holding the asset as a core long-term financial strategy, which some analysts believe is helping Ethereum Layer 2 Adoption Drive 62.7% Weekly Growth as Unichain and Base Lead Usage.

New Challengers Eye Ethereum’s Crown

Despite Ethereum’s dominant position, emerging projects are preparing to challenge its reign. Stablecoin issuer Circle is developing its own Layer-1 blockchain for enterprise-grade payments, and fintech giant Stripe is reportedly building a similar infrastructure. Both projects could compete directly with Ethereum for the lucrative title of digital finance’s base layer, even as the Ethereum Layer 2 Network Base is set to Break Records with Huge Growth in 2024.

These moves signal a rapidly maturing and competitive blockchain ecosystem, where financial institutions will have multiple high-quality options for large-scale tokenization.

Ethereum’s Current Market Standing

During the time of writing, Ethereum traded at $4,333.25, recording a 0.54% gain over 24 hours. Its market capitalization stood at $523.05 billion, with 120.7 million ETH in circulation. Daily trading volume dropped by 26.04% to $34.97 billion, although the token continued to hold above $4,300.

Price fluctuations marked the session, with ETH dipping during afternoon hours before rebounding near 6:00 PM. By 9:00 AM, Ethereum reached its daily peak, crossing $4,325. The volume-to-market cap ratio of 6.67% displayed low liquidity relative to its size.