Tokenized Traditional Assets Could Outshine Bitcoin and Ether, Citrini Report Says

Citrini Research believes the growing movement of traditional financial assets onto blockchains could create investment opportunities beyond Bitcoin and Ether, particularly for companies and crypto protocols that earn fees from tokenized markets.

In its latest 79-page report, Breaking the Wall, released Thursday, the research firm argued that Wall Street’s adoption of blockchain technology could unlock new business opportunities across trading, lending and payment services.

Rather than focusing exclusively on Bitcoin BTC $82,596.93 and Ether ETH $2,481.60 , Citrini suggested investors consider businesses and digital assets that could benefit directly from the expansion of tokenization.

Tokenization converts traditional financial assets into digital tokens that can be transferred across blockchain networks and potentially traded at any time. For example, tokenized shares could be used as collateral for loans through a digital wallet, reducing the need for conventional brokerage arrangements.

Citrini has established a reputation for its research on technology and financial markets, particularly artificial intelligence. Its Substack newsletter has more than 263,000 followers. Earlier this year, its AI analysis attracted widespread attention and contributed to a brief period of market turmoil.

The report identified trading platforms, lending providers, stablecoin issuers and securities recordkeeping companies as potential beneficiaries of tokenization. Citrini believes businesses and crypto projects that collect transaction fees could capture a significant portion of the value created by the transition.

“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.”

Publicly traded firms positioned for growth

Citrini divided its investment ideas into two categories: listed companies and cryptocurrency tokens. Its equity selections focused on businesses that could generate revenue as more financial activity shifts onto blockchain infrastructure.

Securitize (SECZ) featured for its role in connecting digital tokens with the underlying securities they represent.

The report also identified Coinbase COIN $172.48 and Robinhood HOOD $107.17 , citing their trading businesses and blockchain infrastructure. Circle CRCL $80.83 could benefit if its USDC stablecoin sees greater use in settling transactions involving tokenized assets.

Other companies included Figure Technology Solutions (FIGR), which operates in tokenized lending; SoFi SOFI $15.56 , which offers stablecoin payment services; and Bullish BLSH $31.82 , an institutional digital asset exchange operator. Bullish, CoinDesk’s parent company, is acquiring share registrar Equiniti.

Crypto projects with potential upside

Citrini expressed greater enthusiasm for its crypto-token selections, arguing that they provide a wider range of opportunities to benefit from the growth of onchain financial markets.

“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 picks was Aerodrome (AERO), a trading platform that could generate fees from tokenized stock transactions. Maple SYRUP $0.2307 was included for its blockchain-based lending products designed for institutional investors.

Pendle (PENDLE), which allows investors to trade future income from yield-bearing assets, also featured in the portfolio. Citrini selected Ondo Finance ONDO $0.4811 for its tokenized U.S. Treasury and stock offerings, as well as its more recent expansion into perpetual futures.

The report also highlighted Aave AAVE $167.98 for decentralized lending, Uniswap (UNI) for decentralized token trading, and Ethena (ENA), a stablecoin issuer that has expanded into digital financial services such as savings, cards and payments.

Additional selections included ether.fi (ETHFI), which offers crypto-based financial services; Chainlink LINK $12.78 , a provider of market data infrastructure; and LayerZero ZRO $2.0572 , which enables communication between blockchain networks. These projects could benefit as tokenized assets become increasingly integrated into financial applications and blockchain ecosystems.

Citrini also included Derive DRV $0.4935 , a decentralized options trading protocol that could gain from increased derivatives activity involving tokenized stocks and other financial assets.

Emerging perpetual futures venues Lighter (LIT) and Variational (VAR) were also mentioned. Perpetual futures, often called perps, allow traders to speculate on price movements without owning the underlying assets and do not have a fixed expiration date.

Citrini described Hyperliquid (HYPE) as a leading blockchain-based platform for perpetual futures. It suggested that Lighter and Variational could attract more users as the market develops. The report also included exposure to Hyperliquid through the Bitwise Hyperliquid ETF (BHYP) in its stock portfolio.

Key risks to consider

Citrini warned that greater trading activity and increased blockchain usage do not automatically lead to higher token prices. Investors need to understand how protocols generate revenue, which parties collect transaction fees and whether token holders receive any direct benefit.

Other concerns include liquidity being spread across competing blockchain networks, security vulnerabilities and regulatory obstacles that could slow adoption.

Synthetic tokenized stocks also carry limitations. While these products can provide exposure to share prices, they may not grant investors the direct ownership or voting rights associated with traditional stockholdings.