More and more institutions are using Ethereum as an infrastructure for digital payments and financial settlement. While the name of the network is rarely explicitly mentioned in official communications. What’s behind the silent rise of Ethereum (ETH) on Wall Street?
Ethereum as the silent backbone of financial innovation
Ethereum is playing an increasingly important role in the modern financial system, despite institutions rarely mentioning the network by name. Banks and asset managers use the technology behind Ethereum to automate settlement, issue stablecoins and manage tokenized funds. This adoption is largely taking place under the heading of “blockchain infrastructure” or “onchain transactions”, without explicit reference to Ethereum as a crypto asset.
According to data from the fourth quarter of 2025, the Ethereum network now processes more than five trillion dollars in transactions per quarter. This puts it on a scale comparable to traditional financial networks. In this context, Ethereum is not an investment, but a digital settlement layer on which institutions execute transactions without manual intervention.
Its technological core, the Ethereum Virtual Machine (EVM), is increasingly considered the standard for programmable financial infrastructure. For example, VanEck CEO Jan van Eck called Ethereum “the Wall Street token” in August.
Smart contracts replace manual processes
An important advantage of Ethereum is the ability to automate settlement via smart contracts. Where traditional systems rely on multiple intermediaries, Ethereum enables instant and simultaneous asset transfer and payment. Previously, transaction settlement took an average of two days.
On Ethereum, these steps are replaced by one automated process that takes place within seconds. This efficiency allows banks to reduce costs and errors. At the same time, a uniform, digital “source of truth” is created that parties can rely on without the intervention of central clearing houses.
In this setup, Ethereum acts as a financial infrastructure, not a speculative asset. Banks use the network to move value, manage risk and streamline operational processes. This all happens without the need to explicitly label it as “Ethereum”.
Stablecoins as a bridge to regulated dollar transfers
Ethereum’s role in banking was strengthened this year by the introduction of regulated stablecoins. Since the introduction of the American GENIUS Act on July 18, 2025, banks have been allowed to issue stablecoins through subsidiaries. This has led to a sharp increase in the use of stablecoins on Ethereum, whose total market capitalization now amounts to $300 billion.
Major payment processors such as Visa and Mastercard also use Ethereum-based stablecoins to settle global transactions in real time. These stablecoins move across the network 24/7, without dependence on traditional banking hours or international systems. This makes Ethereum a logical choice for banks responding to the growing demand for faster and cheaper cross-border payments.
Tokenized funds boost operational efficiency
In addition to payments, the tokenization of financial products also takes place on Ethereum. Earlier this month, JPMorgan launched its first tokenized money market fund, MONY, on the public Ethereum blockchain. The fund offers returns on US government bonds and uses Ethereum as a distribution layer.
BlackRock, the largest asset manager in the world, is also active in this segment. Launched in 2024, the BUIDL fund is now the largest tokenized money market fund in the world, with more than $1 billion under management on the Ethereum blockchain.
These applications demonstrate that Ethereum smart contracts can take over much of the administrative burden of fund management. Automating processes such as dividend distribution and investor verification creates a system that is more efficient, transparent and less error-prone than traditional fund administration.
Why Ethereum is not mentioned by name
Although Ethereum technology is increasingly the backbone of modern financial products, institutions often avoid explicitly mentioning the network. Instead, they talk about “neutral blockchains,” “onchain infrastructure,” or “distributed ledgers.” This terminology offers them the opportunity to leverage open technology without the reputation of being involved in speculative crypto markets.
The choice of Ethereum is largely determined by the network effect of the EVM standard. As more parties use the same infrastructure, interoperability and scalability increases. The financial system is converging around Ethereum as a common layer for programmable value transfer.
Ethereum’s role in the global financial system is growing rapidly, but often out of sight of the general public. By using Ethereum as a technological infrastructure rather than an investment asset, Wall Street is positioning the network as an essential but invisible part of the financial landscape.
Source: https://newsbit.nl/wall-street-token-zo-wordt-ethereum-de-nieuwe-financiele-standaard/
