Big Companies Are Quietly Betting on Ethereum

Big Companies Are Quietly Betting on Ethereum

Over the past months, I’ve spoken with many organizations eager to build on blockchain—but they all run into the same challenge:

📌 How do you keep up with blockchain’s rapid technical progress?
📌 Which blockchain is the right one to build on?
📌 How do you separate signal from noise?

Ethereum is emerging as the clear enterprise choice, but adoption isn’t happening overnight. This week, I break down the latest Galaxy Digital report on why enterprises are betting on Ethereum and what challenges remain.

Key Takeaways from the Galaxy Report

1. Financial Institutions Are Leading Adoption

Banks, asset managers, and payment processors are issuing Real-World Assets (RWAs) on Ethereum:

• 13 of 20 financial institutions surveyed are involved in RWA tokenization.

• Trading platforms and accounting firms are integrating Ethereum into their infrastructure.

2. Real-World Asset (RWA) Tokenization Is Dominated by Ethereum

• Ethereum hosts nearly 10x the RWA value of the next-largest blockchain (Stellar).

• BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is now the third-largest tokenized fund, underscoring Ethereum’s role in bridging traditional finance and DeFi.

Why Are Enterprises Choosing Ethereum Over Private Blockchains?

For years, enterprises experimented with private blockchains, hoping to reap the benefits of distributed ledger technology without decentralization.

Most of these efforts fizzled out, but companies do not like to talk about it out loud (they failed, right?)

1. No Admin Keys, No Control Risks

   • Private blockchains are often controlled by a single company or consortium. This introduces trust issues—who governs the network, and can they change the rules at any time?

   • On Ethereum, enterprises benefit from credibly neutral infrastructure where no single entity can alter the rules, ensuring long-term security and stability.

2. Ethereum’s Network Effects & Liquidity

   • Ethereum has the largest developer community, most active smart contract ecosystem, and the deepest on-chain liquidity. Enterprises want to tap into an thriving ecosystem rather than build isolated solutions.

3. Regulatory Clarity and Institutional Adoption

   • Regulators and institutions increasingly recognize Ethereum as a trusted settlement layer for tokenized assets, stablecoins, and financial infrastructure.

   • BlackRock, JPMorgan, and Deutsche Bank aren’t experimenting with niche chains—they’re building on Ethereum.

4. Layer 2 Scaling: Cost Efficiency Meets Security

   • Enterprises need cheap transactions without compromising security. Ethereum’s Layer 2 solutions provide scalability while inheriting the security of the main chain.

Enterprises Are Interested, But Are They Fully Committed?

The recent wave of enterprise adoption signals growing confidence in Ethereum, but are these companies truly committed—or just experimenting?

For years, NFTs were an easy entry point—low risk, minimal regulatory hurdles, and great for brand engagement. That phase is over. Now, enterprises are eyeing tokenizing money markets and real-world assets.

When institutions like BlackRock, JPMorgan, and Deutsche Bank actively explore Ethereum for financial infrastructure, it’s clear that blockchain adoption is no longer just a marketing stunt—it’s a strategic shift.

But There Are Still Barriers

1. Regulatory Uncertainty – While Ethereum is favored for tokenization, evolving regulations create uncertainty.

2. Scalability Concerns – Layer 2s help, but enterprises are still figuring out which solutions to adopt.

3. Integration Challenges – Legacy financial systems aren’t built to interact with blockchain, creating technical hurdles.

Another key issue? Internal awareness and education.Resources

Bridging the knowledge gap