Citrini Research believes Wall Street’s growing interest in blockchain-based assets could create substantial opportunities across the crypto sector, with companies and protocols that earn transaction fees potentially outperforming Bitcoin and Ether.
The research firm argues that investors looking to benefit from tokenization may find more promising opportunities in related businesses and digital assets than in Bitcoin BTC $82,596.93 and Ether ETH $2,481.60 , according to its latest report.
In its 79-page study, Breaking the Wall, published Thursday, Citrini explained how bringing traditional assets such as stocks, bonds and loans onto blockchain networks could support new markets for trading, borrowing and payments.
Tokenization converts ownership or exposure to conventional assets into digital tokens that can move between platforms and potentially trade around the clock. For instance, an investor could use a tokenized share held in a digital wallet as collateral for a loan, bypassing the need to arrange the transaction through a traditional brokerage.
Citrini has gained recognition for its analysis of technology and financial markets, particularly artificial intelligence. Its Substack newsletter has more than 263,000 followers, and its AI-related research went viral earlier this year, fueling widespread concern and contributing to a brief market downturn.
According to the report, tokenization could expand opportunities for trading venues, lending providers, stablecoin issuers and businesses that maintain records of securities ownership. The firm believes companies and crypto projects collecting fees from these activities may capture much of the economic value created by the shift to blockchain-based finance.
“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.”
Public companies positioned to benefit
Citrini presented two investment portfolios designed to capture potential growth in tokenization: one featuring publicly traded companies and another focused on cryptocurrency tokens.
Its stock selections emphasize businesses that could generate revenue as financial markets increasingly adopt blockchain infrastructure.
Securitize (SECZ) was among the companies highlighted for its role in linking digital tokens to the underlying securities they represent.
The report also pointed to Coinbase COIN $172.48 and Robinhood HOOD $107.17 , whose trading operations and blockchain infrastructure could benefit from greater tokenized-asset activity. Circle CRCL $80.83 could gain from increased use of its USDC stablecoin to settle transactions.
Other picks 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 exchange focused on institutional digital-asset trading. Bullish, CoinDesk’s parent company, is acquiring share registrar Equiniti.
Crypto projects with potential tokenization exposure
Citrini expressed even greater enthusiasm for its crypto-token portfolio, arguing that it offers a wider range of ways to benefit from the migration of financial assets onto blockchains.
“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.
The portfolio included Aerodrome (AERO), a decentralized trading platform that could collect fees from tokenized stock transactions, and Maple SYRUP $0.2307 , which provides blockchain-based lending products for institutional clients.
Citrini also selected Pendle (PENDLE), which enables trading in future yield from interest-bearing assets, and Ondo Finance ONDO $0.4811 , a provider of tokenized U.S. Treasury and stock products that has expanded into perpetual futures.
Aave AAVE $167.98 was included for its decentralized lending services, while Uniswap (UNI) offers infrastructure for decentralized token trading. Ethena (ENA), a stablecoin issuer, also featured in the portfolio following its expansion into digital financial products, including savings, cards and payments.
Additional selections were ether.fi (ETHFI), which provides crypto-based financial services; Chainlink LINK $12.78 , which supplies data infrastructure for blockchain applications; and LayerZero ZRO $2.0572 , which connects separate blockchain networks. Citrini expects these projects could benefit as tokenized assets spread across financial applications and blockchain ecosystems.
The firm also highlighted Derive DRV $0.4935 , a decentralized options platform that could see increased activity if tokenized stocks and other assets lead to greater demand for onchain derivatives.
Emerging perpetual futures exchanges Lighter (LIT) and Variational (VAR) were also mentioned. Perpetual futures, or perps, let traders speculate on asset prices without owning the underlying assets and have no fixed expiration date.
Hyperliquid (HYPE) has become a leading platform for blockchain-based perpetual futures, according to Citrini. The firm believes Lighter and Variational could attract additional traders as the market grows. It also included exposure to Hyperliquid in its stock portfolio through the Bitwise Hyperliquid ETF (BHYP).
Risks could limit returns
Despite its positive outlook, Citrini warned that higher trading volumes and greater blockchain usage do not necessarily translate into stronger token prices. Investors should examine how each project earns revenue, who receives the fees and whether token holders benefit directly from those earnings.
The report also identified fragmented liquidity across different blockchains, security concerns and regulatory uncertainty as potential barriers to adoption.
Synthetic tokenized stocks present another challenge because they can provide price exposure without giving investors the direct ownership or voting rights associated with traditional shares. These limitations could complicate the wider adoption of tokenized financial products.
