Grayscale’s research head says tokenization will happen in waves and explains how to play it

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Grayscale’s research head says tokenization will happen in waves and explains how to play it Investors looking to bet on tokenization should think in phases, with institution-friendly networks like Canton likely winning first and Avalanche, Ethereum capturing more upside later, Grayscale's Zach Pandl said. By Krisztian Sandor | Edited by Omkar Godbole Apr 1, 2026, 11:47 a.m. Make preferred on Zach Pandl, head of research at Grayscale (Grayscale) What to know : Grayscale's research head Zach Pandl said tokenization should be viewed as a long-term roadmap rather than a single trade, with different winners emerging at different stages. Pandl expects early gains to come from institution-centric, permissioned systems like the Canton Network, offering a "slightly upgraded" version of today's finances. The next stage could be dominated by hybrid models such as Avalanche, and ultimately more ambitious, global and decentralized platforms like Ethereum. Tokenization has become one of crypto's favorite buzzwords, but Grayscale head of research Zach Pandl said investors should think about it less as a single trade and more as a long roadmap with different winners at different stages. Speaking at EthCC conference in Cannes, France, Pandl said that the trend is still in its infancy. Tokenized assets — the process of using blockchain rails to settle, transfer and record ownership of all kinds of financial assets such as bonds, funds and equities — is rapidly growing. However, currently at $27 billion , it still represents roughly 0.01%, a tiny fraction, of global capital markets. That's projected to swell to near $19 trillion by 2033, according to BCG and Ripple. Big banks and asset managers already understand the opportunity. "The two things that institutions are aware of are stablecoins and tokenization," Pandl said. But they are still trying to figure out where to allocate capital to actually benefit from these innovations. From here, Pandl expects tokenization to unfold in phases, with different types of networks and models capturing value at each stage. The first winners, he said, may be projects that look more like traditional finance, not less. "In the early stages of the tokenization process, you will see things that have success that look more similar to how the financial system works today," he said. That means institution-centric, permissioned systems that solve practical issues like privacy, identity and control. Canton, Avalanche and Ethereum as potential winners of tokenization phases (Zach Pandl presentation/Grayscale) Pandl pointed to the Canton Network (CC), backed by Wall Street giants like DRW, TradeWeb, Goldman Sachs and Nasdaq, as a potential winner in this early phase of tokenization. He said it is "a perfectly reasonable investment" for investors who want nearer-term traction, even if Canton's approach represents only "a slightly different, slightly upgraded version" of today’s financial system. The second phase The second phase of tokenization could be a hybrid model where we have both institution-owned blockchains and a global shared state, with those networks interconnected and speaking to each other. One example for that is Avalanche (AVAX), with hundreds of sovereign, corporate-owned chains (called subnets) live but connected to a primary, layer-1 network. Ethereum's ether (ETH), in his view, is the bigger but slower bet. Pandl said he believes the market will eventually move toward "global decentralized finance," but added that "the tech is not fully ready" and that institutions are not ready either. That makes ETH the more ambitious investment for those willing to wait for the longer-term shift away from financial intermediaries. There are also picks-and-shovels plays. Pandl highlighted chain-agnostic service providers such as Chainlink as another way to get exposure, saying they may be "even more compelling" than some blockchains. Read more: How tokenized assets could become a $400 billion market in 2026 Tokenization Real World Assets Ethereum News More For You Encryption Supremacy: Zcash and Privacy in the Age of Scale By CoinDesk Research 20 hours ago Commissioned by GenZcash Most crypto privacy models weaken as blockchain data grows. Encryption-based models like Zcash strengthen. CoinDesk Research maps the five privacy approaches and examines the widening gap. Why it matters : As blockchain adoption scales, the metadata available to machine learning models scales with it. Obfuscation-based privacy approaches are structurally degrading as a result. This report provides a comprehensive comparison of all five major crypto privacy architectures and a framework for evaluating which models remain durable as AI capabilities improve. View Full Report More For You Brazil's B3 exchange to offer bitcoin-linked 'event contracts' for the ultra-rich By Francisco Rodrigues | Edited by Omkar Godbole 26 minutes ago The contracts are regulated by Brazil's securities regulator and designed for professional investors with at least 10 million reais ($1.9 million) in assets. What to know : Brazil's main stock exchange B3 will launch six new event contracts on April 27 that allow investors to bet on future outcomes, including bitcoin prices and currency movements. The contracts are regulated by Brazil's securities regulator and designed for professional investors with at least 10 million reais ($1.9 million) in... Read full story Latest Crypto News Brazil's B3 exchange to offer bitcoin-linked 'event contracts' for the ultra-rich 26 minutes ago Jack Dorsey says AI should replace the middle manager after Block cuts 4,000 jobs 31 minutes ago Smart money is hedging bitcoin more aggressively than ether :Crypto Daybook Americas 35 minutes ago Crypto rebounds as oil dips on Trump comments, but derivatives signal weak conviction 1 hour ago Bitcoin ETFs post first monthly inflows since October as price stabilizes 1 hour ago Uniswap Foundation held $85.8M at year-end, committed $26M in grants during 2025 1 hour ago Top Stories Bitcoin’s old price peaks aren’t sacred – and the parabolic era may be over 2 hours ago Some quantum-resistant tokens jump 50% as Google flags risks to Bitcoin security 5 hours ago Hong Kong hasn’t issued a single HKD stablecoin license after March target 8 hours ago Charles Hoskinson not a fan of CLARITY Act, warns of 'weaponization' by future lawmakers 19 hours ago Strategy's STRC keeps dividend payout steady at 11.5% after seven straight increases 3 hours ago These catalysts could bump bitcoin as Trump hands three-week target to end Iran war 6 hours ago