Key Takeaways:Wall Street firms are increasingly accumulating ETH as stablecoin growth and real-world asset (RWA) tokenization expand on Ethereum.Ethereum now hosts over 54% of stablecoins and is positioning itself as a “reserve asset” for the onchain dollar economy.SharpLink Gaming ups equity sale to $6B to buy ETH for its treasury, holding over 321,000 ETH after a $425M Consensys-led deal.Fidelity and Electric Capital reports frame ETH as digital oil, a store of value, and sovereign economic infrastructure.Wall Street Bets Big on Ethereum as Stablecoin and RWA Use Cases AccelerateEthereum is rapidly becoming the top institutional bet in crypto’s next phase of growth. As the backbone of the onchain dollar and tokenized real-world asset ecosystems, Ethereum’s evolving role is attracting major Wall Street firms, hedge funds, and asset managers.Over 54% of all stablecoins now operate on Ethereum, positioning it as the reserve layer for a rising global digital dollar economy. Simultaneously, the network is powering the next wave of real-world asset (RWA) tokenization—everything from tokenized treasuries to private loans.ETH Price Up 23% This Week, But Still Below ATHEther (ETH) surged 23% over the past week, significantly outperforming Bitcoin’s 13% gain and the broader market’s 10% rise. Despite reaching $3,644, ETH remains far from its 2021 all-time high of $4,855, offering upside potential as institutional narratives take hold.ETH Viewed as a Reserve Asset Backing the Onchain DollarAccording to a new Electric Capital report, Ethereum leads stablecoin issuance with over $200 billion in circulation, and $4 billion of that in yield-bearing stablecoins. The report outlines three must-haves for digital dollar infrastructure: accessibility, security, and neutrality—Ethereum is the only blockchain consistently delivering all three.As stablecoins mature into financial products with yield, Ethereum’s dominance makes ETH an emerging reserve asset akin to Treasurys or gold. ETH already backs over $19 billion in loans and provides non-custodial, stakable collateral across DeFi protocols. Analysts believe ETH could eventually absorb a share of the $500 trillion global store-of-value market.Fidelity: Ethereum Is a Sovereign Digital EconomyA recent Fidelity report frames Ethereum not as a Web2 platform, but as a sovereign digital economy with ETH functioning as both store of value and medium of exchange.Fidelity applies a GDP-like framework to Ethereum’s economy:“Consumption” = protocol fees“Government” = Ethereum Foundation spending“Investment” = ETH staking and DEX liquidity“Net exports” = value flows via DePIN, stablecoins, RWAsEthereum now hosts over 2.5 million daily active wallets and records 19 million transactions daily, according to Artemis. This increasing usage supports the view that ETH demand scales with the ecosystem.ETH as Digital Oil: Low Fees and Real YieldA third thesis from leading Ethereum stakeholders describes ETH as “digital oil”—a yield-bearing commodity that fuels the onchain economy. With transaction fees reduced via layer-2 (L2) scaling, Ethereum has sacrificed short-term fee revenue (down from $82M to $3M daily) to support mass adoption and long-term ETH value accrual through staking and ETH burn.ETH now serves multiple functions:Fuel for computation and transactionsCollateral for DeFi and RWAsReserve asset for stablecoinsYield source through stakingThis multi-role architecture positions Ethereum as the backbone of the decentralized financial stack.SharpLink Gaming Raises $6B to Expand ETH TreasuryIn a major vote of confidence, SharpLink Gaming (NASDAQ: SBET), the largest corporate ETH holder, has increased its stock sale target from $1 billion to $6 billion to fund ETH accumulation.The company has:Already sold $721 million in common stockAdded a new $5 billion equity issuanceGrown its ETH holdings to 321,000 ETH, worth $1.1 billionA recent $425 million private placement led by Consensys helped fund this accumulation. Ethereum co-founder Joseph Lubin also joined SharpLink’s board as chairman following the deal.SharpLink’s ETH strategy mirrors early Bitcoin treasury plays by MicroStrategy—only this time, the focus is Ethereum as programmable, productive capital.Institutional demand is no longer limited to Bitcoin. With Wall Street embracing Ethereum’s role in powering stablecoins, tokenized RWAs, and sovereign blockchain economies, ETH is now viewed as digital oil, digital gold, and a digital reserve currency—all in one asset.If ETF flows, TradFi alignment, and L2 scalability continue to accelerate, analysts say Ethereum could follow Bitcoin into a new phase of institutional-led price discovery.
Catherine
Kikyo