NFTs and RWAs represent the primary applications non-crypto-native companies and institutions are developing within the Ethereum ecosystem.
Authored by Christine Kim, Vice President of Galaxy Research, this report explores how over 50 traditional corporations—from luxury brands like Louis Vuitton to financial giants like Deutsche Bank—are leveraging Ethereum and its Layer 2 (L2) networks. Unlike generic crypto infrastructure (e.g., exchanges, custody), these entities focus on niche applications such as NFTs, real-world assets (RWAs), and scalable blockchain solutions.
Market Overview: Traditional Companies on Ethereum
- Sectors Involved: Fashion, automotive, finance, gaming, and entertainment.
Key Applications:
- NFTs (23 companies actively issuing).
- RWAs (13 financial institutions tokenizing assets).
- Stablecoins (e.g., PayPal’s PYUSD, Robinhood’s USDG).
- Preferred Networks: Ethereum Mainnet and L2s (Polygon, Arbitrum, Base).
👉 Explore Ethereum’s growth in traditional finance
Real-World Assets (RWAs) on Ethereum
Ethereum dominates RWA tokenization, hosting assets like:
- Franklin OnChain U.S. Government Money Fund.
- BlackRock’s BUIDL (3rd largest tokenized fund, spanning 6 networks).
Key Stats:
- Ethereum’s RWA value is 10x higher than Stellar’s.
- 160+ RWAs issued, held across 60,000 wallets (excluding stablecoins).
Trend: Institutional adoption is accelerating, driven by regulatory clarity and partnerships (e.g., BlackRock ↔ Securitize).
Stablecoins: Bridging Traditional and Crypto Finance
- Ethereum’s Share: >50% of the stablecoin market.
- 2025 Projection: Supply to exceed $400B (Galaxy Research).
- Catalysts: Stripe’s acquisition of Bridge, SEC’s focus on tokenization.
Example: PayPal’s PYUSD launched on Ethereum, later expanding to Solana.
Scalable Infrastructure: The Role of Layer 2s
Why L2s? Ethereum’s scalability limitations (high fees, slow transactions) are addressed via L2s, which maintain security while enabling mass adoption.
Notable Projects:
- Deutsche Bank’s DAMA 2 (ZKsync-based, focused on compliant finance).
- Sony’s Soneium (OP Stack for gaming/entertainment, despite controversies).
👉 Learn how L2s drive enterprise adoption
Gaming and NFTs on Ethereum L2s
2025’s Active Players:
- Atari: Classic games on Base (NFT rewards).
- Lamborghini: FastForWorld (Animoca collab, Base-minted assets).
- Lotte Group: Caliverse (Arbitrum-based metaverse).
Why L2s? Faster transactions (e.g., Arbitrum’s 250ms block time) suit high-frequency gaming interactions.
Conclusion
Ethereum’s two flagship use cases for traditional entities are:
- NFTs: Now concentrated in gaming (via L2s).
- RWAs/Stablecoins: Dominated by financial institutions.
Future Outlook:
- L2s enable customizable, compliant infrastructure.
- Partnerships (e.g., Stripe, BlackRock) will propel adoption in 2025.
FAQ
Q1: Why are traditional companies choosing Ethereum over other blockchains?
A1: Ethereum offers decentralization, security, and the broadest developer ecosystem, making it ideal for RWAs and interoperable applications.
Q2: How do Layer 2 networks benefit enterprises?
A2: L2s provide scalability (low fees, fast transactions) while inheriting Ethereum’s security—critical for mass-market applications.
Q3: What’s driving stablecoin growth?
A3: Demand for dollar-pegged liquidity, regulatory progress, and institutional entry (e.g., PayPal, Robinhood).
Q4: Are NFTs still relevant in 2025?
A4: Yes, but primarily in utility-driven contexts (e.g., gaming assets) rather than speculative collectibles.
Q5: Which industries are leading RWA adoption?
A5: Finance (banks, asset managers) and luxury goods (tokenized commodities).
Disclaimer: This content is for informational purposes only and does not constitute financial advice.