Executives from WisdomTree, Galaxy Digital and Helix outlined how they see crypto markets and the tokenization of real-world assets evolving during a panel at Bank of America’s 34th Annual U.S. Financial Services Conference. The discussion, moderated by Craig Siegenthaler, Bank of America’s North American head of diversified financials, focused on the drivers behind a recent crypto downturn, the shifting U.S. regulatory landscape, and what the panelists described as a growing institutional push toward blockchain-based “plumbing” for financial markets.
Why crypto prices corrected despite a friendlier policy backdrop
Asked why crypto prices experienced a sharp correction in the second half of 2025 that continued into 2026 despite what the panel characterized as a more supportive White House stance, Galaxy Digital’s Steve Kurz pointed to macro and market-structure factors. He said crypto’s increasing institutional integration means it now “compete[s] at scale” alongside other assets, while investor attention shifted to other themes such as gold and “quantum stocks.”
Helix founder David Post said price cycles and shakeouts have been typical over the last decade as the industry matures. He argued that tokens represent a different capital formation process than equities, and suggested regulatory tailwinds could support a future where tokens linked to revenue-generating businesses become more competitive with equities.
Regulation: Clarity Act vs. SEC “Project Crypto”
WisdomTree founder and CEO Jonathan Steinberg said the current U.S. administration’s posture toward digital assets is “night and day” compared with the prior administration. On the proposed Clarity Act, he said WisdomTree is generally positive and views reducing ambiguity as beneficial for the industry.
Steinberg emphasized the SEC’s efforts to “innovate and work with businesses,” referencing WisdomTree’s tokenized money market fund. He said the SEC recognized WisdomTree’s exemptive application, which he described as enabling a money market fund to have “24/7 trading and settlement on chain” so that the security “will act like a native asset on chain.” He added that the change was expected to go effective “at the end of this month.”
Kurz said Galaxy, which became Nasdaq-listed last year after previously trading on the TSX, met with the SEC’s crypto task force in February and explored tokenizing Galaxy’s equity. He said the effort involved “on-chain ownership in a wallet” of shares “on a one-to-one basis,” and described the ability to work with the SEC as a major shift from six months earlier.
While discussing the Clarity Act, Kurz said his view is that getting legislation done is more important than holding out for perfection, and he urged that crypto “should never be a political issue.” Later, he added that Clarity would provide durability for institutions concerned about policy reversals, while SEC guidance could help firms move ahead even without legislation.
Tokenization trend: stablecoins first, then broader assets and new products
The panelists broadly agreed that tokenization is likely to expand, though Steinberg cautioned it will take time. He said WisdomTree already offers a wide portfolio of tokenized real-world assets, including Treasuries, equities, model portfolios, a money market fund, gold and stablecoins.
Kurz argued that “stablecoin growth is the breakout app” and that stablecoins will expand the on-chain economy over the next three to five years, creating demand for yielding options and diversified portfolios. Post added that stablecoins are “superior” for moving money compared with existing rails, and pointed to an “interesting” development where the NYSE has discussed allowing tokenized stock trading 24 hours a day, framing it as a response to better infrastructure.
Post said a later stage of tokenization could enable new financial products through “DeFi Legos,” where composable building blocks allow more complex offerings, driven by efficiency and transparency benefits of on-chain systems.
Tokenized ETFs and distribution: “not if, it’s when”
Asked about Larry Fink’s comments on tokenizing ETFs and the potential to reach younger investors active on platforms like Binance and Coinbase, Steinberg said tokenized ETFs are “definitely going to happen,” but noted regulatory and operational issues remain. He said WisdomTree has invested in blockchain infrastructure, including wallets, a trust entity and a broker-dealer, and suggested WisdomTree aims to be early in tokenizing ETFs.
Steinberg framed his company’s strategy as trying to do to ETFs what ETFs did to mutual funds, arguing that features such as “atomic settlement” could unlock significant capital for major banks. Kurz said on-chain distribution is a “small but growing” channel and that first movers could benefit because “on-chain distribution is effectively brand,” while clients may be able to move more fluidly than in traditional finance.
On when consumers might be able to buy a WisdomTree tokenized ETF inside the Coinbase app, Steinberg said Coinbase “don’t have the license today to own tokenized securities,” adding that this constraint was part of why WisdomTree built WisdomTree Prime and later created “Connect” to allow tokenized assets to travel to self-hosted wallets or institutions. Both Steinberg and Kurz suggested timelines could be faster than expected given the SEC’s more collaborative posture.
Who provides “crypto plumbing” and how banks may approach it
In a discussion of “picks and shovels” providers, Kurz described an emerging institutional stack that includes wallet infrastructure, tokenization, and “vault architecture,” and said the equivalent of fund administration and regulatory compliance tooling will be needed. He cited Coinbase, Securitize and Galaxy as participants. Steinberg said WisdomTree also plays an infrastructure role and referenced its prior Securrency business, which he said was sold to DTCC; he described DTCC as needing a blockchain initiative “to be a player.” Steinberg added WisdomTree is committed to interoperability across multiple blockchains and expects open and closed chains to work together.
Kurz said Galaxy recently consolidated tokenization, wallet infrastructure and staking into a single infrastructure business, which he expects to be important going forward. He noted Galaxy does not have a custodian and therefore is “not competitive to a Bank of New York Mellon (NYSE:BK) or to a State Street,” but focuses on blockchain engineering and on integrating regulatory and operational considerations across jurisdictions.
In an audience Q&A on institutional adoption, Kurz outlined three areas he is watching: financial services firms building on-chain capabilities; large asset owners exploring investable “rails” themes in public and private markets; and the U.S. wealth channel, which he said remains “wildly underpenetrated” despite ETF momentum.
About Bank of New York Mellon (NYSE:BK)
Bank of New York Mellon Corporation (BNY Mellon) is a global financial services company headquartered in New York City that provides a wide range of asset servicing, custody, and related financial infrastructure solutions to institutional clients. Its core businesses include custody and asset servicing, clearing and collateral management, treasury services, securities lending, corporate trust services, and depositary receipt administration. The company also offers investment management and advisory services through its asset management arm and provides technology-enabled solutions for trade processing, foreign exchange, and liquidity management.
BNY Mellon serves a broad client base that includes asset managers, pension funds, corporations, banks, broker-dealers and sovereign entities.
