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VanEck CEO Calls Ethereum The Wall Street Token

Ethereum aims to become the standard for financial institutions.

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Jan van Eck, CEO of investment company VanEck, stated that Ethereum will become the main blockchain for the traditional financial sector amid the growing adoption of stablecoins.

In an interview with Fox Business, van Eck noted that banks and financial companies will not be able to ignore stablecoins. To accept such payments, they will need to integrate blockchain.

According to van Eck, the logical choice will be Ethereum or Ethereum-based solutions, including ECM (Ethereum-Compatible Methodology). He called the asset “the Wall Street token” and added that in times of technological transition, the blockchain on which infrastructure is built is the one that wins.

VanEck Interested In Ethereum’s Success

Van Eck’s interest is explained by the fact that in July 2024, the company received SEC approval to launch a spot ETF based on Ethereum. The fund tracks the price of ETH but does not hold the asset directly. At the time of his statement, the fund managed more than $284 mln.

Growing Business Interest In Stablecoins

According to the Fireblocks platform, 90% of institutional market participants are already considering options for using stablecoins in their operations.

Van Eck stated that in the next 12 months, large companies will adopt technologies to support digital dollars since they do not want to lose clients who use such assets.

“If one bank refuses to accept stablecoins, clients will simply find another,” he emphasized.

A similar position was voiced in April by Eric Trump, vice president of Trump Organization. He stated that banks will either move to cryptocurrencies or disappear within 10 years.

New Law And Record Stablecoin Supply

In July, Donald Trump signed the GENIUS Act, passed by the U.S. House of Representatives. This is the first federal regulation fully dedicated to payment stablecoins. The current market capitalization of stablecoins exceeds $290 bln.

Ethereum Growth Amid Institutional Demand

Ethereum continues to strengthen its position. Over the weekend, ETH reached a new record of $4946, and at the time of van Eck’s statement, it was trading at $4566, down 1% in 24 hours. Corporations are actively buying the asset: in just a month, corporate treasuries purchased ETH worth more than $6 bln. Among the largest buyers are BitMine and SharpLink.

Matt Hougan, Chief Investment Officer at Bitwise, noted in July that corporate purchases of Ethereum eliminated the asset’s main image barrier: now investors perceive it as a clear instrument for working with capital.

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This post is for informational purposes only and does not constitute advertising or investment advice. Please conduct your own research before making any financial decisions.

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