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Will Tokenized Equities Boost Ethereum? Dragonfly’s Rob Hadick Isn’t Convinced
Tokenized equities are poised to transform traditional finance (TradFi), but their impact on the broader crypto industry may not live up to expectations, according to Rob Hadick, general partner at Dragonfly. Speaking at the TOKEN 2049 conference in Singapore, Hadick highlighted the growing appetite from financial institutions for blockchain-based equities, but expressed skepticism about the benefits for major crypto ecosystems such as Ethereum.
TradFi’s Push for 24/7 Markets
Hadick noted that tokenized equities will have a “big effect on TradFi,” especially as institutions seek round-the-clock trading and improved economic efficiency. The U.S. Securities and Exchange Commission (SEC) is reportedly working on a plan to allow blockchain versions of stocks to trade on crypto exchanges, after growing pressure from institutions eager to modernize trading infrastructure.
However, Hadick warned that institutions are unlikely to rely on public blockchains. Instead, companies such as Robinhood and Stripe are building their own networks to maintain privacy, control, and validator oversight, distancing themselves from sharing block space with assets like memecoins.
Value Leakage Concerns for Ethereum
If tokenized stocks operate on layer-2 networks, Hadick said there could be “leakage,” meaning value might not flow back to Ethereum or the broader crypto ecosystem as much as anticipated. Should financial institutions choose to develop their own layer-1 blockchains, the connection to existing crypto markets could become even weaker.
While previous attempts at private blockchains have largely failed, Hadick suggested that hybrid models—where institutions maintain control but retain the option to interact with public networks—are gaining traction.
A Contrasting Outlook
Hadick’s cautious stance diverges from bullish views held by prominent figures such as Fundstrat’s Tom Lee, VanEck CEO Jan van Eck, and Consensys founder Joseph Lubin, who believe that Wall Street’s move onchain could deliver massive benefits for Ethereum.
For now, the future of tokenized equities remains uncertain. With the SEC in active discussions with major players like VanEck, the New York Stock Exchange (NYSE), and Nasdaq, the sector is still in its infancy—representing just $735 million in value, or 2.3% of the total tokenized real-world asset market, according to RWA.xyz.
