Raoul Pal argues the “entire banking system” could migrate to Ethereum.
Ethereum’s growing dominance in tokenization and interest from Wall Street is sparking debate.
Analysts say ETH’s bullish price setup could drive further upside.
Famed crypto investor Raoul Pal has reignited debate over Ethereum’s long-term role in global finance, saying the “entire banking system” could ultimately migrate onto the blockchain.
The comments come as institutional interest in tokenization gathers pace amid a recovery in Ethereum prices, as the second-largest crypto climbed over 6% in recent weeks.
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Speaking on his podcast, Pal argued that the logic of tokenization would eventually force traditional finance onto blockchain rails, particularly Ethereum.
He said he had anticipated as early as 2014 that equities, credit markets and derivatives would need to be digitized to cope with rising global debt and increasingly complex ownership structures.
“I was like, everything had to be tokenized… all equities, all credit markets, all derivatives,” Pal said, adding that Ethereum later emerged as the most viable platform to support that transition.
Pal, a former hedge fund manager, pointed to the network’s track record and network effects, comparing its potential dominance in finance to Microsoft’s entrenched position in banking infrastructure.
“It became obvious to me, and it was, I found it hilarious. A year and a half, two years ago, people were like, ‘ETH is dead.’”
“I’m like, no, no, the entire banking system will go to ETH.”
“That doesn’t mean a monochain world, but… I know how banks work, right?”
His comments come as other industry leaders argue that Ethereum could eventually replace legacy financial plumbing through faster and more transparent transactions.
Ethereum’s Resilience Appeals to Institutions?
Etherealize co-founder Danny Ryan said traditional financial institutions align with many of Ethereum’s core strengths.
“I’ve found a customer of decentralization. They just don’t know it,” Ryan said, citing banks’ focus on uptime, resilience and long-term reliability.
He added that Ethereum’s global distribution, multi-client architecture and operational track record position it well for institutional adoption.
“They care about the thing that no one can turn off… the thing that’s been around for the longest,” Ryan said, comparing the dynamic to Pal’s industry adage that “no one gets fired for picking Microsoft.”
“You just have to translate the language to them,” he said.
What Is Etherealize?
Ethereum’s push into institutional finance has taken shape through “Etherealize,” a new startup aimed at bridging the gap between blockchain technology and Wall Street.
Led by former investment banker Vivek Raman and Danny Ryan, the project is designed to attract financial institutions by offering tools for tokenization and decentralized applications tailored to enterprise use.
We’ve assembled a team with the best from Wall St and the Ethereum ecosystem
And we’ll complement the work of the EF and the broader community
Ethereum’s adoption moment is here – let’s bring TradFi into the blockchain era
The initiative comes as Ethereum’s ecosystem has faced scrutiny over development pace, with founder Vitalik Buterin recently outlining ambitious scaling goals and a renewed strategic focus.
Tokenization Momentum Building
Ethereum is increasingly dominating the market for tokenized assets, accounting for roughly 60% of activity in the sector, according to industry data.
The network’s appeal lies in its ability to enable programmable ownership, near-instant settlement and round-the-clock trading.
Asset managers including BlackRock and Franklin Templeton have launched tokenized funds on blockchain infrastructure, while firms such as JPMorgan are exploring tokenization for internal settlement processes.
Ethereum hosts 61.4% of all tokenized assets.
$206.2 billion worth of tokenized assets settle on Ethereum.
The market cap of tokenized assets on Ethereum is up over 40% YoY.
The broader tokenized asset market has grown into a multi-billion-dollar segment, spanning products such as U.S. Treasuries, private credit and real estate.
Ethereum’s large developer base, security track record and expanding layer-two scaling solutions have helped it maintain a leading position, even as rival blockchains attempt to capture market share.
Ethereum Price Outlook
Ethereum’s recent price action also reflects growing optimism, with technical indicators suggesting further upside if momentum holds, according to analysts.
Abiodun Oladokun, an analyst at CCN, said Ethereum’s nearly 10% rally over the past two weeks has pushed it above the Ichimoku Cloud on the daily chart—a key bullish signal.
“At press time, the altcoin trades above the Leading Spans A and B… confirming that buyers are firmly in control of near-term momentum,” Oladokun wrote, noting that the cloud now acts as dynamic support around the $2,100–$2,200 range.
He added that Ethereum is also trading above its Parabolic SAR indicator, reinforcing expectations of a continued uptrend if buying pressure persists.
Oladokun said a sustained move higher could see ETH test resistance at $2,480, with a breakout potentially opening the path toward $2,500 and then $2,710.
However, he cautioned that a loss of momentum could trigger a pullback toward $2,162, with a deeper decline risking a return to the $2,000 level.
Will Wall Street Push Boost Ethereum Price?
Market participants say the technical setup is increasingly being supported by fundamental narratives around institutional adoption and tokenization.
If initiatives such as Etherealize succeed in onboarding Wall Street firms, analysts expect that demand for ETH—used to pay for transactions and secure the network.
That dynamic could strengthen Ethereum’s role as a settlement layer for tokenized assets, potentially providing longer-term support for prices beyond short-term technical cycles.
Still, traders caution that broader macroeconomic conditions and competition from rival blockchains remain key risks, even as the “Wall Street on-chain” thesis gains traction.
AI Next Ethereum Price Catalyst?
AI could become the long-anticipated breakthrough use case for crypto, with some analysts pointing to Ethereum as a primary beneficiary of the convergence between the two technologies.
Venture capitalist Marc Andreessen said the combination of AI and blockchain represents a “grand unification,” arguing that autonomous software agents will require native digital payment systems to function effectively.
“I think AI is the killer crypto app,” Andreessen said on the Latent Space podcast, adding that early adopters are already experimenting with giving AI agents financial autonomy.
He cited examples of users assigning bank accounts and payment capabilities to AI systems, a trend he said is still niche but growing rapidly.
“The number of people doing this is small today… but that’s how these things start,” Andreessen said.
Ethereum Positioned at Center of AI?
Market observers say Ethereum’s programmable infrastructure could make it a natural foundation for AI-driven economic activity.
Unlike Bitcoin, Ethereum enables smart contracts—self-executing code that underpins decentralized finance and tokenized assets—features that could allow autonomous agents to transact, verify identity and interact without intermediaries.
BitMine chairman Tom Lee echoes this view, identifying AI adoption as one of the main long-term drivers of Ethereum’s value, alongside Wall Street tokenization and digital identity systems.
Lee said 2026 could prove a “defining year” for the network if AI agents increasingly rely on blockchain rails for payments and verification.
He added that Ethereum’s long-term upside remains significant despite recent price volatility, pointing to strong historical returns and its expanding role in financial infrastructure.
“If Bitcoin reaches $250,000, Ethereum could trade between $12,000 and $22,000 based on historical ratios,” Lee said, outlining a base-case scenario.
In a more bullish outcome—where Ethereum becomes widely adopted as a core payments layer for both institutions and AI systems—he said prices could climb substantially higher.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
