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According to Grayscale Investments, the global push to tokenize real-world assets is only beginning, and Chainlink could become one of the key technologies driving that expansion.
In an interview on the Thinking Crypto podcast, Grayscale Head of Research Zach Pandl said that just a small portion of global assets are currently on blockchain networks, but adoption could accelerate significantly over the next five to ten years as traditional finance moves on-chain.
Chainlink’s Role in Bridging Crypto and Traditional Finance
Grayscale recently launched a Chainlink ETF, converting its existing Chainlink investment vehicle into an exchange-traded fund. Pandl said the ETF structure makes it easier for investors to gain exposure to what he described as one of the most important projects in the crypto ecosystem.
According to Pandl, Chainlink acts as a bridge between blockchains and traditional finance by providing reliable data, compliance tools, and integrations needed for tokenized assets, stablecoins, and decentralized finance to function at scale.
“Chainlink is really the connective tissue between the crypto ecosystem and traditional finance,” he said. “It’s not a bet on one blockchain, but exposure to where the entire industry is going
ETFs Expand Beyond Bitcoin and Ethereum
Pandl also highlighted Grayscale’s expanding lineup of crypto ETFs, including products tied to XRP, Solana, Dogecoin, and Chainlink. He said regulatory clarity has accelerated the pace at which new crypto ETFs are coming to market, following the long approval process for Bitcoin and Ethereum ETFs.
XRP, originally built for payments, is now expanding into broader use cases, while Solana continues to attract activity due to its speed and low costs. Dogecoin, Pandl noted, represents a different segment of the market but reflects the growing diversity of investor interest.
Grayscale has also shown interest in privacy-focused assets such as Zcash, which Pandl said addresses a major gap in public blockchain systems.
“If public blockchains are going to transform finance, they must support privacy,” Pandl said. “Institutions will not operate on systems where payrolls, balances, and transactions are fully visible.”
Market Pullback Seen as Typical, Not a Cycle Top
Addressing recent market weakness, Pandl said Bitcoin’s roughly 30% decline from its recent highs may feel severe but is consistent with past bull markets.
He emphasized that Bitcoin frequently experiences multiple pullbacks of 10% to 30% during strong cycles and that Grayscale does not see signs of a major, long-term downturn.
“A 30% pullback is actually about an average drawdown for Bitcoin,” Pandl said. “We do not believe we are on the cusp of a larger multi-year decline.”
Pandl said two forces continue to support crypto markets: rising demand for alternative stores of value amid growing debt and inflation risks, and increased institutional access driven by clearer regulations.
He added that capital continues to flow into crypto through ETFs, platforms, and institutional products as regulatory barriers ease.
Tokenization Could Grow 1,000x
Pandl said tokenized assets currently total around $30–35 billion, which represents just a tiny fraction of global equity and bond markets worth roughly $300 trillion.
He believes tokenized assets could grow by as much as 1,000 times over the next five years as traditional financial instruments move on-chain.
Tokenization, he said, could allow markets to operate around the clock, speed up settlement times, and unlock new financial services such as on-chain lending and collateralization.
Grayscale sees platforms like Ethereum as likely hosts for tokenized assets, while infrastructure providers like Chainlink enable the data and connectivity required for adoption.
Volatility Likely to Remain, But Diversification Value Stays
Pandl said crypto’s correlation with equities has increased as the market has grown, but it still behaves more like a commodity than a stock index.
Bitcoin and other large digital assets may move with equities at times, he said, but often follow their own fundamentals, making them useful portfolio diversifiers.
While acknowledging the risks and volatility involved in crypto investing, Pandl said current prices may offer long-term investors a chance to build positions.
“If you’re optimistic about the long-term vision, a lower price is an opportunity,” he said. “From our perspective, this is a good time to begin accumulating the asset class.”
Grayscale remains optimistic about crypto’s long-term outlook, citing continued innovation, growing institutional interest, and steady progress toward regulatory clarity in the United States.
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FAQs
Tokenization allows traditional assets such as stocks, bonds, and real estate to exist on blockchain networks, which could significantly increase market efficiency. It may reduce settlement times, enable 24/7 trading, and allow new financial products like on-chain lending and collateralization. Over time, this could change how investors access and interact with conventional markets.
Institutional and retail investors stand to gain easier, regulated exposure to a broader range of digital assets through ETFs. These products reduce the complexity and custody risks of holding cryptocurrencies directly, while allowing investors to diversify across assets such as Chainlink, Solana, and XRP.
Crypto assets are still influenced by speculative trading, regulatory developments, and technological shifts, so significant price swings are expected even as adoption increases. However, their fundamental drivers—such as tokenization growth and demand for alternative stores of value—can provide long-term stability and diversification benefits for investors.
