Ethereum tokenization ecosystem explodes: PayPal and BlackRock lead the push into a new era of $18.6 billion on-chain finance

As of November 2025, Ethereum’s on-chain financial ecosystem has reached a milestone. PayPal’s stablecoin PYUSD’s quarterly transfer volume surged to $18.6 billion, a 260% year-over-year increase, while tokenized fund assets driven by BlackRock and Fidelity skyrocketed by 2000%. This trend indicates that traditional financial capital is systematically migrating to the Ethereum network. Although ETH price remains constrained below the $3,500 resistance level, on-chain data and institutional deployments suggest that Ethereum is accelerating its evolution into the core infrastructure for “Real World Assets” (RWA) tokenization.

PayPal Drives Adoption of Stablecoin Payments, PYUSD Trading Volume Hits Record High

Ethereum is becoming the main platform for bringing real-world financial assets on-chain, with PayPal’s PYUSD leading this wave.

Data from Q3 2025 shows that PYUSD’s quarterly transfer volume on Ethereum reached $18.6 billion, setting a new record since its launch, with a 260% increase year-over-year. The trend curve since early 2024 indicates that PYUSD’s on-chain activity continues to rise steadily, forming a consistent growth pattern.

The key driver behind this growth is PayPal’s further integration of on-chain payment scenarios. An increasing number of users are directly using PYUSD for transactions and settlements within Web3 applications, making it one of the most active stablecoins in the Ethereum ecosystem after USDC.

Market analysts note that this marks the formal deep integration of traditional payment giants with blockchain finance, laying a tangible foundation for mainstream crypto payments.

Explosive Growth of Tokenized Funds, Traditional Financial Giants Enter En Masse

Beyond stablecoin transactions, the growth of tokenized funds on Ethereum is equally remarkable.

Since January 2024, the total on-chain tokenized fund assets have increased by nearly 2000%, becoming one of the strongest growth engines within the Ethereum ecosystem. According to data from DeFiLlama, this wave is driven by traditional financial giants such as BlackRock and Fidelity.

In the first half of 2025, BlackRock’s tokenized money market funds surpassed $1 billion in assets, followed by Fidelity launching digital bonds and fund shares, enabling institutional investors to participate directly via ERC-20 tokens. This on-chain tokenization of fund shares reduces settlement costs and enhances liquidity.

Industry insiders point out that this progress signifies that traditional asset management firms are viewing Ethereum as the foundational layer of global finance, rather than merely a public blockchain platform.

Ethereum Becomes the Center of “Real World Finance,” RWA Market Has Huge Potential

Tokenization refers to representing and circulating real-world financial assets—such as bonds, funds, real estate, and gold—as blockchain tokens.

According to Boston Consulting Group (BCG), the global RWA market is projected to exceed $16 trillion by 2030, with over half of the tokenization activities expected to occur on the Ethereum ecosystem.

Currently, Ethereum’s smart contract standards, liquidity depth, and institutional trust have become key factors in its competitive advantage in tokenization.

BlackRock CEO Larry Fink has publicly stated, “Tokenization is the future of finance; all assets will eventually be digitized, and blockchain is at the core of this transformation.”

Under this trend, Ethereum is taking on the role of the global asset digitalization “settlement layer,” serving as a bridge connecting TradFi (traditional finance) and DeFi (decentralized finance).

Technical Outlook: ETH Short-Term Momentum Weakens, $3,500 Remains a Key Resistance

Despite strong on-chain activity, ETH’s price hovered below $3,500 in early November, with short-term momentum showing signs of weakness.

According to CoinMetrics data, ETH is currently trading below the 9-day exponential moving average (EMA), with the Relative Strength Index (RSI) at only 37.7, indicating insufficient buying pressure. Meanwhile, the Chaikin Money Flow (CMF) stands at -0.10, suggesting slight market outflows.

Derivatives market data also reflect cautious sentiment. ETH’s open interest has decreased to approximately $17.6 billion, and funding rates remain neutral at 0.0098%.

This indicates reduced leverage trading activity and a generally wait-and-see attitude among investors. If ETH cannot effectively break above the $3,500 resistance zone, it may continue to consolidate in the short term.

Institutional Deployments Signal Long-Term Optimism, Investors Focus on Tokenization Narrative

Despite technical pressures, strategic positioning by institutional investors demonstrates longer-term confidence.

With mainstream institutions like PayPal, BlackRock, and Fidelity accelerating their on-chain initiatives, Ethereum’s role in the global financial system is being redefined.

On-chain data shows that the proportion of long-term ETH holders has reached a new high for the year, accounting for 69% of circulating supply. This indicates ongoing capital concentration in core assets and rising market expectations for tokenization and stablecoin ecosystems.

Research firm Delphi Digital predicts that 2025–2026 will be a critical period for the institutionalization of “On-chain Finance,” with further promotion of tokenization of bonds, funds, and equities. This trend is expected to directly boost Ethereum’s on-chain transaction volume and fee revenue, supporting ETH’s medium- to long-term value.

Future Outlook: Ethereum’s “Wall Street Moment” Is Approaching

As the tokenization wave becomes mainstream, Ethereum is transforming from a “bottom-layer technology of the crypto ecosystem” into an “execution engine for the global financial system.”

PayPal’s payment flows, BlackRock’s asset on-chain experiments, and Fidelity’s institutional fund tokenization are opening new doors for traditional finance on blockchain.

From a macro perspective, this process not only advances Web3 development but also signifies that financial asset digitization is entering a substantive phase.

In the coming months, if ETH can break above $3,500 and sustain upward momentum, market sentiment may reverse. Combining on-chain fundamentals, institutional involvement, and macro liquidity conditions, Ethereum could enter its true “Wall Street moment” in 2026.

Conclusion

Ethereum is undergoing a transformation from a “smart contract platform” to a “global financial operating system.”

With giants like PayPal, BlackRock, and Fidelity expanding their on-chain presence, tokenization is no longer a future concept but a current reality in the financial industry. While ETH’s price may remain constrained by technical resistance in the short term, structurally, Ethereum is building its core position in the next financial cycle.