The trend of asset on-chainization under stablecoin pricing mechanisms
Essentially, the implementation of the stablecoin bill is the starting point for comprehensive reform of the global financial chain.Author: Yang Ge Gary
In August 2025, global financial cities began to experience drastic market changes due to the wave of stablecoins. The push from Genius Act and Project Crypto, combined with the wealth creation examples from Mstr and Circle, broke the equilibrium of interests in traditional finance. Stablecoins, the linkage between coins and stocks, DAT, RWA, and on-chain asset management quickly became competitive hotspots in the new environment.
Essentially, the implementation of the stablecoin bill marks the starting point for a comprehensive reform of the global financial chain. The second curve of Crypto growth will develop along the application scenarios of stablecoins and the tokenization of various assets, combining the flexibility of Crypto finance with the historical experience of professional finance, forming differentiated development under different regulatory frameworks in various regions.
tl;dr
++1. Genius Act++ ++is essentially about decentralizing the issuance and settlement rights of currency to gain enhanced currency pricing power++
Stablecoins have triggered reforms in global financial chainization and asset chainization through changes in currency pricing forms.
The reform is rapidly dismantling the long-standing cartel alliances of traditional finance, bringing opportunities for interest restructuring amidst chaos.
++4. Trump++ ++successfully aligned his interests with the historical transformation, creating an incredible legitimacy++
++5.++ ++The two directions of coin-stock linkage are securitization++ ++(Securitization)++ ++and tokenization++ ++(Tokenization)++ ++and market characteristics++
++6.++ ++Stablecoins,++ ++DAT++ ++, stock tokenization,++ ++RWA++ ++and the industry characteristics and issues of on-chain asset management++
- The industry fragmentation and cultural split following the launch of the second curve of Crypto growth.
1. The essence of Genius Act is to decentralize the issuance and settlement rights of currency to gain enhanced currency pricing power
In a previous article, \
The future currency war is a competition of consensus in currency application, rather than a competition of rights in currency issuance and settlement. This is a qualitative reform that on-chain finance forces traditional finance to undergo, and it is evident that many countries and regions' policies, as well as some traditional financial experts, scholars, and entrepreneurs, have not recognized or found it difficult to change this concept. In other words, the M2 of future on-chain currency will gradually lose its original meaning, and the excessive issuance of a large amount of currency and tokenized assets will be a form of freedom, but this freedom does not represent equivalent value. The real value will exist in the consensus of currency and token assets, reflected in their liquidity, purchasing power, interoperability, community recognition, and other substantial quantifiable market value feedback.
At such a critical juncture of qualitative reform, the flexibility of paradigm shift concepts is crucial. Many definitions from traditional economics, market control methods, and asset management types will change. For example, as M2 loses its original meaning, it may be corrected through liquidity value factors as multipliers to obtain an effective circulation value of currency or assets, etc. Of course, various monetary and fiscal policies also need to undergo essential changes to adapt to the formation of new methods of on-chain economic governance.
2. Stablecoins have triggered reforms in global financial chainization and asset chainization through changes in currency pricing forms
After the Genius Act quietly ignited this new currency war, countries and regions around the world began to introduce their own stablecoin bills. Although many of these bills are still based on the inertia rules of traditional currency finance, requiring time for iterative adjustments, the overall financial market's chainization reform has already begun.
Although the assets settled in 1 USD and 1 USDC (or other stablecoins) do not seem to differ much in pricing, the essence of their monetary mechanisms leads to significant changes in the financial meaning of assets. This is mainly reflected in the programmability, combinability, market liquidity, ecological differentiated circulation, and flexibility of financial derivatives of various assets.
Recently, when friends from traditional finance ask about the characteristics of on-chain asset management done by CICADA Finance, I use the metaphor of a "financial motherboard." Various financial asset strategies are akin to different algorithms of "financial chips," forming flexible financial combinations through the selection and plugging of asset management, while stablecoins act as the "financial current" that connects the chips and the motherboard (Note 1).
3. The reform is rapidly dismantling the long-standing cartel alliances of traditional finance, bringing opportunities for interest restructuring amidst chaos
From the Genius Act to Project Crypto, stablecoins and on-chain financial reform fundamentally disrupt the inherent interest model of traditional finance. In other historical times, this would certainly trigger large-scale conflicts; however, this time, the transition appears to be smooth and acceptable. Is it because modern financial legal systems have made competition fairer, or because contemporary institutions are more civilized compared to history?
Certainly not. The reason is simple: the current global social development curve is too rapid, and enterprises that understand the trend and quickly transform can gain extra profits far exceeding the loss costs of clinging to original interests and resisting change. The previous phase's financial cartel alliances were swiftly broken and abandoned by enterprises that adapted quickly. From Wall Street to the entire New York, the overall choice was to enter a new game with a (+3, +3) model. This process of transformation will inevitably lead to a chaotic restructuring of the financial market within a certain period, while also creating numerous new asset and capital trading opportunities.
In the past month, I found that the degree of cartel alliance solidification varies significantly across different industries in the New York market. Although the financial industry has rapidly transformed under the drive of the Genius Act and Project Crypto, many traditional industries (such as real estate) remain very stubborn. Due to the strict control of entry conditions and information flow by monopoly alliances, many industries have a very primitive trading environment, and many RWA assets are still far from meeting the conditions for entering the current tokenization upgrade.
4. Trump successfully aligned his interests with the historical transformation, creating an incredible legitimacy
It is worth mentioning the role of the rapidly developing crypto president, Trump. Historically, pushing for reform usually involves high risks and significant resistance, especially when aligning one's own interests seems to add fuel to the fire. However, Trump's actions were indeed cleverly positioned at a special historical juncture, gaining incredible correctness and legitimacy, offsetting a large amount of negative opposition with the opportunities brought by the inevitable industry trend and interest restructuring, creating a very unique and irreplicable effect.
5. The two directions of coin-stock linkage are securitization and tokenization and market characteristics
Coin-stock linkage is an important topic in Q3 2025. Essentially, coin-stock linkage consists of two directions: one is to insert tokenized assets into listed companies, forming capital premiums in the form of stocks; the other is to tokenize stocks along the development of existing policies, reflecting a 7x24-hour tradable stock token market. The former is the process of securitization, usually managed by a country's or region's securities regulatory authority; the latter is the process of tokenization, typically managed by alternative asset management regulations of a country or region, some of which fall under banking regulation of currency or payments, while others belong to alternative securities regulation.
The securitization process of coin-stock linkage has evolved into a new term in Q3 2025, namely DAT (Digital Asset Treasury). This is a more flexible and universal process of inserting tokenized assets into listed companies to create capital premiums, following the ETF. The success of DAT in first-generation cases like Mstr has created a premium multiplier of 1.5x-2x (with peaks reaching nearly 4x), becoming the mainstream wealth creation method in major financial cities like New York and Hong Kong over the past six months. For the DAT market entering late Q3 and early Q4, the differences compared to the initial Mstr-BTC include: 1) the expansion of inserted assets, now including other non-BTC token assets like ETH and SOL; 2) in addition to the stock price premium multiplier caused by asset insertion, financial tools are beginning to be used to create leverage for higher capital or currency multipliers; 3) unlike Mstr, which has benchmark political and economic significance, the practices of small and medium-sized listed companies are mostly purely commercial, thus the risk of a Davis double whammy after obtaining a premium will be more pronounced.
The tokenization process of coin-stock linkage is still in its early stages in Q3 2025. The main issues include: 1) The to-C scenarios are premature; current demand is not genuine enough (usually only involving increased trading duration and non-compliance tax evasion needs), still in the early stages of Infra construction and to-B; 2) Not friendly enough for small and medium project participants; due to issue 1), the profit difficulty means that only mature participants like Robinhood and Ondo Finance can support the initial market; 3) The demand for Infra construction and to-B is relatively hidden and lengthy, and individual business models find it hard to be profitable independently, requiring the formation of an industrial chain to achieve overall resonance, needing a period of growth. Many institutions entering the market in the early stages have certain misconceptions about the development of stock tokenization; what is truly needed or in demand at this stage includes: 1) Achieving compliant paths under different regions; 2) Issuing large-scale stock tokenized assets at low costs through purchasing/borrowing/holding stocks; 3) Forming liquidity providers with substantial capital; 4) Creating leverage multipliers and derivatives markets through financial tools like lending; 5) Providing a large number of high liquidity assets with alpha-extractable value for the competitive token quant strategy market.
In comparison, as of Q3 2025, the securitization process of coin-stock linkage is somewhat closer to money than the tokenization process, but the opportunity time window is also shorter; conversely, the tokenization process of bond-stock linkage is a long-term development direction, an important step in the asset chainization process, and will open a larger market for strategy-based quantitative financial assets.
6. Stablecoins, DAT, stock tokenization, RWA, and the industry characteristics and issues of on-chain asset management
Stablecoins, DAT, stock tokenization, RWA, and on-chain asset management can be said to be the five blooming flowers of the second curve of Crypto growth and asset chainization. Among them, stablecoins, DAT, and stock tokenization have been discussed earlier and will not be repeated.
RWA is an interesting track; it was unpopular last year, but has become more popular this year, albeit with more problems, mainly including: 1) Most parties involved in RWA assets or even platforms treat RWA as a fundraising tool, without considering issues such as post-issuance turnover purchasing power, exit issues, liquidity issues, income generation issues, market-making issues, and sustainability issues; 2) There is no consideration or assessment of the fair value of RWA assets and the Oracle process; 3) Beyond fundraising functions, there is no economic design and ecological construction for combinability and programmability, which is no different from Web2's P2P and Crowdfunding ideas.
In the past few months, we have engaged with numerous RWA partners. Abstractly speaking, ++RWA++ ++is essentially building a quasi-first market for some non-standard assets++. This is, in fact, a dilemma of "do not impose on others what you do not desire for yourself." For assets that do not have sufficient consensus, purchasing power, and liquidity, it is indeed difficult to achieve a one-step solution through RWA. The entire asset tokenization still needs to undergo a process of standardization, fair valuation, marketization, and financialization of the assets themselves. The most challenging issue for RWA assets is the liquidity problem of large mid-term tradable assets, which is the problem faced by structured financial structures and liquidity asset disposal institutions in traditional markets. This remains an area lacking effective solutions in the current Crypto asset tokenization market.
Compared to many people's intuitive focus on real estate, digital collectibles, and artworks, the RWA assets that are more suitable for tokenization at this stage are actually Supply Chain Fi and PayFi, as the characteristics of their underlying liquid assets support the feasibility of tokenized trading flow.
On-chain asset management is essentially a comprehensive track for categorically managing various assets under the wave of stablecoins. It is fundamentally a systematic project connecting liquid assets with liquid funds, from economic model design to platform products, from asset selection to asset management operations, all of which are more complex than TradFi and require multi-faceted professional actuarial quantitative capabilities. CICADA Finance has rapidly iterated its on-chain asset management capabilities in the growth of the second curve over the past six months, pioneering new standards for on-chain asset management, and welcomes communication and cooperation with different assets and ecosystems.
7. The industry fragmentation and cultural split following the launch of the second curve of Crypto growth
After the SEC launched Project Crypto in August, the rapid growth of the second curve of Crypto accelerated further differentiation in the entire Crypto market. Markets in North America, Southeast Asia, the Middle East, and Africa began to show completely different characteristics.
The development of Native DeFi and the stablecoin ecosystem is strongest in New York and the East Coast; RWA and coin-stock linkage have opportunities in global financial cities, but each is affected by its own policy peculiarities, adding to the cognitive inertia of mainstream market practitioners, presenting different interpretations; Africa, South Asia, and South America are developing more from the perspective of Supply Chain Fi and PayFi applications, which are truly the mainstream emerging markets, currently not yet priced into the Crypto Market but possessing immense future potential; Southeast Asia has instead become a base for the subsequent development of the first curve, with centralized exchanges and narrative projects gathering here to form new purchasing power.
The different social environments under different geographies have formed a fragmented stratification of the Crypto market, with global finance facing disruptive changes in financial reforms and asset pricing methods across different dimensions. Stablecoins are merely the first step in this process.
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