Bitcoin, Blockchains, Tokenization Form The Core Of New Global Financial Infrastructure: Bernstein

As global trust in centralized institutions frays, analysts at Bernstein say three foundational decentralized technologies — Bitcoin BTC/USD, public blockchains and tokenized assets — are poised to become integral to a new financial order.

What Happened: In its report, Bernstein's digital assets team argues that the combination of geopolitical realignment, trade conflicts and financial system fragmentation is accelerating the adoption of decentralized technologies across sovereign and institutional actors.

"Bitcoin, decentralized blockchains, and tokenized currencies are forming the backbone of a new settlement and value layer," wrote lead analyst Gautam Chhugani in the report.

Bernstein sees Bitcoin increasingly viewed as a digital store of value free from geopolitical entanglements.

"Bitcoin is the only ‘store of value' asset which is not controlled by any single nation-state," the report states.

With roughly $2 trillion in market cap, Bitcoin remains small compared to gold's $20 trillion, but its self-custodial, portable nature and 24/7 liquidity are making it attractive to both corporates and potentially sovereign actors.

Institutional flows continue to grow: over $60 billion flowed into Bitcoin ETFs in 2024, while corporate treasuries, including Strategy Inc. MSTR, held over 10% of circulating supply combined.

Bernstein also expects the U.S. government to formalize its recently announced Strategic Bitcoin Reserve, beginning with ~200,000 BTC seized by law enforcement.

Also Read: Treasury Secretary Bessent: Trump Admin Will Take A Close Look At Impediments To Blockchain, Stablecoins’

Decentralized blockchains like Ethereum ETH/USD and Solana SOL/USD are positioned as neutral cross-border settlement infrastructure.

Ethereum's transition to proof-of-stake, its deflationary supply dynamic and increased institutional usage via ETFs have all enhanced its credibility, while Solana is being recognized for its low-cost, high-throughput architecture.

"Decentralized blockchains solve for global trust and permission-less settlement without centralized authority," the analysts note, emphasizing that speculative token trading was merely a proving ground for more serious use cases like global finance.

Tokenization is the third pillar Bernstein identifies, transforming traditional assets like treasuries, equities, and currencies into digital representations on-chain.

Today, over $5 billion in U.S. Treasuries are tokenized, led by initiatives like BlackRock's BUIDL.

Meanwhile, stablecoins, now with a $234 billion supply, settled over $16 trillion in value in 2024, making them a critical backbone for crypto and potentially for global B2B transactions and remittances.

"Stablecoins are becoming systemically important to the U.S. financial infrastructure," the report states, pointing to their treasury holdings and the incoming legislation as tailwinds for broader adoption.

What’s Next: Bernstein views these three pillars not as isolated innovations but as components of a new interoperable financial stack.

"In a multipolar, deglobalized world, these technologies are no longer optional—they're becoming core infrastructure," said Chhugani.

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