Coinbase Global's (NASDAQ:COIN) inclusion in the S&P 500 (INDEXSP:.INX)), Circle’s pending initial public offering, Robinhood Markets' (NASDAQ:HOOD) acquisition of WonderFi and a wave of product launches all reinforced a shared theme across the event: crypto is no longer on the fringe — it’s entering its mainstream era.
The digital shift
Panelists at Consensus were aligned on one thing: technologies like tokenization and stablecoins are becoming essential infrastructure for modern finance. Across multiple panels, speakers emphasized how these tools are reshaping everything from cross-border and bond coupon payments to capital markets.
Ripple’s Jack McLeod and Mark Greenberg of Kraken reinforced this narrative, predicting that future financial systems will likely center on digital assets. In their view, banks will need to position themselves to issue or integrate stablecoins in order to remain competitive in a digitally native financial system.
Andy Baehr, head of product and research at CoinDesk, spoke about the success of tokenized financial products during an interview with the Investing News Network (INN) at the event.
“The success of tokenized money market funds and treasuries in the last 18 months has been phenomenal,” he said.
In a standout session on bridging traditional finance (TradFi) and DeFi, Connexus Digital Assets’ Cherie Bucha revealed that the company has processed over US$2 trillion in tokenized volume to date, while WisdomTree’s Maredith Hannon touted a suite of 13 tokenized products already live on two platforms.
Yet speakers at Consensus also acknowledged the regulatory and technological complexity of this evolution, from compliance to interoperability across platforms.
“In the traditional world, whatever you tokenize, you want to be able to use it as collateral,” said Baehr.
“If I'm an institution and I'm trading with a derivatives exchange, or I'm trading bilaterally with an OTC dealer, and I have to post collateral, sometimes I want that collateral to be US dollar-based, but I definitely want it to be working for me, right? And I can't with stablecoins, but I can with tokenized treasuries or money market funds. What the DeFi world is looking to do is expand that further and be able to have pools of liquidity on anything.”
Canadian businessman Kevin O’Leary and Dean Skurka of WonderFi framed stablecoins as a foundational layer of the “next chapter” for cryptocurrencies after the passing of the GENIUS Act. O’Leary also offered a sharp reminder: outside of Bitcoin, assets hoping to endure must provide tangible utility.
In a similar vein, during a panel on yield-bearing stablecoins, backed by instruments like US Treasuries or hedge fund shares, speakers described how these next-generation assets are gaining traction, though they currently represent just 2 to 3 percent of the US$250 billion stablecoin market.
How yield is fueling investment
While stablecoins were explored at Consensus, they were just one aspect of a broader trend toward yield-generating digital assets that participants honed in on at the event. Panelists also led discussions around the integration of DeFi into traditional systems to help investors pursue returns through staking and futures.
Grayscale’s global head of exchange-traded funds (ETFs), Dave Lavalle, said interest from wealth managers is rising as the US Securities and Exchange Commission (SEC) loosens its stance on digital assets.
Financial advisors now face a risk if they lack a crypto strategy.
“I think we've had 6,000 (credible) conversations with financial advisors this year about exactly how to talk to clients about incorporating crypto into their portfolios. It starts with Bitcoin,” he said.
Lavalle added that discussions have now shifted to exploring more sophisticated strategies for integrating crypto into portfolios and examining opportunities for yield generation.
During an interview at Consensus, Bitget COO Vugar Usi Zade told INN his the company has been investing heavily in institutional offerings over the last two years. “Most of the traditional finance needs are met by the institutions and then distributed among the retail (investors), and we are trying to give similar opportunities, whether it is big hedge funds, or the family offices or institutions who want to acquire digital assets on behalf of their clients, do the custody for their clients. That is what makes crypto and TradFi finally come to that bridge point.”
Bitcoin’s evolution to a yield-generating asset was touched on during a panel that was led by James Van Straten and featured Babylon's head of business development, Clayton Menzel, among others.
Babylon's Layer 1 proof-of-stake blockchain, the Babylon Genesis mainnet, officially launched on April 10, and it allows Bitcoin holders to earn $BABY tokens by staking Bitcoin.
Grayscale and other asset managers have filed to amend their Ethereum ETFs to allow staking and unlock investor returns, with Grayscale expecting a decision from the SEC by July.
Staking in ETFs has already been approved in other markets. Lorien Gable and Pascal St. Jean illustrated how the Ontario Securities Commission’s proactive stance made Canada the first country to approve a Solana spot ETF with staking. The 50/50 demand split between the US and Canadian markets highlights a clear appetite for crypto yield.
Beyond these topics, discussions at Consensus also touched on how liquidity provision in decentralized exchanges and perpetual futures offers diverse avenues for digital asset yield.
On the “Is Wall Street ready for Institutional DeFi?” panel, participants said they see yield generation as a long-term opportunity, with growth anticipated from tokenized underlying assets and more sophisticated DeFi protocols.
Blue Macellari, head of digital assets at T. Rowe Price (NASDAQ:TROW), elaborated on this vision: “From an asset management perspective, I can be both an issuer of a tokenized fund, but I am also a buyer or consumer of a tokenized underlying security, a tokenized stock, a tokenized bond, and I think the next level of unlock is when we really have tokenized underlying securities, because then we have both pieces moving at the speed of blockchain.”
The industry still has work to do. Speakers at a panel moderated by Beahr unpacked the challenges still facing DeFi, emphasizing the need for clearer communication, risk management and user education.
“There's no money market in crypto for any asset, for Bitcoin or for stablecoins. There's no yield curve. There is no unified benchmark for lending or borrowing rates outside of what you see in DeFi,” he later explained to INN.
What’s called “yield” in crypto can come from different sources, each presenting different risks.
“Clarifying all that, knowing what investors expect when they hold an asset, but also being very clear about what an exchange or protocol or service is going to offer as yield … is a job that the industry has to do much better. It was done really poorly before. I think it's still a little fast and loose, and it needs to tighten up,” he said, adding that there is no connection between traditional yield benchmarks and how crypto yields function.
Creating crypto-native yield curves could help bridge that gap.
Regulator conversations shaping crypto's future
Throughout discussions at Consensus, regulation was the unifying thread.
Speakers noted the pros and cons of Canada's unique approach of classifying crypto contracts as securities.
“I think the pro is definitely more regulatory clarity than we've seen in some other jurisdictions … but a big disadvantage of it is a lack of flexibility and the room for experimentation. And also, there are a lot of areas in the space that I don't think fit nicely into that framework,” said Morva Rohani, executive director of Canada’s Web3 Council.
She presented stablecoins as an example.
“I think regulators have done a great job at being very pragmatic, but I think right now is the time to have a second look and say who else within our regulatory parameter … needs to step up, or do we need more bespoke frameworks for certain things, versus just trying to fit things in places that they may not necessarily work," Rohani added.
Via a pre-recorded interview, US Congressman French Hill spoke about the developing progress of a market structure bill and pending stablecoin legislation, which was working its way through Congress as Consensus unfolded.
Hill emphasized bipartisan support and the goal of facilitating digital asset activities.
Bo Hines from the President’s Council of Advisors on Digital Assets also spoke on the topic of legislative progress, detailing current efforts from the US administration, including the Genesis Act and interagency collaboration, while addressing concerns about potential conflicts of interest.
Together, these conversations painted a complex picture of the ongoing efforts to establish a robust and effective regulatory framework for the crypto industry.
Investor takeaway
Consensus made it clear that the digital asset space has moved beyond its nascent stage.
As TradFi integrates with DeFi and technological advancements continue to evolve, cryptocurrencies will become an even more integral part of the global financial ecosystem.
The insights and dialogues at Consensus highlight a pivotal moment in the industry's history, pointing toward a future where digital assets play a central role in shaping how we transact, invest and manage our financial lives.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
View original content: https://www.newswire.ca/en/releases/archive/October2021/26/c4002.html 
