Original Title: "Yang Ge Gary: On-chain Assetization Trend Under Stablecoin Pricing Mechanism"

Original Source: Yang Ge Si Xue

By August 2025, global financial centers experienced drastic market changes due to the stablecoin wave. The collaboration between Genius Act and Project Crypto, along with the wealth creation examples from Mstr and Circle, disrupted the equilibrium of traditional finance. Stablecoins, Coin-Stock Linkage, DAT, RWA, and on-chain asset management quickly became the new competitive focal points in this environment.

Fundamentally, the implementation of the stablecoin act marked the beginning of a comprehensive reform of global financial on-chainization. The second curve of Crypto growth will follow the application scenarios of stablecoins and the tokenization of various assets. It will combine the flexibility of Crypto finance with the historical experience of professional finance to achieve differentiated development under various regional compliance frameworks.

tl;dr

1. The essence of the Genius Act is to delegate currency issuance and settlement rights to enhance currency pricing power.

2. Stablecoins triggered the reform of global financial on-chainization and asset on-chainization through changes in currency pricing.

3. The reform rapidly eroded the long-standing cartel alliance in traditional finance, leading to a chaotic restructuring opportunity.

4. Trump successfully leveraged his interests at a historical inflection point, creating an incredible legitimacy.

5. Coin-Stock Linkage's two directions, Securitization and Tokenization, and their market characteristics.

6. Industry characteristics and issues of Stablecoins, DAT, Stock Tokenization, RWA, and on-chain asset management.

7. Industry fragmentation and cultural divides after the initiation of Crypto's second growth curve.

1. The essence of the Genius Act is to delegate currency issuance and settlement rights to enhance currency pricing power.

In a previous article "The GENIUS Act and On-chain Shadow Currency," I elaborated on the irreversible trend of the declining control of the traditional dollar and the Genius Act's aim to delegate issuance and settlement rights in exchange for the decision to allow wider circulation of the US dollar. In fact, within three months after the proposal of the Genius Act, the market further proved the foresight of this decision. At this stage, the relaxation and delegation of the issuance and settlement rights of the US dollar effectively expanded the market application of USD-pegged stablecoins in the form of shadow currencies, enhancing a more widespread pricing power. Currency pricing power is the embodiment of the consensus competitiveness of future on-chain finance, while issuance and settlement rights will gradually fade into a common utility infrastructure, losing their moat and competitive value.

The Future Currency War is a Consensus Power Competition of Currency Applications, rather than a Competition of Currency Issuance and Settlement Permissions. This point forces traditional finance to undergo a fundamental transformation due to the financialization on the blockchain. However, it is evident that many countries, regions, as well as some traditional financial experts, scholars, and entrepreneurs have not recognized or found it challenging to shift to this concept. In other words, the future M2 of on-chain currency will gradually lose its original meaning. The excessive issuance of currency and tokenized assets will represent a form of freedom, but this freedom does not imply equivalent value. The true value will exist in the consensus power of currency and tokenized assets, reflected in their liquidity, purchasing power, interoperability, community acceptance, and other substantial quantifiable market value feedback.

At this turning point of such a qualitative reform, the flexibility of paradigm shift concept is crucial. Many traditional economic definitions, market control methods, and asset operation models will undergo changes. For example, while M2 loses its original meaning, it may be adjusted through a liquidity value factor as a multiplier to obtain an effective circulation value of a currency or asset, and so on. Of course, various monetary and fiscal policies also need to undergo fundamental changes to adapt to the new approach of forming on-chain economic governance.

2. Stablecoins have sparked a global financial on-chain and asset on-chain reform through changes in currency pricing form

After the Genius Act quietly initiated this new currency war, countries and regions worldwide have successively introduced their stablecoin acts. Although the foundation of many acts is still anchored in the inertia rules of traditional monetary finance and requires time to iterate and adjust, the overall financial market's on-chain reform has begun.

Although there doesn't seem to be much difference in pricing between settling assets in 1USD and 1 USDC (or other stablecoins), significant changes have occurred in the financial significance of assets due to the different nature of their currency mechanisms. This is mainly reflected in various assets' programmability, composability, market liquidity, ecosystem diversified circulation, and the flexibility of financial derivatives.

Recently, when friends from a traditional finance background asked about the characteristics of on-chain asset management done by CICADA Finance, I would use the analogy of a "Financial Motherboard." Various financial asset strategies are similar to different algorithmic "financial chips," forming a flexible financial portfolio by selecting and plugging in asset management on the financial motherboard, where stablecoins play the role of "financial current" connecting the chip and motherboard (Note 1).

3. The reform is rapidly dismantling the long-standing cartel alliance in traditional finance, bringing an opportunity for interest realignment in the midst of chaos

From the Genius Act to Project Crypto, stablecoins and on-chain finance reform have fundamentally disrupted the traditional financial rent-seeking model. In a different era of history, this would surely have triggered massive conflicting interests. However, this time the transition appears remarkably smooth and acceptable. Is it because modern financial regulations have made competition fair or because contemporary institutions are more civilized compared to historical times?

Of course not. The reason is quite simple: the current global societal development curve is advancing too rapidly. Companies that understand the trend and quickly transform can obtain additional profits far exceeding the cost of sticking to the old interest and resisting jointly. The previous stage's financial cartel alliance was rapidly shattered and abandoned by companies that transformed quickly, from Wall Street to the entire New York. This time, the whole sector chose the (+3, +3) model to enter a new phase for strategic interactions. This shift will inevitably lead to a chaotic restructuring of the financial market within a phase, while also presenting numerous trading opportunities for new assets and funds.

Over the past month, I have observed in the New York market that cartels in different industries have varying degrees of solidification. Although the financial industry has rapidly transformed this time under the driving force 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 monopolistic alliances, the transaction environment in many industries is quite primitive, and many RWAs are far from meeting the requirements for entering the current tokenization upgrade.

4. Trump successfully grafted his own interests onto the node of historical transformation, forming an incredible legitimacy

It is still worth mentioning the crypto President Trump who is driving these rapid developments. Historically, driving reforms usually involve high risks and face significant resistance, especially when grafting personal interests onto them, which can fuel the fire. However, Trump's actions ingeniously intersected at a specific historical juncture, gaining incredible correctness and legitimacy. The benefits brought by an inevitable industry trend development offset a large amount of negative confrontation, creating a very unique and irreplicable effect.

5. The two directions of Coin-Stock Hybridization: Securitization and Tokenization, along with market characteristics

Coin-stock hybridization is a key topic in Q3 2025. Essentially, coin-stock hybridization involves two directions: first, stuffing tokenized assets into publicly traded companies in the form of stocks to create a capital premium; second, developing existing policies to tokenize stocks, creating a 24/7 tradable stock token market. The former is the process of Securitization, usually regulated by a country or region's securities regulator; the latter is the process of Tokenization, typically managed temporarily by alternative asset management regulations of a country or region, some falling under banking regulation for currency or payment, and others under alternative securities regulation.

The coin-stock linkage securitization process evolved a new term in Q3 2025, known as DAT (Digital Asset Treasury), which is a more flexible and universal process than ETF that involves incorporating tokenized assets into a publicly traded company to create a capital premium on its stock. Building on the success of the first-generation cases like Mstr, DAT has created a premium multiplier of 1.5x-2x (peaking at nearly 4x), making it the mainstream wealth creation vehicle in major financial cities such as New York and Hong Kong over the past six months. As the DAT market enters the end of Q3 and the beginning of Q4, key differences from the first-generation Mstr-BTC include: 1) Asset inclusion expansion, now encompassing other non-BTC tokenized assets like ETH and SOL; 2) Leveraging financial instruments in addition to the stock price premium multiplier from asset inclusion to achieve higher capital or monetary multiplier; 3) Unlike Mstr, which has a benchmark political and economic significance, the approach of small and medium-sized public companies is mostly purely commercial, leading to a more significant risk of the Davis double kill after obtaining the premium.

The tokenization process of the coin-stock linkage is still in its early stages in Q3 2025. There are several key issues: 1) Premature focus on the B2C scenario, with current demand not being sufficiently real (usually only involving needs to extend trading periods and evade taxes during non-compliant periods), still in the early stage of infrastructural development and B2B; 2) Not friendly enough to small and medium-sized project participants, with the profit difficulty issue stemming from Problem 1, only mature participants like Robinhood and Ondo Finance currently have the ability to support the early market; 3) Infrastructural development and B2B demand are relatively hidden and lengthy, and individual business models are challenging to monetize independently, requiring the formation of an industry chain to achieve overall resonance, which will take a period of growth. Many institutional investors have certain assumptions wrong in the early stages of stock tokenization development, with the following points currently being truly needed or in demand: 1) Achieving compliance pathways in different regions; 2) Enabling large-scale stock tokenization asset issuance through low-cost purchase/repo/held securities; 3) Establishing liquidity providers with substantial capital volume; 4) Creating leverage through financial tools such as lending and developing a derivatives market; 5) Providing a large amount of highly liquid assets with alpha exploitable value for the insider trading token quant strategy market.

By comparison, as of Q3 2025, the coin-stock linkage securitization process is closer to monetization than the tokenization process, but the window of opportunity it faces is also shorter; conversely, the tokenization process of the bond-stock convergence is a long-term development direction, representing an important step in the asset chainization process and will open up a larger market for strategic quantitative financial assets.

6. Stablecoins, DAT, Stock Tokenization, RWA, and On-chain Asset Management: Industry Features and Challenges

Stablecoins, DAT, Stock Tokenization, RWA, and On-chain Asset Management can be said to be the five key players driving Crypto's second growth curve and asset tokenization. Among them, Stablecoins, DAT, and Stock Tokenization have been discussed earlier and will not be reiterated here.

RWA is an interesting track. It was unpopular last year, but although it has gained popularity this year, it has also brought about more issues, including: 1) Most assets or even platforms entering the RWA space have treated RWA as a fundraising tool, without considering post-asset-issuance issues such as turnover purchasing power, exit strategies, liquidity, interest accrual, market-making, and sustainability; 2) The lack of or disregard for the assessable fair value of RWA assets and the Oracle process; 3) Apart from fundraising functionality, there is a lack of economic design and ecosystem development in terms of composability and programmability, which is no different from the P2P and Crowdfunding concepts of Web2.

In recent months, we have engaged with numerous RWA partners. In essence, RWA is essentially constructing a primary secondary market for some non-standard assets. This is, in fact, a dilemma of doing unto others as you would not want done unto yourself. For assets that lack sufficient consensus, purchasing power, and liquidity, it is challenging to achieve immediate tokenization through RWA. The entire asset tokenization process still needs to go through the standardization, fairization, marketization, and financialization of the asset itself. The most challenging issue for RWA assets to address is the liquidity problem of large-scale mid-term turnover, which mirrors the issues faced by structured finance structures and liquidity asset disposal institutions in traditional markets. This remains a challenge in the current Crypto asset tokenization market without effective solutions.

Compared to real estate, art, and collectibles that many people intuitively focus on, the stage most suitable for realizing RWA asset tokenization is Supply Chain Fi and PayFi at this stage, whose underlying liquidity asset characteristics support the feasibility of tokenized transaction flow.

On-chain asset management is essentially a comprehensive track that categorically manages various assets under the stablecoin wave. It fundamentally deals with the systematic engineering of bridging Liquid Assets and Liquid Funds. From economic model design to platform products, and from asset selection to asset management operations, on-chain asset management is more complex compared to TradFi, requiring multi-faceted actuarial quantitative capabilities. In the past six months, CICADA Finance has rapidly iterated its on-chain asset management capabilities during the second growth curve, pioneering new standards in on-chain asset management. We welcome collaboration and communication from different assets and ecosystems.

7. Industry and Cultural Fragmentation After Crypto's Second Curve Launch

Following the August SEC Launches Project Crypto, rapid growth of Crypto's Second Curve has further differentiated the entire Crypto market. Various markets such as North America, Southeast Asia, the Middle East, and Africa are now showing completely different paths.

The development of Native DeFi and the Stablecoin ecosystem has shown the strongest momentum in New York and the East Coast; RWA and Equity Coin linkage have opportunities in global financial cities, but are each affected by their own policy specifics, amplifying the cognitive inertia of mainstream market participants, resulting in different interpretations; Africa, South Asia, and South America are more focused on developing from the perspectives of Supply Chain Fi and PayFi applications, truly representing mainstream emerging markets that have not yet been priced in by the Crypto Market, but possess tremendous follow-up power; Southeast Asia has instead become a base for the follow-up development of the First Curve, where centralized exchanges and narrative projects are gathering to form new purchasing power.

Differences in social environments due to geographic variations have led to a fragmented stratification of the Crypto market, with the global finance sector facing disruptive changes in financial reform and asset pricing methodologies across different dimensions, with Stablecoins being just the initial step.

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