Wall Street Staking ETH Signals Shift to Blockchain Finance

In a strong statement that reflects how Wall Street is starting to think, Tom Lee—the co-founder of Fundstrat Global Advisors—said big financial companies will soon start staking Ethereum (ETH).

According to Lee, this move will help them take part in the growing blockchain world. As reported by Cointelegraph, he said Ethereum has the power to become the backbone of the next era of global finance.

“This is the difference between centralized finance and DeFi,” Lee said. He highlighted how Ethereum’s open architecture allows institutions to engage directly with decentralized finance protocols. This is something not possible in the traditional, tightly controlled financial world.

Ethereum’s Role in the “Financialization” of the World

Lee’s comments come at a time when Ethereum is gaining attention far beyond just the crypto world. More banks and governments are exploring digital IDs, tokenized assets, and smart contracts—and Ethereum sits at the center of it all.

Lee believes that as the world becomes more digital, everything from real estate and stocks to insurance and personal data will turn into online financial tools. He says Ethereum is the platform best suited to make this happen.

“Wall Street will stake ETH not just for yield, but to be involved in enhancing Ethereum itself,” Lee explained. By staking, institutions don’t just earn passive income—they help secure the network and actively participate in its governance.

The Growing Appeal of ETH Staking

Ethereum switched from proof-of-work to proof-of-stake (PoS) in 2022. This change made staking the backbone of its consensus mechanism. Since then, staking has grown popular with both retail and institutional investors.

Today, more than 27 million ETH—worth over $90 billion—is locked in staking contracts. This shows strong confidence in Ethereum’s future.

Institutional players have noticed this trend. Big names like Coinbase, Binance, and even JPMorgan now offer ETH staking services or are exploring how to benefit from it. For these companies, staking is not just a way to earn rewards. It also lets them stay involved and keep up with the fast-changing digital finance world.

Lee’s remarks suggest this is just the beginning. As financial giants look for ways to future-proof their business models, staking Ethereum could soon become standard practice.

Centralized Finance vs. DeFi: A Structural Shift

Tom Lee drew a clear contrast between centralized finance (CeFi) and decentralized finance (DeFi). He framed Ethereum as the gateway to this new era. While CeFi depends on intermediaries, Ethereum allows peer-to-peer financial interactions governed by code, not corporations.

“This is why Ethereum matters,” Lee said. “It’s not just a crypto asset—it’s infrastructure. And when you’re building infrastructure for the financial system of the future, everyone wants in.”

Outlook: Institutions Can’t Afford to Sit Out

Ethereum 2.0 upgrades continue to improve scalability and reduce gas fees. These changes make the network more attractive than ever. Lee believes that integrating financial services with Ethereum is not a question of “if,” but “when.”

“The financialization of everything is already underway,” Lee concluded. “Ethereum is the rails for that future, and Wall Street knows it.”

As more institutions enter the blockchain space, staking ETH could become their ticket to relevance in an increasingly decentralized world.