“Finance evolves when infrastructure becomes programmable.” — DNA Crypto.
For years, digital assets were discussed as competing technologies. Bitcoin versus crypto. Stablecoins versus banks. Tokenisation versus traditional markets. That framing is now obsolete.
Institutions are not choosing between these technologies. They are assembling them into a coherent financial stack.
This stack mirrors traditional finance but operates with greater efficiency, transparency and resilience. It consists of three distinct layers, each performing a specific role.
– Tokenised real-world assets for yield and exposure.
– Stablecoins for settlement and liquidity.
– Bitcoin for reserves and collateral.
Together, they form the Tokenised Financial Stack.
The Three-Layer Institutional Model
Modern finance has always relied on layers. Securities generate returns. Cash enables settlement—reserves anchor trust. The tokenised system follows the same logic, but with upgraded infrastructure.
Tokenised RWAs: Assets and Yield
Tokenised real-world assets represent securities on programmable rails. Bonds, funds, private credit and real estate can now be issued, settled and reported on-chain.
This improves transparency, reduces reconciliation costs and accelerates settlement. More importantly, it allows assets to integrate directly with digital liquidity systems.
DNACrypto has explored this transition in depth in Real-World Asset Tokenisation and The Rise of Real-World Assets.
RWAs are the productive layer of the stack.
Stablecoins: Settlement and Liquidity
Stablecoins function as digital cash. Institutions use them for settlement, treasury flows and liquidity management, not speculation.
They enable instant settlement, automated cash movement and continuous liquidity. When combined with tokenised assets, Stablecoins eliminate delays in traditional clearing systems.
This role is explored in Real-World Asset Tokenisation in 2025, where Stablecoins act as the connective tissue of on-chain markets.
Stablecoins are the movement layer of the stack.
Bitcoin: Reserve Asset and Collateral
Bitcoin occupies a different role entirely. It is neither a settlement instrument nor a yield asset. It is a reserve.
Bitcoin provides scarcity, neutrality and durability. It can act as balance-sheet collateral, long-term reserves and a hedge against systemic risk. This mirrors the role gold and sovereign bonds play in traditional systems.
DNACrypto examines this function in Digital Gold 2.0 and Real Estate Meets Digital Gold.
Bitcoin is the trust layer of the stack.
Why These Technologies No Longer Compete
Early narratives framed Bitcoin, Stablecoins and Tokenisation as rival ideas. Institutions now understand they solve different problems.
– Tokenised RWAs generate returns.
– Stablecoins move value efficiently.
– Bitcoin anchors confidence and collateral.
This is the same separation of roles found in traditional finance, only rebuilt with programmable infrastructure.
BlackRock’s approach reflects this thinking, as analysed in BlackRock’s Tokenisation Vision. The future is not one asset replacing another. It is systems converging.
Why Europe Is Uniquely Positioned to Lead
Europe combines regulatory clarity with institutional credibility. MiCA and the DLT Pilot Regime provide legal certainty for tokenised issuance, Stablecoin settlement and compliant custody.
This enables banks, funds and asset managers to build production systems rather than pilots. Europe’s capital markets, often criticised for fragmentation, may benefit most from unified digital rails.
The regulatory context is explored in “Tokenised Assets” and “Tokenising the Real World”.
What This Means for Banks, Funds and Sovereigns
Banks will operate tokenised settlement layers alongside traditional rails. Funds will be issued and managed directly on-chain. Sovereign capital will increasingly interact with programmable markets.
This is not a revolution. It is a migration.
Institutions that understand the Tokenised Financial Stack early will shape its standards, liquidity and governance.
The DNA Crypto View
The future of finance is not a single asset or protocol. It is a layered system that mirrors traditional finance while outperforming it.
– Tokenised RWAs create yield.
– Stablecoins move capital.
– Bitcoin secures the foundation.
Institutions are not debating which technology wins. They are building with all three.
Image Source: Adobe Stock
Disclaimer: This article is for informational purposes only and does not constitute legal, tax or investment advice.
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