Key Takeaways
- • Bitwise Chief Investment Officer Matt Hougan named Ethereum, Solana and Chainlink as the altcoins best positioned to benefit from tokenization, arguing that owning the underlying infrastructure matters more than holding tokenized assets.
- • Hougan said tokenized assets offer modest advantages such as around-the-clock trading and easier borrowing, but most returns still derive from the underlying asset, such as a tokenized Tesla share.
- • Hougan estimated Chainlink holds roughly 70% to 80% of the market for connecting blockchains to real-world data, and valued it at about $6 billion to $7 billion, which he called "relatively small."
- • The interviewer noted spot Chainlink ETFs, which began trading in December 2025, have recorded no week of net outflows despite weak market sentiment.
- • Hougan expects 24-hour markets and DeFi-based lending against stocks to become widely available over the next decade.
Summary
Bitwise Chief Investment Officer Matt Hougan argued in a recent interview that investors seeking to benefit from tokenization should own the networks enabling it rather than tokenized securities alone, according to Coinpedia. He said a tokenized Tesla share remains a Tesla share, with most of the return driven by the stock itself, though tokenized assets do trade around the clock and are easier to borrow against. "If you as an investor want to benefit from tokenization, you have to own the infrastructure that makes it happen," Hougan said.
Hougan named three altcoins. Ethereum and Solana were described as high-performance layer 1 networks forming the base on which tokenization is built. Chainlink was highlighted as the data connection layer: Hougan compared a blockchain without external data to a spreadsheet unable to see stock, bond or currency prices without a link to the outside world. He estimated Chainlink holds about 70% to 80% of the market for connecting blockchains to real-world data, and said nearly all real-world assets moving on-chain would need to interact with it.
Hougan put Chainlink's valuation at roughly $6 billion to $7 billion, which he described as relatively small for infrastructure that could underpin global markets for the next 30 to 50 years. The interviewer noted that spot Chainlink ETFs, which began trading in December 2025, have not recorded a single week of net outflows despite weak market sentiment; Hougan said this shows "investors get it." He also encouraged investors to look at companies building aggressively in the space and described tokenization as a once-in-a-generation upgrade to the financial system.
Hougan expects two major shifts over the next decade: markets trading 24 hours a day, and DeFi protocols offering stock-backed lending to any investor, a service mostly limited to wealthy brokerage clients today. He also suggested tokenization could become the largest financial inclusion tool ever, giving anyone with a mobile phone access to global investments.
Hougan named three altcoins. Ethereum and Solana were described as high-performance layer 1 networks forming the base on which tokenization is built. Chainlink was highlighted as the data connection layer: Hougan compared a blockchain without external data to a spreadsheet unable to see stock, bond or currency prices without a link to the outside world. He estimated Chainlink holds about 70% to 80% of the market for connecting blockchains to real-world data, and said nearly all real-world assets moving on-chain would need to interact with it.
Hougan put Chainlink's valuation at roughly $6 billion to $7 billion, which he described as relatively small for infrastructure that could underpin global markets for the next 30 to 50 years. The interviewer noted that spot Chainlink ETFs, which began trading in December 2025, have not recorded a single week of net outflows despite weak market sentiment; Hougan said this shows "investors get it." He also encouraged investors to look at companies building aggressively in the space and described tokenization as a once-in-a-generation upgrade to the financial system.
Hougan expects two major shifts over the next decade: markets trading 24 hours a day, and DeFi protocols offering stock-backed lending to any investor, a service mostly limited to wealthy brokerage clients today. He also suggested tokenization could become the largest financial inclusion tool ever, giving anyone with a mobile phone access to global investments.
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