Banks Likely to Choose Ethereum for Finance, Says Raoul Pal

Top crypto executives are making a stronger call on Ethereum’s role in traditional finance. In their view, banks will prefer Ethereum when real money, real assets, and real settlement move on-chain.

Real Vision’s Raoul Pal says Wall Street is already moving toward blockchain infrastructure. The remaining question is not whether banks adopt blockchain, but which network they trust most. His bet is on Ethereum, the largest DeFi network globally.

Why Banks May Choose Ethereum

Pal said large financial institutions care most about uptime, resilience, scale, and proven history.

Banks do not usually bet core systems on untested technology. They prefer infrastructure with a long operating record, deep liquidity, large developer support, and clear security standards. This is where Ethereum stands out.

He said, “The entire banking system will go to $ETH,” adding that finance will remain multi-chain rather than single-chain. The argument is that decision-makers choose systems that reduce career and operational risk.

Wall Street Already Testing Blockchain Rails

Executives say the transformation has already begun. Banks are now testing tokenization, stablecoins, blockchain settlement, and custody systems in live pilots.

Meanwhile, firms are comparing networks on speed, reliability, compliance readiness, and ability to handle large transaction volumes.

Vivek Raman, CEO of Etherealize, said Ethereum has the best product-market fit for upgrading financial markets.

He added that Ethereum is not only a tokenization platform, but an “everything platform” for financial infrastructure.

Additionally, Raman said Ethereum’s move to proof-of-stake made it more aligned with modern finance. The system reduced energy use and improved the network’s position with institutions focused on sustainability and efficiency.

Executives also point to Ethereum’s smart contract lead, liquidity depth, and long network history as reasons it remains central in tokenized finance.

$4.2 Trillion Tokenization Call by 2027

Pal has also predicted that major global banks could move clearing, settlement, and custody operations to Ethereum within 12 to 18 months. He estimates that the transition could unlock $4.2 trillion in tokenized asset liquidity by 2027.

Pal’s report states that a key catalyst is ISO 20022, the global bank messaging standard. If integrated smoothly with Ethereum systems, it could reduce friction between legacy finance and blockchain rails.

Pal also pointed to Project Guardian, led by the Monetary Authority of Singapore with JPMorgan and DBS Bank, as proof that institutional blockchain use is moving from theory to execution.

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