Ethereum Surges in Institutional Demand As Stablecoin Supply Tops $300 Billion

Ethereum’s institutional adoption moved sharply higher at the start of 2026, as global banks, asset managers, and fintech platforms launched new products directly on the network.

David Walsh, Head of Enterprise at the Ethereum Foundation, said in a Feb. 9 update that January delivered one of the fastest institutional starts Ether has seen in years.

Fidelity Digital Assets introduced its own stablecoin, FIDD, on the network mainnet, while total stablecoin supply across the market climbed beyond $300 billion, with ETH holding the largest share.

Traditional finance grew with filings and investment products. Morgan Stanley filed paperwork for an ETH ETF, and Grayscale was the first US ETF provider to share staking rewards.

This is a new way for crypto yields to be introduced into traditional markets. In Europe, a set of 12 banks under Qivalis announced the launch of a euro-backed stablecoin on Ether, which is in line with Europe’s regulations under MiCA.

Tokenization Growth Signals Broader Financial Integration

In January, the use of Ether in the tokenization of real-world assets increased. The total value of tokenized commodities on the network was $5 billion, which is approximately 70% of the market in this sector.

J.P. Morgan launched a tokenized money market fund named MONY on the public Ether network with its own capital of $100 million. Ondo Finance’s total value locked on ETH increased to $1.8 billion, which is over 70% of its total activities on the platform.

Fintechs continued to scale alongside banks. Revolut’s users have staked over 60,000 ETH, indicating more mainstream participation in ETH staking. Regulators began testing infrastructure that uses Ethereum as collateral.

The US CFTC launched a pilot program that allows ETH and USDC to be used as margin collateral in derivatives markets, indicating regulators are becoming more comfortable with blockchain technology in regulated finance.

Long Ethereum Consolidation Keeps Breakout Debate Active

As institutional activity increases, Ethereum’s price remains in a state of little change. On Feb. 9, Ethereum enthusiast Poseidon stated that ETH has been trading between $2,000 and $4,000 since March 2024.

This is part of a larger trend of sideways trading that began after the peak in 2021. Poseidon described this larger trading range as an accumulation phase, not a weakness, and likened it to gold being squeezed for years before a large breakout. The key signal that traders watch for is breaking above $4,000.

However, these forecasts are market commentary and not yet confirmed results. As of Feb. 9, Ethereum is currently trading around the middle part of its range, as it is based on price data from major trackers such as CoinMarketCap.

2026 is a possible turning point for Ethereum adoption, according to Standard Chartered, while BlackRock states that Ethereum supports 65% of tokenized assets in the market today.

Also Read: Ethereum (ETH) Derivatives Market Sees $122 Million Whale Long Trade