Crypto wanted to replace Wall Street – Instead, Wall Street took over crypto
Crypto began as a push to remove banks and other trusted intermediaries from money movement, using Bitcoin and later Ethereum to enable permissionless transfer and programmable applications. Over time, that ideal shifted: major institutions now use blockchain rails for settlement, custody, and tokenized assets. JPMorgan’s Kinexys processes trillions in tokenized payments and is moving JPM Coin onto a regulated blockchain; BlackRock’s BUIDL tokenized Treasury fund has grown to about $2.4 billion and spawned more filings; Visa, Mastercard, and Stripe now support stablecoin settlement or payments infrastructure. For most users, the change is mostly invisible: faster cross-border transfers, ETF-style crypto exposure, and stablecoin balances inside familiar apps. But this convenience reduces self-custody and permissionless access, replacing it with regulated intermediaries, compliance, and custodial controls. Regulation and institutional scale have made crypto more durable, but also more centralized, as the technology becomes embedded in the existing financial system rather than replacing it.
