Wall Street’s Crypto Migration Gains Momentum, but Pace Remains Cautious
Wall Street’s long-awaited move into crypto is becoming a reality, according to executives from Ondo Finance, Robinhood-owned Bitstamp, and Babylon Labs. Speaking at a panel during Consensus Miami 2026, they discussed the shift but acknowledged that institutional adoption is still slower and more fragmented than many in the industry anticipated.
Conversation Shifts from ‘What’ to ‘How’
Ian De Bode, President of Ondo Finance, said it is clear Wall Street is embracing crypto, pointing to recent partnerships with Broadridge and DTCC focused on tokenizing securities and blockchain-based shareholder voting. Nicola White of Robinhood noted that over the past two years, bank conversations have shifted from explaining blockchain basics to helping them build practical implementations.
Real Infrastructure Improvements
The panel emphasized crypto infrastructure advantages over traditional finance, particularly in settlement speed and market access. De Bode highlighted Ondo’s tokenized treasury products allowing weekend minting and redemption while earning daily yield—capabilities still unavailable in traditional money markets. However, they acknowledged institutional adoption remains constrained by legacy systems and unclear regulations, with banks building cautiously while awaiting clearer guidance.
Capital Efficiency Over Price Speculation
Boris Alergant from Babylon Labs argued institutions increasingly focus on capital efficiency rather than bitcoin price appreciation. His firm’s bitcoin-backed lending products let investors borrow against native bitcoin holdings without giving up custody, appealing to banks seeking yield without extra counterparty risk.
A Growing Divide Between U.S. and Offshore Markets
The panel highlighted a divide between regulated U.S. markets and offshore crypto ecosystems. De Bode suggested permissionless DeFi innovation will likely continue outside the U.S., even as domestic banks adopt controlled blockchain systems. Despite this bifurcation, panelists broadly agreed the two systems will converge as institutional capital and crypto-native liquidity deepen. For now, the transition remains a work in progress, driven by cautious experimentation.
