Vertalo CEO Dave Hendricks Discusses Stablecoins, RWAs, and the Crypto Industry's Psyche

As stablecoins gain prominence in the regulatory landscape and tokenization moves closer to mainstream adoption, significant advancements in integrating traditional assets into the blockchain ecosystem are underway. Dave Hendricks, CEO of Vertalo, has been at the forefront of this change, working to modernize transfer agency and tokenization for real-world assets. In this interview, he sheds light on the evolution of stablecoins, the current state of tokenized securities, and reflects on the industry's ongoing adjustments.

Key Takeaways

Stablecoins have shifted from being a tool mainly for decentralized finance (DeFi) to becoming a key focus for large institutions in 2025.
Real-world assets (RWAs) have shown growth but still represent a small segment of the market, with institutional and marginal categories emerging.
Vertalo's unique approach as a non-broker-dealer software company is driving its success in the tokenization space.
Current trends indicate increasing interest in tokenizing private equity, leveraging Distributed Ledger Technology for asset management.
The crypto sector frequently experiences cycles of hype and disillusionment, reflecting a continual evolution in its landscape.

The Progress of Stablecoins and RWAs

When we last spoke in 2023, your reaction to PayPal’s introduction of a new stablecoin based on the Ethereum blockchain was notable. Fast forward to this month, and Visa has announced a stablecoin advisory. What’s your assessment of the progress we've made regarding RWAs, tokenized securities, and stablecoins?

Hendricks: Clearly, we have advanced significantly since early 2023. Three years ago, discussions about stablecoins were predominantly tied to their roles in DeFi borrowing and lending. As of late, stablecoins have emerged as a contentious focus in the crypto landscape, particularly following the Genius Act, which restricts banks from offering interest on stablecoins.

While RWAs have advanced, they continue to represent only a small portion of the total addressable market. There is active growth in two main categories: Institutional (like Treasuries and private, permissioned REPOs) and Marginal (Layer 1s issuing tokens without collateral).

The Institutional segment is currently leading, predominantly through federated and private channels, which aren't accessible to most individual investors or Registered Investment Advisors (RIAs). Conversely, some Marginal RWAs can be explored by those familiar with digital wallets, although they may not be suitable for individuals seeking to safeguard their investments or ensure stable returns. Tokenized equities are expected to gain significant attention in 2026, especially with support from the SEC and the upcoming Clarity Act. However, stablecoins took center stage in 2025, providing institutions—both banks and non-banks—an entry point into the crypto market due to Genius restrictions. Banks, now focusing on deposits and payments, face limitations on issuing yield-bearing stablecoins, which contradicts the initial beliefs that the Genius Act would benefit them.

Vertalo's Evolution Over the Past Year

Vertalo keeps a reserve of ETH for the fees associated with creating tokenized share ledgers on Ethereum. How has the company evolved over the last year?

Hendricks: As one of the few genuine software companies dedicated to digital transfer agency and integrated tokenization, Vertalo continues to adopt a distinctive market approach compared to many so-called tokenization firms. Since we aren't a broker-dealer nor do we create investment products for our own gain—only for our clients—we have attracted significant interest from those who prefer not to work with competitors who may act against them. Clients approach Vertalo with specific challenges that other firms often cannot address, and by working with us, they benefit from knowing that we’re a software company not taking fees on every transaction.

We have remained committed to this approach since we shifted our focus to Enterprise Software in mid-2022.

Upcoming Trends for 2026

What current trends capture your interest as we look towards 2026?

Hendricks: One of the more intriguing trends is the resurgence of interest in tokenizing and packaging private equity. As a company that specializes in transforming illiquid assets into tradable, transferable, and fractional instruments, we are encouraged that the market is finally recognizing what we identified nearly a decade ago: Distributed Ledger Technology represents a substantial advancement for asset and wealth management, especially concerning the transfer and distribution of these innovative financial products.

Crypto's Path Forward Amid Regulatory Changes

This year, the White House has made crypto-related announcements—like a proposed federal Bitcoin reserve, an end to SEC oversight of crypto, and the inclusion of digital assets in 401(k) plans—that seem disconnected from Bitcoin's core mission or that of other blockchain networks. Has the crypto sector lost its way?

Hendricks: It’s a recurring theme in the crypto industry—every few years, it seems to lose its focus over a new trend; enthusiasm peaks, some drop their original pursuits, and the space becomes crowded. This cycle often leads to disappointment for many as they feel things have devolved from their initial vision. This phenomenon is not unique to our time. The administration is facilitating the normalization of standard practices, and while dubious players may come and go, this cycle remains unchanged!