Vertalo CEO Dave Hendricks Discusses Stablecoins, RWAs, and the Evolving Crypto Landscape

Summary:
In this article, Dave Hendricks, founder and CEO of Vertalo, shares insights on the evolution of stablecoins, Real-World Assets (RWAs), and the state of the crypto industry. He discusses the significant changes since early 2023, the role of stablecoins in providing access to the crypto market, and the emerging trends for tokenization.

Key Takeaways

Stablecoins have become a central topic in crypto, especially after recent regulatory developments.
The market for Real-World Assets (RWAs) is growing but remains limited in accessibility for many investors.
Vertalo is uniquely positioned as a software company focused on tokenization without acting as a broker-dealer.
Renewed focus on tokenizing private equity is shaping future trends in asset management.
The crypto industry experiences cycles of excitement and disillusionment, driven by various external influences.

Vertalo CEO Dave Hendricks Discusses Stablecoins, RWAs, and the Evolving Crypto Landscape - 1

The Progress of Stablecoins and Tokenization

As stablecoins take center stage in regulatory discussions, the advancement of tokenization is paving the way for traditional assets to be integrated onto the blockchain. Dave Hendricks, the founder and CEO of Vertalo, has dedicated years to building this infrastructure. With an entrepreneurial background that includes successful ventures like LiveIntent and CheetahMail, as well as experience with Oracle and Arthur Andersen, Hendricks is leading efforts to modernize asset transfer and tokenization for real-world assets at scale.

In this Q&A, he provides clarity on crypto policy, explains why stablecoins emerged as a pivotal element for institutional entry into crypto by 2025, and details the requirements for tokenized securities and private assets to evolve.

The Evolution of RWAs and Stablecoins

Question: When we first spoke in 2023, you mentioned PayPal's launch of a new stablecoin on the Ethereum blockchain. Fast forward to this month, and Visa has introduced a stablecoin advisory. What is your perspective on the progress made regarding RWAs, tokenized securities, and stablecoins?

Hendricks: We've made significant strides since early 2023. Three years ago, discussions around stablecoins primarily focused on their use in decentralized finance (DeFi) during lending and borrowing. Now, stablecoins have emerged as a crucial issue, especially following developments like the Genius Act, which restrict banks from earning interest on stablecoins.

While the sector of RWAs is developing, it still constitutes a minor segment of the potential market. There's considerable activity in two categories: Institutional and Marginal.

Institutional assets lead the charge but are mostly limited to federated and private-permissioned arrangements, making them inaccessible to many potential investors, such as Registered Investment Advisors (RIAs) or individual individuals. Conversely, some Marginal RWAs are available to anyone familiar with digital wallets, though these may not be advisable for investors seeking principal protection or stable returns.

Tokenized equities are expected to gain more attention in 2026, particularly with regulatory changes like the SEC's Clarity Act. However, stablecoins are at the forefront in 2025 as they simplify entry into the crypto sector for large institutions, including banks. While banks are now focusing on deposits and transactions, they face restrictions on issuing yield-bearing stablecoins, contradicting the expectations many had regarding the Genius Act as beneficial for banks and their advocates.

Vertalo's Position in the Market

Question: Vertalo maintains a store of ETH for covering tokenized share ledger creation fees on Ethereum. What changes have taken place in the company over the past year?

Hendricks: As one of the very few software companies dedicated to digital transfer agency and integrated tokenization, Vertalo takes a distinct approach compared to other so-called tokenization firms. We do not act as a broker-dealer or produce our own financial instruments—instead, we work exclusively for our clients. This focus has led to a surge in interest from clients who prefer to avoid working with firms that engage in trading against them. Clients approach us with unique challenges that other platforms and consulting firms cannot address. When clients collaborate with Vertalo, they can trust that as a software provider, we do not subtract from their fees by taking a percentage of every transaction.

Our commitment to this model has remained unchanged since we shifted our focus to Enterprise Software in mid-2022.

Future Trends to Watch

Question: What current trends are you excited about as we approach 2026?

Hendricks: The most exciting trend is a resurgence in the interest around tokenizing and packaging private equity. As a firm dedicated to transforming illiquid investments into tradeable and transferable (and fractional) instruments, we're encouraged that the market is starting to recognize what we've seen for nearly a decade: that Distributed Ledger Technology represents a revolutionary step forward for managing assets and wealth, specifically for the transfer and distribution of these innovative financial products.

The State of the Crypto Industry

Question: This year, we've seen various crypto-related announcements from the White House—a federal Bitcoin reserve that didn’t gain traction, the end of SEC oversight, and the inclusion of digital assets in 401(k) plans. Are these developments veering away from the core principles of Bitcoin or blockchain networks? Has the sector lost its way?

Hendricks: In cycles that occur every couple of years, the 'crypto' community tends to get swept up in a new trend, abandoning existing projects, with some people incurring losses while others voice frustrations about the changes in the industry. This pattern is cyclical, and this situation is no exception. The administration is attempting to normalize standard practices, while unsavory players will continue to rise and fall. Nothing fundamentally changes!