Vertalo CEO Dave Hendricks Discusses Stablecoins, Tokenized Assets, and the Crypto Industry’s Chaos

As the landscape of stablecoins and tokenization rapidly evolves, Dave Hendricks, founder and CEO of Vertalo, sheds light on these developments. He discusses the growth in regulation, the current state of real-world assets (RWAs), and where the crypto industry is headed. This article outlines Hendricks' insights on stablecoins, tokenization, and the challenges and opportunities faced in the crypto space.

Key Takeaways

Stablecoins and Regulation: Stablecoins have become a central topic in crypto discussions, especially following regulatory developments and the Genius Act, which restricts banks from offering interest on stablecoin deposits.
Real-World Assets (RWAs): While RWAs are making progress, they still represent a small part of the total market. Most current activity involves institutional usage that isn't accessible to most individual investors.
Vertalo's Unique Position: Vertalo stands out in the market by focusing purely on digital transfer and tokenization without acting as a broker-dealer, ensuring no conflict of interest.
Market Trends: Hendricks is optimistic about the growing interest in tokenizing private equity and sees significant potential in how Distributed Ledger Technology can transform asset management.
Industry Sentiment: Hendricks notes that the crypto industry cycles through periods of excitement and chaos, often diverting focus from core blockchain principles.

Vertalo CEO Dave Hendricks on stablecoins, RWAs, and how the crypto industry 'loses its collective mind' - 1

The Current Landscape of Stablecoins and RWAs

The Evolution of RWAs and Stablecoins

When we last interviewed you in 2023, you provided insight on PayPal’s rollout of a new stablecoin on the Ethereum blockchain. Fast-forward to this month, and Visa is also stepping into the stablecoin arena with advisory services. How do you see the progress made in areas like RWAs, stablecoins, and tokenized securities?

Hendricks: Indeed, we have made significant strides since early 2023. Three years ago, discussions about stablecoins mainly revolved around their use in decentralized finance (DeFi) for borrowing and lending. However, the focus has shifted significantly. Now, stablecoins have become a major concern in the crypto world, particularly due to the Genius Act, which prevents banks from paying interest on stablecoin holdings.

While RWAs have improved, they still represent a minor portion of the broader market. There's substantial activity in the Institutional category (Treasuries and private permissioned REPOs) and the Marginal segment (Layer 1 blockchains issuing tokens without underlying collateral).

Institutional RWAs lead the way but remain primarily federated and private, which means they are not widely accessible to the average investor. On the other hand, Marginal RWAs can be accessed by anyone familiar with cryptocurrency wallets, yet they may not be suitable for those seeking safe returns or principal protection.

Looking toward the future, tokenized equities are set to emerge as more significant players by 2026, largely due to expected clarity brought by the SEC. However, stablecoins have taken the focus in 2025, serving as the most straightforward entry point for large financial institutions into the crypto realm. With banks concentrating on deposits and payments, their interest in stablecoins is understandable, even as they find themselves unable to offer yield-bearing options due to the Genius Act — an ironic twist for those who perceived that legislation as beneficial for financial institutions.

Vertalo’s Approach and Changes Over the Year

What Has Changed for Vertalo in the Past Year?

Vertalo holds a reserve of ETH to cover fees associated with creating tokenized share ledgers on Ethereum. What transformations has your firm experienced over the last year?

Hendricks: Vertalo distinguishes itself as one of the few genuine software companies focused specifically on digital transfer agency and tokenization. We have adopted a distinct approach compared to many other firms in the tokenization space. Because we do not operate as a broker-dealer and do not produce our investment instruments, we have seen a considerable uptick in interest from clients who prefer to work with a company that won’t compete with them.

Clients typically approach Vertalo with specific challenges that third-party platforms often cannot solve. By working with us, they can trust that, as a software provider, we are not reducing their profits by taking a percentage on their transactions. We have maintained this commitment to our enterprise software focus since mid-2022.

Trends to Watch in 2026

What Trends Are You Excited About as 2026 Approaches?

Hendricks: A particularly interesting trend is the revived interest in tokenizing and packaging private equity. Our firm primarily focuses on converting illiquid investments into tradeable, transferable, and fractional instruments. It is encouraging to see that the market is beginning to recognize, as we have for nearly a decade, that Distributed Ledger Technology represents a substantial improvement for asset and wealth management, particularly in the distribution of novel financial instruments.

The Future of Crypto Regulation

Are Recent Crypto Developments Indicating a Loss of Direction?

This year, several crypto-related announcements from the White House—including a federal Bitcoin reserve that failed to progress, an end to SEC oversight, and the inclusion of digital assets in 401(k)s—appear disconnected from Bitcoin's core mission and blockchain technology. Has the crypto industry lost its direction?

Hendricks: The crypto industry tends to lose focus every few years, often overreacting to new developments. During these periods, many individuals abandon their original paths, entering rushes that can lead to chaos, financial losses, and discontent as they compare today’s environment to when they first started. This pattern is consistent across cycles, and it’s nothing new at this point. Current administration efforts aim to normalize everyday functions, while less reputable players will continue to emerge and disappear.