The Rollup
November 6, 2025

How Ethereum Will Integrate Into TradFi Infrastructure with Vivek Raman

Vivek Raman, a key figure in driving institutional crypto adoption, breaks down why this cycle is different, arguing that Ethereum’s deep integration into traditional finance (TradFi) infrastructure is making its adoption permanent and irreversible.

The First Inning of Institutional Adoption

  • "I'm kind of sick of cycles where we build some stuff, it's segregated from the world and it never gets integrated, and then it all collapses... We're not going to see a cycle this time... because the technology is actually being integrated into institutions, and once that happens, it can't get undone."
  • We are only in the "first inning" of institutional adoption. While the initial hype wave may be over, the slow, methodical process of large treasuries and asset managers accumulating and integrating Ethereum has just begun.
  • The narrative will be driven by data, not just hype. As on-chain firms begin releasing quarterly earnings reports, Wall Street analysts will be forced to initiate coverage, providing the traditional financial world with the language and metrics it understands.
  • The ultimate goal is to embed Ethereum into the "boring" back-office operations of banks and asset managers, upgrading legacy systems to create lasting, unbreakable ties between crypto and TradFi.

ETH as Digital Oil and Gold

  • "When you explain it to Wall Street, store of value plus cash flow plus productivity should be greater than store of value. So, while Bitcoin has a head start... [ETH] is a better store of value asset."
  • ETH’s investment thesis is twofold: it is both "digital gold" (a pristine store of value) and "digital oil" (the productive asset powering the entire digital economy). This dual nature makes it a superior long-term portfolio holding compared to Bitcoin.
  • Its value isn’t just tied to network activity. ETH is the foundational collateral and reserve asset for the ecosystem. While transaction fees will burn ETH and create value, its primary role is as a stable store of value for the trillions of dollars of assets that will eventually live on-chain.

The Pragmatic Path Forward

  • "You can't have any big sum of institutional money come on chain without the ability to have some privacy but also be compliant. It was impossible."
  • Compliant privacy is the final unlock for institutional capital. The maturation of Zero-Knowledge (ZK) technology is the answer, making the next bull run a potential "ZK cycle."
  • The real work involves integrating Ethereum engineering with TradFi engineering. This means focusing on unsexy but critical operational problems and moving beyond isolated smart contract development to build bridges to existing financial processes.

Key Takeaways:

  • This is a call to action for builders and investors to focus on pragmatic, long-term integration over short-term speculative cycles. The path to trillions in value lies in solving real-world problems for the world’s largest financial players.
  • ETH's Value is Foundational, Not Fickle. The core investment thesis is ETH as the digital economy's pristine collateral and store of value. Network revenue is just the icing on the cake.
  • The Real Work is Boring (and Bullish). The next phase of growth depends on integrating Ethereum into the mundane back-office operations of TradFi. This is the key to irreversible adoption.
  • Privacy is the Next Frontier. Compliant, ZK-powered privacy is the final gateway required to bring massive institutional capital on-chain.

Link: https://www.youtube.com/watch?v=ES21tg5Z63o

This episode unpacks the strategic roadmap for Ethereum's deep integration into traditional finance, revealing why the current market downturn is a temporary blip in a long-term institutional adoption cycle that cannot be undone.

Market Downturn vs. Institutional Readiness

  • Key Insight: The current market sentiment is decoupled from the tangible progress in institutional integration.
  • Vivek's Perspective: “Ethereum is going to do well, is going to do very well. It's not good this month unfortunately, but I still think that we're in a Goldilocks situation.”

The First Inning of Corporate Treasury Adoption

  • Strategic Implication: The accumulation of ETH by corporate treasuries is a nascent but powerful narrative. Investors should monitor the upcoming earnings reports from these pioneering firms, as they will serve as a crucial proof point and educational tool for the broader Wall Street community.

On-Chain Earnings: The Next Narrative Catalyst

  • Actionable Insight: The formalization of on-chain business reporting will bridge the gap between crypto-native activity and traditional financial analysis. Researchers should track the emergence of these reports as a leading indicator of deepening institutional engagement.

Overcoming Roadblocks: Privacy and ZK Technology

  • Vivek's Prediction: “I bet the next cycle is gonna be a ZK cycle.”
  • Strategic Focus: The development and adoption of ZK-powered privacy solutions is a direct prerequisite for onboarding institutional finance. Investors and researchers should closely monitor this sector for breakthrough applications in tokenization and decentralized finance (DeFi).

The "Practical Era": Integrating Ethereum into TradFi

  • Core Mission: “I'm kind of sick of cycles where like we build some stuff, it's segregated from the world and it never gets integrated and then it all collapses... our job is to accelerate and make sure that it gets integrated and can't get undone.”
  • Actionable Insight: The most durable value will be created by projects that solve real-world operational inefficiencies for traditional institutions. This focus on practical, "boring" integration is a key theme for identifying long-term, sustainable investments.

ETH's Dual Value Proposition: Digital Oil & Pristine Collateral

  • 1. The Fee-Burn Flywheel: As the ecosystem grows with thousands of rollups (Layer 2 scaling solutions that process transactions off-chain and post them back to Ethereum), on-chain activity will generate significant fees, burning ETH and creating deflationary pressure.
  • 2. The Primary Driver—Store of Value: More importantly, ETH's primary value comes from its role as the pristine store of value and collateral asset for the entire digital economy—“digital oil.” Its predictable issuance, yield, and function as the ecosystem's neutral reserve asset make it a superior store of value.
  • Investor Takeaway: ETH's valuation model should be a hybrid, accounting for both its utility-driven cash flows (via fee burn) and its monetary premium as the foundational collateral for the decentralized economy.

The Flippening: How ETH Overtakes Bitcoin

  • Key Trend to Watch: The gradual rebalancing of institutional crypto portfolios from Bitcoin-only to a significant Bitcoin-ETH mix is the primary mechanism that will drive the market caps closer over time.

Macro Outlook and Long-Term Conviction

  • Vivek's Outlook: “We haven't had a tailwind of falling rates and increase in liquidity. We're going to get that. I think [ETH is] going to fly.”

Conclusion

Ethereum's long-term value is being secured by its deep, irreversible integration into traditional finance's core plumbing. Investors should focus on key unlocks like ZK-powered privacy and on-chain corporate reporting, as these are the catalysts that will enable the next wave of institutional capital to flow into the ecosystem.

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