Ethereum Called “Digital Oil” by Wall Street Exec, Ready to Dominate the Financial World?

Jakarta, Pintu News – Ethereum (ETH) is back in the spotlight after a sharp statement from Vivek Raman, a former Wall Street banker now co-founder of Etherealize, a startup focused on expanding institutional adoption of Ethereum.

During the Accelerate 2025 conference, Vivek mentioned that Ethereum can potentially become the “digital oil” of the global financial system. He stated that as the crypto ecosystem grows, it will not only be desirable-but necessary-for institutions to hold ETH as a strategic asset.

In its vision, Ethereum will become the global foundation for transactions, just like oil has been the foundation of various industries.

Why is Ethereum called “Digital Oil”?

According to Vivek, Ethereum plays a crucial role in driving the entire crypto ecosystem, similar to how oil drove the world’s industrial sector for over a century.

ETH is used to send transactions, run smart contracts, and fuel the entire Ethereum network. With these fundamental functions, he calls Ethereum “digital oil”-a neutral asset that can connect different types of tokenized assets in the future.

Unlike Bitcoin (BTC), which is often dubbed “digital gold” due to its limited supply (maximum 21 million coins), Ethereum has unique economic dynamics. While it has no fixed supply limit, its issuance rate is capped at a maximum of 1.5% per year and some ETH is burned through transaction fees, which makes its supply tend to decrease.

Read also: Financial Markets Broken? Solana Executive: ‘Blockchain is the solution, not universal basic income!

World Asset Tokenization: Ethereum Ready to Be the Foundation

Tokenization-the process of bringing real-world assets like stocks and bonds onto the blockchain-is predicted to be a major trend for financial institutions in the next few years. With more and more assets being represented on-chain, Ethereum could be a top choice due to its stability, flexibility, and scalability.

Some large institutions have already started this process. For example, BlackRock and Franklin Templeton have launched tokenized financial products on top of the Ethereum network. Meanwhile, crypto exchanges like Kraken have also started using alternative blockchains like Solana (SOL). However, Vivek believes Ethereum will remain the backbone for a neutral and global tokenization system.

Also read: This Crypto Investor Turned $7,600 into $1.4 Million from Memecoin $MOONPIG!

ETH vs Oil: Similarities and Differences

While the “digital oil” analogy sounds interesting, Vivek and Danny Ryan-the co-founder of Etherealize and former Ethereum Foundation researcher-acknowledge that there is a big difference between ETH and oil.

Oil supply is elastic-it can be increased when demand rises. In contrast, Ethereum has a fixed annual issuance limit, and due to the burning mechanism, could even become a deflationary asset.

In addition, ETH can provide yield through staking, with an estimated return of around 3% per year, unlike oil which does not produce any yield. This means that Ethereum is not only used for blockchain operations, but can also be a productive asset for its owners.

Ethereum a Global Strategic Asset?

According to Vivek, as the world moves towards massive tokenization, there will be a need for a neutral asset that can bridge all networks and parties. In this scenario, Ethereum (ETH) has the potential to become the “reserve currency” of the crypto world due to its nature of not being tied to any particular country or institution.

He mentioned that ETH could become the main trading partner in the future for various digital assets issued by different institutions. In other words, if the whole world tokenizes its assets, ETH will be the main link between all those ecosystems. And in Etherealize’s vision, this is the strategic value of Ethereum that many traditional institutions have yet to realize.

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Reference:

• Decrypt. Wall Street Gets Ethereum’s ‘Digital Oil’, Says Etherealize Co-Founder Vivek Raman. Accessed May 26, 2025
• Featured Image: Bitcoinist