FOUNDATIONAL TECHNOLOGY

ETH

The native cryptocurrency of the Ethereum blockchain, Ether (ETH) is used to pay for transactions and execute smart contracts. As the second-largest digital asset by market cap, ETH is also a yield-bearing instrument via staking.

EXAMPLE

Franklin Templeton deployed its tokenized money market fund on Ethereum, using ETH to settle transactions across the network.

Related Terms

Blockchain

A distributed, immutable ledger that records transactions across a network of computers in cryptographically linked blocks, providing a shared and tamper-resistant source of truth across multiple parties.

Example

By settling trades on blockchain, two counterparties share an identical, real-time record without requiring a central reconciliation agent.

Digital Asset Balance Sheet Strategy

The deliberate integration of digital assets—native crypto, stablecoins, tokenized instruments, or DeFi yield—into a financial institution’s treasury, investment, or lending portfolios as part of a formal capital allocation framework.

Example

MicroStrategy's bitcoin treasury strategy sparked a broader conversation about how bank holding companies could hold digital assets on their own balance sheets under existing accounting rules.

Cryptocurrency

A digital asset designed to function as a medium of exchange, using cryptography to secure transactions and control creation of new units. Unlike tokenized deposits or stablecoins, cryptocurrencies typically have variable market prices and are not pegged to fiat.

Example

Banks evaluating custody services distinguish between cryptocurrency holdings (volatile BTC, ETH) and stablecoin balances (USDC, USDT) given their different risk and regulatory profiles.

Public Blockchain

A permissionless blockchain network where anyone can read, write, and participate in consensus without requiring approval from a central authority. Bitcoin and Ethereum are the two largest public blockchains.

Example

While J.P. Morgan initially favored permissioned chains, the firm is now bridging its Kinexys platform to public Ethereum to access deeper liquidity pools for tokenized assets.