The surge of RWAs, AI and tokenized equities, with Galaxy and Ondo
Speakers
Summary
- The "Agentic Economy" is the next major driver for DeFi; AI agents will manage personal finance (hedging, yield farming) better than humans, requiring 24/7 liquid, on-chain assets.
- Yield is the "organizing principle" of this cycle, replacing speculative token flipping. Institutional capital is flowing specifically into vault structures (Morpho, Pendle, Ethena).
- RWA Perps are evolving to allow tokenized equities/treasuries as collateral, doubling capital efficiency compared to current models that require stablecoin collateral.
- Market Outlook: Expect a "slow bleed" in crypto prices (BTC potentially touching high $40ks) followed by a sharp rebound to ATH by year-end. Institutions currently favor Gold over Bitcoin as a store of value due to volatility.
Trade Ideas
Bitcoin is experiencing a "slow bleed" due to a lack of immediate catalysts, but the fundamental 4-year cycle remains intact. Matt predicts a potential drawdown to the "high 40s" ($49k) before a rapid recovery. The current market is washing out leverage and weak hands. Once sellers are exhausted, the rebound to ATH will likely happen faster than expected (by year-end) because the macro setup (institutional adoption) is stronger than in previous cycles. LONG (Accumulate on dips). If the "slow bleed" persists longer than expected, retail capitulation could deepen the drawdown.
Institutions are currently gravitating toward Gold rather than Bitcoin as a safe haven. Bitcoin's market cap is still too small to act as a stable store of value comparable to Gold. Until volatility decreases and market cap grows, institutional flows during uncertainty will favor the traditional metal. LONG. A sudden "risk-on" shift in macro sentiment could see capital rotate back into high-beta assets like Crypto.
"This cycle isn't going to be about speculative token flipping. It's about yield as the organizing principle." Institutions (Coinbase, Bitwise) are deploying capital specifically through vault structures. As speculative retail interest cools, value accrues to protocols that generate real revenue and distribute it via vaults. The infrastructure (ERC-4626) is now mature enough to stack yields (lend + stake + restake) in a single unit of capital. LONG. Focus on protocols enabling yield stripping and fixed rates. Smart contract risk from stacking multiple protocols (composability risk).
Matt explicitly states, "I wake up every morning... and I want to short Optimism," but notes it is trading below its "10/10 lows." While the fundamental sentiment on generic L2 governance tokens is extremely bearish, the asset is already so beaten down that the risk/reward for a *new* short position is poor. It is a "crowded short" at these levels. WATCH (Neutral bias due to oversold conditions). A broad market rally could trigger a short squeeze on beaten-down beta like OP.
Hyperliquid has massive volume, but Matt critiques its capital inefficiency (requires stablecoin collateral, forcing market makers to fragment liquidity). While currently the dominant perp DEX, Hyperliquid faces a structural threat from next-gen RWA perp platforms (like Ondo) that offer better capital efficiency for market makers. WATCH. Monitor if liquidity migrates to RWA-backed perp venues. Hyperliquid's network effect and user experience are currently superior to new entrants.
Matt Blumberg
Head of DeFi at Ondo Finance
Ondo is launching RWA perps where tokenized assets (equities/treasuries) serve as collateral. This removes the need to hold cash at a TradFi broker *and* stablecoins on a crypto exchange to hedge. Current perp DEXs (like Hyperliquid) are capital inefficient because they require stablecoin collateral. By allowing RWA collateral, Ondo doubles capital efficiency. Furthermore, AI agents will naturally route flow to venues with the best market structure and efficiency. LONG. Ondo is positioning itself as the infrastructure layer for both institutional capital efficiency and AI agent trading. Regulatory hurdles for tokenized equities; competition from established perp DEXs.
Up Next
This The Block video, published February 24, 2026, features Matt Blumberg, Michael Marcantonio discussing BTC, GOLD, LIDO, ENA, PENDLE, OP, HYPE, ONDO. 6 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Matt Blumberg, Michael Marcantonio · Tickers: BTC, GOLD, LIDO, ENA, PENDLE, OP, HYPE, ONDO