CRYPTO 101 Ep. 689: Tokenization & How Institutions are Looking at Altcoins

Guest: Jim Hiltner, Superstate Chief Business Officer & Co-founder
Hosts: Bryce Paul & Brendan Viehman
Date: November 7, 2025

Episode Overview

This episode provides a timely, in-depth exploration of tokenization in crypto, the evolving role of institutions in the digital asset space, and the current landscape for altcoins. Jim Hiltner from Superstate—a leader in tokenizing financial assets—returns to the show amidst high volatility in crypto markets and macroeconomic uncertainty. Together with hosts Bryce Paul and Brendan Viehman, Hiltner discusses the convergence of TradFi and crypto, recent regulatory and market developments, and how Superstate’s products are helping bridge traditional assets with decentralized platforms.

Key Discussion Points & Insights

1. Current Market Volatility and Macro Backdrop

• Bitcoin's Slip Below 100k (00:27): Hosts react to Bitcoin dropping below a key threshold, reflecting on recent price history and the market’s turbulence.
• Institutional Shifts in Sentiment (02:16): Hiltner and hosts discuss major public figures (Larry Fink, President Trump) endorsing tokenization and US leadership in crypto.
  • Quote (Bryce, 02:16): “There’s a psyche shift at the highest echelons of finance and politics. People really globbing onto crypto.”
• Macroeconomic Environment (13:17): Hiltner breaks down the Fed’s recent rate-cut campaign, M2 money supply, gold’s breakout, and liquidity’s impact on prices.
  • Quote (Jim Hiltner, 13:17): “If you look at it from two perspectives—a top-down macro view and a bottoms-up fundamental view—it’s kind of two different stories.”
• Market Uncertainty & Geopolitics (17:29): The crew explores the impact of US-China trade tensions, tariffs, and government shutdown-induced data blackouts on crypto assets.
  • Quote (Bryce, 17:29): “That trade war stuff… kicked things off in crypto to the downside… everyone’s like ‘sell it all.’”

2. Structural Flows, Institutional Participation & Altcoins

• What’s Driving the Majors (BTC, ETH, SOL) vs. Altcoins (26:07):
  • Institutions stick to well-known assets mentioned in major media; stablecoins have reached $300 billion, largely on top chains (ETH, SOL).
  • DeFi TVL remains below highs, and meaningful flows into newer altcoins haven’t materialized.
  • Quote (Jim Hiltner, 26:07): “The majors moved because of institutional flows… every single day on CNBC they say bitcoin, they say Ethereum, they say Solana… that’s where a lot of the activity is.”
  • For most institutions: “It’s pretty easy to say, ‘I’m going to write a $20 million check to Bitcoin versus a hedge fund—until that (altcoin) space matures.”
• Altcoin Market Pains & Risk Management (29:05):
  • Bryce commiserates with altcoin traders about recent underperformance and the importance of stop losses, noting how, at times, liquidity has dried up and stops were missed.
  • Quote (Bryce, 29:05): “It feels like we’re just in the middle of a rinse… always darkest before the dawn.”

3. Superstate's Institution-Focused Tokenization Products

• USTB Fund:
  • A short-duration T-bill fund, tokenized, allowing for “24/7 interest accrual” and instant redemptions.
  • Institutional-grade, bankruptcy-remote, and regulated (SEC-compliant).
  • Quote (Jim Hiltner, 32:56): “You can get 24/7 interest… For people that want to earn interest on the weekend, park your cash into USTB and then take it out on Monday—you’ve earned 48 hours of interest.”
• USCC Fund:
  • A “carry” fund that is market-neutral, using long spot/short futures strategies across BTC, ETH, SOL, XRP—yielding ~13%.
  • Tokenized shares can be posted as collateral in lending protocols (e.g., Aave), used for borrowing/leverage in DeFi, and staked to augment yield.
  • Provides operational and financial improvements; seamless minting and redemption in stablecoins or fiat.
  • Quote (Jim Hiltner, 32:56): “On the carry fund… we’re basically trading basis… long spot, short future… You capture the delta between those two, which turns into yield for investors.”
• Real-World Integration:
  • The intersection of traditional products (USTB, USCC) and DeFi protocols is Superstate’s “secret sauce.”
  • Enabling securities as collateral in major DeFi protocols—bridges old and new finance.
  • Quote (Jim Hiltner, 32:56): “Tokenization to me is the stablecoin moment for finance… taking what exists off-chain, making it move around the internet 24/7.”

4. Opening Bell: Tokenizing Public Equities

• Product Vision:
  • Allows public companies to issue actual shares directly on blockchains like Solana and Ethereum, not just synthetics.
  • Enables 24/7 trading, self-custody, and composability (borrowing, lending, LPing, etc.) with real equities inside wallets like Metamask or Phantom.
  • Quote (Jim Hiltner, 10:44): “We launched Opening Bell back in May… helping publicly traded companies bring their equity on Solana or Ethereum so you and I… can actually use them in systems on-chain…”

5. Tokenization's Transformative Potential for TradFi

• Why BlackRock & Others Care (43:59):
  • Operational efficiency, instant settlement, 24/7/365 action without human back-office delays; fundamental to “re-architecting” asset management.
  • Parallels drawn to the leap from mutual funds to ETFs: tokenization will overhaul the plumbing of finance.
  • Quote (Jim Hiltner, 44:28): “Tokenization is going to… automate the financial workflows… take what exists off-chain and make it move 24/7, 365… that’s the superpower of blockchains.”
• The Three Phases of Real Adoption:
  1. Issuance: Legitimate companies and providers launch tokenized products on-chain.
  2. Integration: Growing connectivity and utility in DeFi protocols and platforms.
  3. Capital Formation: Unleashing new models of fundraising, investment, and participation across asset classes.
  • Quote (Jim Hiltner, 46:40): “There’s a three-stage journey to this—the first stage is issuance… the second is integration… third is capital formation…”

6. The Crypto Revolution: Lost, Won, or Evolving?

• Hosts reflect on the bank-driven “co-opting” of crypto, but Hiltner argues tokenization empowers self-custody and user choice—still very much in the revolutionary spirit.
• Quote (Jim Hiltner, 53:02): “There’s a world where both exist… and one thing people don’t appreciate about tokenization is it kind of sticks it to the banks.”
• Tokenized equities let users direct assets themselves and access opportunities otherwise gated by legacy brokers.

7. Future Outlook: Lower Rates & Tokenization Growth

• Fed/Dovish Policy Impact (54:50):
  • USTB: Lower rates will modestly reduce yields but not AUM; T-bills remain the mainstay for stablecoin reserves and fund cash.
  • USCC: Lower rates may trigger more volatility/yield in basis trades (“spreads may blow out” if crypto rallies), offering greater opportunity for market-neutral strategies.
  • Quote (Jim Hiltner, 54:50): “On the carry fund… if the Fed lowers rates and you see bitcoin rip to 250k, you’ll see spreads… blow out to 20, 30%—especially in the perps market.”

Notable Quotes / Memorable Moments

• “We’re not actively trading except for the PA over here. I take a long view on everything… It’s quite an exciting time in the markets, whether it’s on the crypto side, macro side, or what’s happening in tokenization.”
  —Jim Hiltner (01:25)
• “Tokenization to me is the stablecoin moment for finance… it makes a dollar more interesting as a stablecoin than it is in your bank account.”
  —Jim Hiltner (36:37)
• “Tokenized equities give people power: You’re not stuck with only what your brokerage lets you do. You can choose to lend, LP, or collateralize—24/7, 365.”
  —Jim Hiltner (51:00–53:02)
• “Pessimists sound smart, but the optimists make the money.”
  —Bryce Paul (56:31)

Timestamps for Important Segments

• Market volatility and macro context: 00:27–03:28
• Jim’s background & Defi journey: 03:28–07:03
• Tokenization and Superstate’s funds overview: 32:56–38:28
• Institutional flows and altcoin market discussion: 26:07–29:05
• Opening Bell & tokenizing public equities: 10:44; 42:38–43:59
• TradFi transformation via tokenization: 43:59–46:40
• The revolution’s state & self-custody: 51:00–54:16
• Rate cuts and fund strategy outlook: 54:50–56:31

Final Thoughts

This episode is a comprehensive tour of how tokenization is poised to reshape the bridge between traditional and digital finance. With real institutional adoption ramping up and novel products like tokenized money market and equities funds reaching meaningful scale, the panel lays out both the challenges and profound potential of a tokenized future. Whether you’re an altcoin trader, DeFi enthusiast, or TradFi observer, the insights from Jim Hiltner and the CRYPTO 101 team offer a vivid snapshot of crypto’s evolving landscape at a critical inflection point.

Find more on Superstate at superstate.com
Follow Jim Hiltner: @hiltnergy on X/Twitter