Former Grayscale executive Celisa Morin notes a growing interest among traditional financial institutions in tokenizing assets on public blockchains. In an interview with Cointelegraph, Morin, who previously served as Vice President of Platform Distribution at Grayscale, suggests that a shift in narrative, led by BlackRock among traditional finance (TradFi) institutions, may prompt more firms to tokenize assets on public blockchains rather than private ones.

Morin, now heading the crypto department at international law firm Reed Smith, observes that larger traditional financial institutions could follow BlackRock's lead. BlackRock recently launched a $100 million tokenized fund called 'BUIDL' on the Ethereum network. Despite some controversy surrounding BlackRock's move, including transactions from dubious sources, Morin believes many firms may emulate BlackRock's decisions.

She highlights Franklin Templeton's forward-thinking initiative to launch a tokenized money market fund on the Ethereum layer-2 network Polygon last year. Franklin Templeton's Franklin OnChain U.S. Government Money Fund (FOBXX) has seen significant success, with a total of $360.2 million in U.S. Treasurys tokenized across various products.

However, Morin expresses skepticism regarding the approval of spot Ether exchange-traded funds (ETFs) in May. Drawing from her experience with Grayscale's Bitcoin ETF, Morin suggests that the lack of communication from the U.S. Securities and Exchange Commission (SEC) to prospective fund issuers indicates a slim chance of approval by VanEck's deadline on May 23rd.