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Coinbase’s head of investment research, David Duong, said momentum from crypto exchange-traded funds, stablecoins, tokenization, and clearer rules is likely to build through 2026 and speed up wider use of digital assets.
“We expect these forces to compound in 2026 as ETF approval timelines compress,” he said. According to Duong, last year laid important groundwork by giving more regulated paths for investors and by pushing crypto tools closer to normal finance.
Duong pointed out that clearer rulebooks in the US and Europe are changing how big institutions handle crypto. The US has moved toward stablecoin oversight with the GENIUS Act, and Europe has pushed forward with MiCA.
Those moves are being used by firms to make operations ready for new products and to link crypto rails to payments and settlements. He said that better guardrails let firms design products that can be used by a broader set of clients.
Based on reports, crypto demand is no longer driven by a lone story or by only early adopters. Adoption figures have held steady, at 10% in Q1 2023 and close to 10% in Q1 2025, showing broad, steady interest across markets.
That mix of allocators and end users now includes corporate treasuries and long-term investors, which may reduce the rapid churn tied to short-term speculation. Some capital looks more strategic and may stay in place for longer.
Markets Respond With Capital
Meanwhile, reports indicate that global investment funds raised more than $48 billion through exchange-traded products (ETPs) related to digital currencies from January 2023 until December 2025—this is an increase from 2024.
Investment funds focused on Ethereum had almost three times the inflow during this time frame as compared to 2024.
The growth of stablecoins continues to be significant; their market capitalization is approximately $300 billion, but stablecoins still process trillions of dollars through full trading venues and DeFi.
Tokenized assets are smaller by comparison, with a market value above $1.2 billion, but analysts expect growth as institutions test blockchain-based ownership and fractional investing.
Tokenization And Corporate Use
Corporations have started to experiment with digital asset treasuries and tokenized collateral. Those are being tested for use in lending, settlement, and as part of corporate balance sheets.
Based on Duong’s view, tokenized collateral could be more widely accepted in traditional deals, and stablecoins might be used more in delivery-vs-payment setups. These practical uses are being watched closely by banks and custodians.
Outlook For 2026
Duong summed up his view by stressing three things: clear policy, operational readiness, and useful products. According to him, when regulators set clearer rules, institutions build safer systems, and companies design products people can actually use, crypto can move from a niche market toward a more central role in finance.
Featured image from Chainalysis, chart from TradingView
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“We expect these forces to compound in 2026 as ETF approval timelines compress,” he said. According to Duong, last year laid important groundwork by giving more regulated paths for investors and by pushing crypto tools closer to normal finance.
Regulatory Steps Spur Institutional Moves
Duong pointed out that clearer rulebooks in the US and Europe are changing how big institutions handle crypto. The US has moved toward stablecoin oversight with the GENIUS Act, and Europe has pushed forward with MiCA.
Those moves are being used by firms to make operations ready for new products and to link crypto rails to payments and settlements. He said that better guardrails let firms design products that can be used by a broader set of clients.
Investor Base Shifts Away From Single Narratives
Based on reports, crypto demand is no longer driven by a lone story or by only early adopters. Adoption figures have held steady, at 10% in Q1 2023 and close to 10% in Q1 2025, showing broad, steady interest across markets.
That mix of allocators and end users now includes corporate treasuries and long-term investors, which may reduce the rapid churn tied to short-term speculation. Some capital looks more strategic and may stay in place for longer.
Markets Respond With Capital
Meanwhile, reports indicate that global investment funds raised more than $48 billion through exchange-traded products (ETPs) related to digital currencies from January 2023 until December 2025—this is an increase from 2024.
Investment funds focused on Ethereum had almost three times the inflow during this time frame as compared to 2024.
The growth of stablecoins continues to be significant; their market capitalization is approximately $300 billion, but stablecoins still process trillions of dollars through full trading venues and DeFi.
Tokenized assets are smaller by comparison, with a market value above $1.2 billion, but analysts expect growth as institutions test blockchain-based ownership and fractional investing.
Tokenization And Corporate Use
Corporations have started to experiment with digital asset treasuries and tokenized collateral. Those are being tested for use in lending, settlement, and as part of corporate balance sheets.
Based on Duong’s view, tokenized collateral could be more widely accepted in traditional deals, and stablecoins might be used more in delivery-vs-payment setups. These practical uses are being watched closely by banks and custodians.
Outlook For 2026
Duong summed up his view by stressing three things: clear policy, operational readiness, and useful products. According to him, when regulators set clearer rules, institutions build safer systems, and companies design products people can actually use, crypto can move from a niche market toward a more central role in finance.
Featured image from Chainalysis, chart from TradingView
Continue reading...