Coinbase’s head of funding analysis, David Duong, stated momentum from crypto exchange-traded funds, stablecoins, tokenization, and clearer guidelines are prone to construct by means of 2026 and velocity up wider use of digital property.
“We anticipate these forces to compound in 2026 as ETF approval timelines compress,” he said. In response to Duong, final yr laid vital groundwork by offering extra regulated paths for traders and by pushing crypto instruments nearer to regular finance.
— David Duong🛡️ (@DavidDuong) December 31, 2025
Regulatory Steps Spur Institutional Strikes
Duong identified that clearer rulebooks within the US and Europe are altering how huge establishments deal with crypto. The US has moved in the direction of stablecoin oversight with the GENIUS Act, and Europe has pushed ahead with MiCA.
These strikes are being utilized by companies to make operations prepared for brand spanking new merchandise and to hyperlink crypto rails to funds and settlements. He stated that higher guardrails let companies design merchandise that can be utilized by a broader set of purchasers.
Investor Base Shifts Away From Single Narratives
Primarily based on experiences, crypto demand is now not pushed by a lone story or by solely early adopters. Adoption figures have held regular, at 10% in Q1 2023 and near 10% in Q1 2025, exhibiting broad, regular curiosity throughout markets.
That blend of allocators and finish customers now contains company treasuries and long-term traders, which can cut back the fast churn tied to short-term hypothesis. Some capital seems to be extra strategic and should keep in place for longer.
Markets Reply With Capital
In the meantime, experiences point out that global funding funds raised greater than $48 billion by means of exchange-traded merchandise (ETPs) associated to digital currencies from January 2023 till December 2025—this is a rise from 2024.
Funding funds centered on Ethereum had virtually 3 times the influx throughout this timeframe as in comparison with 2024.
The expansion of stablecoins continues to be important; their market capitalization is roughly $300 billion, however stablecoins nonetheless course of trillions of {dollars} by means of full buying and selling venues and DeFi.
Tokenized property are smaller by comparability, with a market worth above $1.2 billion, however analysts anticipate progress as establishments check blockchain-based possession and fractional investing.
Tokenization And Company Use
Firms have began to experiment with digital asset treasuries and tokenized collateral. These are being examined to be used in lending, settlement, and as a part of company steadiness sheets.
Primarily based on Duong’s view, tokenized collateral could possibly be extra broadly accepted in conventional offers, and stablecoins could possibly be used extra in delivery-vs-payment setups. These sensible makes use of are being watched carefully by banks and custodians.
Outlook For 2026
Duong summed up his view by stressing three issues: clear coverage, operational readiness, and helpful merchandise. In response to him, when regulators set clearer guidelines, establishments construct safer techniques, and firms design merchandise individuals can really use, crypto can transfer from a distinct segment market to a extra central function in finance.
Featured picture from Chainalysis, chart from TradingView
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