The crypto market is becoming more closely integrated with traditional finance in 2026. Stablecoins are moving into payments and settlement, institutional investors are increasing their exposure, and tokenized assets are gaining traction. At the same time, regulators and traditional exchanges are adapting as digital assets become more closely tied to the broader financial system.
We spoke with crypto investor and executive Vilhelm German about what is driving these changes and where the industry is heading next.
1. Stablecoins are becoming payment infrastructure
Stablecoins are no longer used mainly for trading. Their market capitalization crossed $315 billion in May 2026, and transfer volume surpassed $1.8 trillion in June alone, according to DeFiLlama.
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Businesses are now using them for cross-border settlement, treasury management, and dollar access in markets where local currencies are unstable.
According to the EY-Parthenon & Coinbase Survey, which surveyed 351 global institutional decision-makers, 85%–86% of institutional respondents use or are actively exploring stablecoins for internal treasury management, cross-border payments, and real-time trade settlement.
“Stablecoins are becoming part of how money moves globally,” said Vilhelm German. “The companies building serious infrastructure around this today will define how payments work for the next decade.”
German expects competition between stablecoins to increasingly come down to the quality of the underlying financial infrastructure — and how fast, cheaply and efficiently it can move money.
2. Institutional capital is reshaping market structure
Institutional capital is becoming one of the biggest changes in the digital asset market, as the industry shifts from retail speculation toward more regulated, institutional-grade infrastructure.
This year, asset management giants like BlackRock and Fidelity continued to expand their digital-asset operations.
JPMorgan Chase moved its settlement token, JPM Coin, onto Base, a layer-2 network. Traditional asset managers like Franklin Templeton and VanEck launched tokenized U.S. Treasury and other government debt products.
Surveys show roughly three-quarters of institutional investors plan to increase their crypto exposure in 2026, with a majority targeting allocations above 5% of assets under management.
“When pension funds and asset managers enter a market, the rules of the game change,” German stated. “Institutional investors bring higher expectations around risk management, custody, liquidity, governance and compliance. Volatility doesn’t disappear, but the market starts behaving like a mature asset class.”
3. RWA tokenization is moving into mainstream
In 2026, real-world asset (RWA) tokenization is moving beyond experimental pilots. Treasury bills, money market funds, and private credit are increasingly being issued and traded on-chain.
Total RWA assets under management (AUM) on public blockchains surpassed $38 billion this year, representing more than 270% growth from early 2025 levels.
Tokenization is no longer a proof of concept. Major asset managers are launching live products. However, the question now is whether tokenized assets can deliver genuinely better liquidity or simply put existing instruments on new rails.
“Bringing assets on-chain is only the starting line. The real power of tokenization lies in transforming static, slow-moving instruments into fully programmable, instant-settlement assets that trade seamlessly on a global scale,” German said.
4. Regulatory clarity is becoming a competitive edge
Regulation is increasingly becoming a competitive advantage in crypto. As the industry moves closer to traditional finance, institutional investors are placing more weight on compliance, transparency and risk controls.
In Europe, the MiCA framework came into full force this summer. The U.S. also moved toward greater regulatory clarity with the SEC introducing new frameworks for asset classification, disclosure and registration, although comprehensive legislation and the Clarity Act remain unresolved.
The EU’s MiCA framework has given issuers and institutions clear rules on licensing, reserves, and compliance. For crypto businesses, that clarity can influence where they operate, raise capital and serve institutional clients.
According to Vilhelm German, regulation is becoming increasingly important to the way crypto businesses compete.
“For crypto businesses, compliance is increasingly becoming a gateway to market access and a source of trust, rather than simply another cost.”
5. 24/7 markets are becoming a new benchmark
Crypto has made 24/7 trading normal, and traditional markets are starting to move in the same direction. Earlier this month, Nasdaq received approval for 23-hour-a-day, five-day-a-week trading, while the New York Stock Exchange (NYSE) is preparing for extended trading hours in 2026.
But longer trading hours may be only the first step. According to German, the bigger opportunity is to build financial markets that operate continuously on digital infrastructure.
“Tokenization can bring issuance, trading, settlement and custody into the same digital environment,” Vilhelm German noted. “Once assets are tokenized, smart contracts can automate many of the processes that today happen manually in the background.”
This could allow markets to operate around the clock, reduce settlement friction and automate complex back-office processes. As 24/7 access and programmability become more integrated into financial infrastructure, they could emerge as a new standard for financial markets.
Taken together, these trends show how crypto is moving deeper into the financial system, from payments and settlement to asset management and market infrastructure.
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