Crypto adoption is expected to accelerate sharply in 2026 as the forces that shaped the market in 2025 continue to strengthen, according to Coinbase’s head of investment research, David Duong. Factors such as clearer regulation, the rapid growth of crypto exchange-traded funds (ETFs), expanding use of stablecoins, and real-world tokenization are increasingly positioning crypto as a core part of the global financial system rather than a niche asset class.
Duong shared these insights in a year-end recap, noting that the past year marked a turning point for institutional and mainstream engagement with digital assets. What once depended on a single growth narrative has evolved into a more mature ecosystem shaped by macroeconomic trends, technology advances, and geopolitical shifts.
ETFs, Stablecoins, and Tokenization Drive Crypto’s Next Growth Phase
One of the most significant developments in 2025 was the rise of spot crypto ETFs, which provided regulated and familiar access points for investors. These products helped lower barriers to entry and encouraged broader participation from institutions and traditional allocators. At the same time, digital asset treasuries began appearing on corporate balance sheets, signaling growing confidence in crypto as a long-term strategic asset.
Stablecoins and tokenization also moved deeper into everyday financial workflows. According to Duong, stablecoins are increasingly being used in delivery-versus-payment (DvP) structures, while tokenized assets are gaining recognition as acceptable collateral in traditional transactions. As ETF approval timelines shorten and tokenized collateral becomes more widely accepted, these trends are expected to reinforce one another in 2026, accelerating adoption across markets.
Despite market cycles, global crypto adoption has remained steady over the past few years. This consistency suggests that crypto usage is becoming more resilient and less dependent on hype-driven phases, laying the groundwork for sustained long-term growth.
Regulation and Institutional Readiness Shape the Future of Crypto
Clearer regulatory frameworks played a crucial role in crypto’s evolution during 2025. In the United States, policymakers shifted focus toward stablecoin oversight and market structure clarity through initiatives such as the GENIUS Act. Meanwhile, Europe strengthened its regulatory stance by consolidating the Markets in Crypto-Assets (MiCA) framework, giving businesses and institutions more certainty around compliance and risk management.
Duong emphasized that the real impact of regulation is operational readiness. Clear rules allow companies to innovate responsibly, mature their products, and embed crypto infrastructure into payments, settlements, and broader financial systems. This regulatory clarity is helping crypto transition from an experimental asset class into an emerging pillar of global market infrastructure.
Another major shift is the changing investor base. Crypto markets are no longer dominated by early adopters. Instead, a diverse mix of institutions, allocators, and end users is shaping demand. This broader participation means crypto demand is now driven by long-term strategic thinking rather than short-term speculation.
As policy clarity, institutional infrastructure, and user adoption continue to converge, Duong believes crypto is becoming part of the financial core. If the industry delivers secure, user-focused products alongside responsible regulatory stewardship, the next wave of crypto innovation could reach a truly global audience in 2026 and beyond.
