Cryptocurrency adoption may be entering a new phase in 2026, shaped less by hype and more by infrastructure, regulation, and real-world use. According to David Duong, head of investment research at Coinbase, a combination of exchange-traded funds (ETFs), regulated stablecoins, and tokenized assets is laying the groundwork for broader and more durable growth across the crypto sector.
In a year-end outlook, Duong described 2025 as a pivotal year for digital assets. Regulatory clarity improved across major markets, while financial products once considered experimental began to move into the mainstream. The result, he said, is a market better positioned for institutional participation and everyday use.
ETFs open the door to wider participation
One of the most significant shifts has been the rise of regulated spot crypto ETFs. These products have expanded access to digital assets, particularly for institutional investors and individuals who prefer traditional investment vehicles.
Duong noted that ETF approval timelines are expected to shorten in 2026, making it easier for new products to reach the market. As these funds become more common, they could help normalize crypto exposure within diversified portfolios and reduce friction for investors who have stayed on the sidelines.
Stablecoins and tokenization move into core finance
Stablecoins are also playing a growing role, especially in payment and settlement systems. Duong pointed to their increasing use in delivery-versus-payment structures, where assets and payments are exchanged simultaneously to reduce risk. As regulatory frameworks mature, stablecoins are becoming more integrated into existing financial workflows rather than operating at the margins.
Tokenization is following a similar path. By representing traditional assets as digital tokens, firms can improve efficiency in areas such as collateral management and settlement. Duong said tokenized collateral is gaining broader recognition across traditional transactions, a trend he expects to accelerate next year.
Adoption steadies as the market matures
While these developments suggest progress, headline adoption figures have remained relatively stable. Data from analytics firm Demand Sage shows global crypto adoption hovering between 10.3% in early 2023 and 9.9% in early 2025.
Duong described this plateau not as a sign of slowing interest, but as evidence of a maturing market. Instead of rapid swings driven by speculation, crypto participation is becoming more consistent and tied to practical use cases.
Regulation reshapes institutional confidence
Clearer rules have played a central role in this transition. In the United States, lawmakers advanced stablecoin legislation through the GENIUS Act, establishing a framework for dollar-pegged tokens and payment-related uses. In Europe, the Markets in Crypto-Assets regulation has brought more uniform licensing and compliance standards across member states.
According to Duong, these developments have real operational impact. With policy guardrails in place, firms can build products, scale infrastructure, and integrate crypto into payment and settlement systems with greater confidence.
A broader set of market drivers
Duong also emphasized that crypto markets are no longer driven by a single storyline or dominated by early adopters. Today, a wider mix of institutions, asset allocators, and end-users influence market activity. Crypto exposure is increasingly shaped by macroeconomic trends, technological advances, and geopolitical factors.
As a result, digital assets are being viewed through a longer-term, strategic lens, gradually becoming part of mainstream financial architecture rather than a separate or speculative niche.
Coinbase itself is positioning for this shift. The company recently announced plans to acquire The Clearing Company as it expands into prediction markets and works toward its goal of becoming an “Everything Exchange.” It has also challenged regulatory authority in several US states over prediction markets, signaling its intent to play a larger role in shaping the industry’s future.
Looking ahead to 2026
Taken together, ETFs, stablecoins, and tokenized assets suggest that the next chapter of crypto adoption will be built on utility and integration, not just innovation. If regulatory clarity continues and institutions follow through on deployment, 2026 could mark a year when crypto moves further from experimentation into everyday financial use.
For the industry, that shift may prove more important than any single price cycle.
