Digital Asset forecasts 2026 institutional crypto shift

Digital Asset has set out forecasts for how institutional use of blockchain and crypto markets could develop in 2026, with a focus on privacy, regulation, stablecoins and the shift of more financial activity on-chain.

Kelly Mathieson, Chief Business Development Officer at Digital Asset, linked the next stage of adoption to changes in market structure and regulatory expectations. Digital Asset built the Canton Network, a blockchain network aimed at financial institutions.

Privacy focus

Mathieson described privacy as a central requirement as decentralised finance and traditional finance converge. She drew a distinction between confidentiality and anonymity, and argued that market participants and regulators require different levels of visibility.

"We will look back on 2025 as a tipping point. This was the year that more crypto-native players began to recognise just how vital privacy is as DeFi and TradFi continue to converge. The conversation around privacy in the crypto space has never felt more urgent or nuanced. Privacy is not the idea that nobody gets to know anything - that's anonymity - but rather about sharing information on a need-to-know basis."

"If we want firms to use stablecoins for treasury operations or trading desks to execute strategies on-chain, we can't have every move publicly visible in real time. Exposing sensitive flows risks undermining competitive positioning and revealing internal decision-making before teams are ready to communicate it. At the same time, regulators still need selective visibility into network data to uphold market integrity. Striking the balance of protecting confidentiality while enabling lawful oversight is the central challenge."

"As more institutions explore on-chain settlement, privacy has become a non-negotiable rather than a nice-to-have. Looking ahead, the projects that will gain real traction are those that treat privacy as a core design principle, not bolted on later. These are the platforms that will earn institutional trust and ultimately define how the next phase of crypto adoption unfolds," said Kelly Mathieson, Chief Business Development Officer, Digital Asset.

Her comments come as market operators and infrastructure providers debate how to handle transaction confidentiality in distributed systems. Public blockchains have traditionally exposed transaction details in ways that raise compliance and competitive concerns for large financial firms. Market participants have increasingly explored approaches that limit what other participants can see, while maintaining auditability.

Regulatory direction

Mathieson also pointed to regulatory activity in several jurisdictions as a factor shaping institutional participation. She argued that the emphasis will shift from consumer access to clearer conditions for institutional activity.

"Regulations in 2026 won't just be about enhancing retail investor access to cryptocurrencies, but enabling institutions to operate on-chain with clarity and confidence. The UK, Japan and Brazil have all announced updated regulations for 2026 - an important step in aligning major markets on digital assets."

"The real challenge ahead will be the shift from fragmentation to consistency. Global frameworks must differentiate between speculative assets and the blockchain infrastructures that safely support real-world financial markets. This recalibration will open the door for banks to participate more meaningfully in on-chain markets and unlock the benefits of 24/7 synchronised finance," said Mathieson.

Policy makers and supervisors have taken different approaches to crypto markets in recent years, which has created uncertainty for firms operating across borders. Financial institutions often require consistent treatment of custody, settlement finality, reporting, and market conduct rules before expanding activity. Industry groups have also raised concerns about overlapping requirements for the same activity across multiple frameworks.

Stablecoin use

Mathieson forecast broader routine use of stablecoins in institutional settings such as payments and treasury functions. She framed the shift as driven by uptake and by regulation rather than speculative interest.

"The GENIUS Act has accelerated global momentum on stablecoins to give institutions the clarity they need to adopt them responsibly. This shift isn't being driven by hype - the proof is in real institutional adoption. The conversation in 2026 won't be about whether stablecoins should be used, but how to use them."

"As regulatory frameworks mature, we expect stablecoins, and other digital assets, to be used routinely in payments, settlements and treasury operations. Their value lies in solving real-world problems including liquidity and cost that traditional rails simply can't support," said Mathieson.

Banks and payment firms have increasingly examined stablecoins as a settlement instrument alongside existing real-time payments schemes. Corporate treasury teams have also reviewed their potential use in cross-border transfers and intra-group flows, although risk management frameworks vary by jurisdiction and by issuer model.

On-chain operations

Mathieson said institutional activity has moved from limited trials to more regular operational usage in 2025. She cited settlement, round-the-clock operations, and operational efficiency as factors driving firms' adoption of on-chain systems.

"As 2025 draws to a close, institutional finance has reached a defining moment in its relationship with blockchain. What was once an experiment outside of general operations has now become a strategic imperative. This year, major asset managers, banks and trading firms began enacting real financial activity on-chain for its operational efficiency, settlement ability and round-the-clock operations that traditional rails can't match."

"The shift has been gradual but decisive. On-chain settlements proved their resilience during numerous real-world deployments, and stablecoin usage for cross-border flows quietly became standard practice among forward-thinking institutions. Yet the transition isn't without requirements. Institutions are demanding robust governance frameworks, predictable regulatory environments and infrastructure that delivers efficiency gains whilst maintaining the privacy necessary for their operations."

"As 2026 sees institutional adoption snowball, on-chain systems will continue to be integrated into everyday operations. It is up to the industry to keep pace with this transition and provide the opportunity to deploy these systems at scale," said Mathieson.

The next year will test whether market infrastructure providers can align privacy controls, governance arrangements and regulatory reporting in a way that satisfies both institutions and supervisors, as more firms expand beyond pilot programmes into production activity.