Crypto forces to compound in 2026, accelerating adoption: Coinbase

Momentum from crypto exchange-traded funds, stablecoins, tokenization, along with clearer regulations, is set to compound in 2026, accelerating crypto adoption, according to Coinbases head of investment research, David Duong.

In a year-end wrap-up posted to X on Wednesday, Duong said 2025 saw spot exchange-traded funds create regulated access to crypto, digital asset treasuries emerge as new corporate balance-sheet vehicles, and tokenization and stablecoins moving deeper into core financial workflows.

“We expect these forces to compound in 2026 as ETF approval timelines compress, stablecoins take a larger role in delivery-vs-payment (DvP) structures, and tokenized collateral is recognized more broadly across traditional transactions,” he said.

Source: David Duong

Global crypto adoption has been steady over the last few years, ranging from 10.3% in Q1 2023 to 9.9% in Q1 2025, according to analytics platform Demand Sage.

Regulation key to next phase of institutional adoption

Clearer global frameworks were a key development in 2025, driving cryptos transformation from a niche market to an emerging pillar of global market infrastructure, and changing how institutions approach strategy, risk, and compliance, Duong said.

The US has pivoted toward stablecoin oversight and market-structure clarity with the GENIUS Act, while Europe consolidated its Markets in Crypto-Assets regulation, better known as MiCA.

“The practical consequence is real operational readiness: better policy guardrails that enable product innovation, market maturation, and the embedding of crypto rails into payments and settlements. This is the foundation on which the next phase of institutional adoption is being built,” Duong said.

He added that “policy clarity, institutional architecture, and broader participation are converging to make crypto part of the financial core,” and if the industry delivers quality products, regulatory stewardship, and user‑centric design, “we can help ensure that the next wave of innovation reaches everyone, everywhere, all the time.”

Crypto demand no longer tied to single narrative

Unlike the early days of crypto, the investor base has also become far more diverse and is no longer dominated by early adopters, with a broader cross‑section of allocators and end‑users reshaping overall demand, resulting in an important market shift, said Duong.

“Demand no longer hinges on a single narrative; it reflects the interplay of macroeconomics, technology, and geopolitics, and it is increasingly anchored to a long‑term, strategic thesis informed by cryptos increasing integration into mainstream finance,” he said.

“Eventually, we think that shift will support more persistent capital and less purely speculative churn.”