ETFs, stablecoins set stage for next wave of crypto adoption in 2026

Coinbase’s David Duong says ETFs, regulated stablecoins and tokenized assets will compound in 2026, turning today’s regulatory clarity into real-world crypto adoption.

Exchange-traded funds, stablecoins and tokenization will drive accelerated cryptocurrency adoption in 2026 as regulatory clarity enables deeper institutional participation, according to Coinbase’s head of investment research David Duong.

ETFs heading into the new year

In a year-end outlook, Duong stated that 2025 marked a turning point for the digital asset sector, with regulated spot ETFs opening access for broader investor participation, corporate crypto treasuries gaining traction, and stablecoins and tokenized assets becoming more embedded in traditional financial workflows.

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

Data from analytics platform Demand Sage shows global crypto adoption fluctuating within a narrow range over the past two years, from 10.3% in the first quarter of 2023 to 9.9% in the first quarter of 2025. Duong characterized this steadiness as reflecting market maturity rather than stagnation, according to the report.

Regulatory developments in major jurisdictions during 2025 have reshaped how institutions evaluate risk and deploy capital in digital assets, the report stated. In the United States, lawmakers advanced stablecoin legislation through the GENIUS Act, providing a framework for dollar-pegged tokens and payment use cases. In Europe, the Markets in Crypto-Assets regulation has brought greater consistency to licensing and compliance across member states.

“The practical consequence is real operational readiness,” Duong stated, pointing to policy guardrails that allow firms to build products, scale infrastructure and integrate crypto systems into payments and settlement operations.

Duong noted that crypto markets are no longer driven by a single narrative or dominated by early adopters. A broader mix of institutions, allocators and end-users now shapes market flows, tying crypto exposure to macroeconomic conditions, technological progress and geopolitical developments, according to the report.

“Demand no longer hinges on a single story,” Duong said, adding that crypto is increasingly viewed through a long-term strategic lens as it becomes part of mainstream financial architecture.

Last month, Coinbase announced an agreement to acquire The Clearing Company as part of plans to scale prediction markets and advance its stated ambition of becoming an “Everything Exchange.” The company also filed lawsuits against the US states of Michigan, Illinois and Connecticut over regulatory authority for prediction markets in the United States.