Capital Market Transformation 2026: Tokenization and Industry Leadership Shaping a New 24/7 Trading Era

2026 marks a pivotal moment for the global capital markets. Industry leaders like David Mercer of LMAX Group have emphasized that 2026 is a turning point where the 24/7 operating capital markets shift from theory to structural reality. Meanwhile, Andy Baehr of CoinDesk Indices views this year as the “second year” for crypto— a period when regulatory foundations built in 2025 will lead to more mature and measured growth.

This momentum is driven by accelerated tokenization adoption, clearer regulatory policies, and institutional willingness to integrate digital assets into their portfolio strategies. With Bitcoin (BTC) currently trading at $88.27K and Ethereum (ETH) at $2.96K, despite declines of 1.09% and 1.87% over the past 24 hours, the market still demonstrates significant long-term growth potential.

From Legacy Systems to Sustainable Markets: How Tokenization Is Transforming Capital Efficiency

The current capital market infrastructure still rests on a century-old premise: price discovery through limited access, batch settlements, and inactive collateral. Tokenization is breaking this model by enabling settlement within seconds, not days, and making collateral fully fungible.

The implication is a radical transformation in liquidity management. Institutions now must position assets days in advance and face T+2 or T+1 settlement cycles that lock up capital. When markets operate 24/7 with real-time settlement, portfolio rebalancing becomes continuous. Weekend differences disappear—markets do not close; they rebalance.

The ripple effect on liquidity is dramatic. Tokenized stablecoins and money market funds act as connective tissue between previously separate asset classes, enabling instant transfers. Order books deepen, volume increases, and the velocity of digital and fiat money circulation accelerates as settlement risks diminish.

Projections for tokenized asset growth reflect this potential. Market participants estimate the tokenized asset market will reach $18.9 trillion by 2033, representing a compound annual growth rate (CAGR) of 53%. However, Mercer believes the actual potential is much larger: up to 80% of global assets could be tokenized by 2040, following the S-curve growth pattern experienced by transformative technologies like mobile phones and commercial aviation.

Global Adoption and Regulatory Breakthroughs: Momentum in 2026 Worldwide

The regulatory landscape is rapidly evolving beyond the US market. South Korea has lifted its nine-year ban on corporate crypto investment, now allowing public companies to hold up to 5% of their equity capital in crypto assets—limited to major tokens like Bitcoin and Ethereum. This move opens significant institutional access in Southeast Asia.

In the US, Interactive Brokers—a giant in electronic trading—has launched a feature allowing clients to deposit USDC instantly, 24/7, to fund brokerage accounts. Support for RLUSD (Ripple) and PYUSD (PayPal) is in preparation, creating seamless stablecoin onboarding infrastructure between traditional trading and the digital ecosystem.

However, regulatory challenges remain significant. The CLARITY Act faces hurdles in the US Senate, with controversy over stablecoin incentives creating friction points between traditional bank issuers and non-bank entities. Coinbase and other industry players have expressed concerns that a crucial part of the regulatory framework is stalled in the Senate Banking Committee. Compromises will be necessary to advance this legislation.

In the UK, the parliamentary budget of the Labour Party is pushing for a ban on cryptocurrency donations to political parties, citing concerns over foreign interference in elections. These regulatory dynamics show that while technology adoption accelerates, policy frameworks are still developing asymmetrically across jurisdictions.

User adoption is also increasing. Ethereum has recorded significant growth in the number of new addresses interacting with the network for the first time, indicating expanding participation beyond sophisticated investors.

Institutional Strategies: Building Capacity for a Never-Ending Market

For institutions, 2026 marks a year of operational readiness becoming a strategic imperative. Risk, treasury, and settlement operations teams must transform from discrete batch cycles to continuous processes. This requires:

• Real-time collateral management: Systems capable of managing margins and collateral instantly, not in daily cycles.
• Real-time compliance: AML/KYC integrated with 24/7 payment systems.
• Digital custody integration: Collaborations with regulated custody providers to facilitate digital asset storage.
• Stablecoin acceptance: Incorporating stablecoins as a seamless, functional settlement pathway, equivalent to traditional wire transfers.

Foundational infrastructure is already emerging. The SEC has approved the Depository Trust & Clearing Corporation (DTCC) to develop a securities tokenization program recording ownership of stocks, ETFs, and bonds on blockchain. This is a strong regulatory signal that blockchain integration into the secondary capital markets is taken seriously by tier-1 regulators.

Regulated custodians and credit intermediation solutions have moved from proof-of-concept to production. Institutions beginning to build operational capacity for a sustainable market will be well-positioned to move quickly once regulatory frameworks become transparent and uniform.

Those who fail to prepare operational infrastructure by 2026 may become structurally left behind—they will lack access to the liquidity flows and efficiencies available to ready participants.

Bitcoin and Gold Market Landscape: New Signals for 2026 Asset Allocation

One of the most intriguing market developments in 2026 is the changing correlation between Bitcoin and gold. While gold hits new all-time highs, the 30-day rolling correlation of Bitcoin has turned positive for the first time this year last week, reaching 0.40.

This shift is meaningful. Historically, Bitcoin and gold move inversely—Bitcoin seen as a growth asset, gold as a safe-haven. When both are positively correlated, it could indicate two scenarios: either institutional investment in alternative assets is growing simultaneously, or Bitcoin is increasingly accepted as a stable store of value like gold.

However, Bitcoin remains technically weak. BTC failed to reclaim the 50-week EMA after a 1.09% decline in the last 24 hours, held at $88.27K, well below the last week’s ATH of $126.08K. Ethereum experienced greater pressure, down 1.87% to $2.96K.

A critical question for tracking: will the ongoing gold rally provide medium-term support for Bitcoin, or will persistent BTC price weakness confirm a decoupling from traditional safe-haven assets? The answer will shape the asset allocation narrative for 2026.

Legislative Challenges and Growth Strategies: Path to Institutional Adoption

Andy Baehr of CoinDesk Indices identifies three critical challenges crypto must overcome in 2026 to avoid the “sophomore slump”:

Legislative and Regulatory: The CLARITY Act faces a difficult road ahead. Stablecoin incentives controversy complicates an already complex schedule. Smart compromises and small points of overlooked detail will be needed to advance this vital framework. Further regulatory certainty remains crucial before full-scale tokenization deployment.

Meaningful Distribution Channels: The most fundamental challenge in crypto remains building distribution channels beyond self-directed traders. Until crypto can reach retail, mass affluent, high-net-worth, and institutional segments with the same incentives for allocation as traditional asset classes, institutional adoption will not translate into institutional performance. Financial products must be sold to be used at scale.

Focus on Asset Quality: The relative performance of CoinDesk 20 versus CoinDesk 80 last year shows that high-quality, large-cap digital assets will continue to dominate allocations. The top twenty names—currencies, smart contract platforms, DeFi protocols, infrastructure—offer enough diversification and themes without overwhelming institutional investors’ cognitive load.

Markets are always evolving toward greater access and lower friction. Tokenization is the next iteration in the evolution of capital markets. For institutions, 2026 is not a year to watch from the sidelines. It’s a year to build, prepare, and position to capitalize on the structural transformation that will define the next decade.