The capital markets of 2026 will be open year-round: The full-scale launch of the 24-hour tokenized economy

As pointed out in CoinDesk’s institutional investor newsletter “Crypto Long & Short” weekly analysis, 2026 is highly likely to be a fundamental turning point in the structure of financial markets. Of particular note is the shift of capital markets from the concept of “business hours” that has lasted over 100 years to a “24/7” operation. This is not merely an extension of trading hours but signifies a complete overhaul of the industry, including settlement cycles, capital efficiency, and regulatory frameworks.

Settlement Revolution: From Days to Seconds, Institutional Operations Under Scrutiny

Currently, institutional investors must go through complex onboarding processes when entering new asset classes. From pre-allocating assets to setting collateral, it takes at least 5–7 days. Furthermore, being bound by settlement cycles like T+2 or T+1 places a burden on the entire system.

Tokenization aims to radically change this structure. If settlements can be completed in seconds instead of days, and collateral can be substituted, institutional investors will be able to continuously reallocate their portfolios. David Mercer, CEO of LMAX Group, notes that this change will make “equities, bonds, and digital assets interchangeable components of a single, always-on capital allocation strategy.” In other words, markets will be rebalanced year-round, and the very concept of weekends will disappear.

Tokenized Assets to Reach $18.9 Trillion by 2033: Growth Forecast for 24/7 Markets

Market participants predict that the tokenized asset market will reach $18.9 trillion by 2033. Mercer assesses the compound annual growth rate (CAGR) of 53% as not an overhyped speculation but a “moderate forecast.” Considering the evolution of electronic trading and algorithmic execution over the past 30 years, this growth curve is logical.

Interestingly, if this growth follows an S-curve, up to 80% of global assets could be tokenized by 2040. Reflecting on the adoption patterns of mobile phones and air travel, one can understand how a 50% annual compound growth rate can rapidly transform the market.

Secondary Effects of 24/7 Operations on Liquidity

The liquidity freed by tokenization will have significant secondary effects on market structure. Capital previously constrained by traditional settlement cycles will flood into the market, with stablecoins and tokenized money market funds becoming nodes connecting different asset classes.

Immediate transfers across previously segmented markets will become possible, deepening order books, increasing trading volume, and reducing settlement risks. Whether in dollar-based or digital currency-based settlements, turnover rates will accelerate. Interactive Brokers (IBKR) launching a 24/7 USDC deposit feature is an example of this trend.

2026 Crypto Market: Transition Year from Growth to Specialization

Andy Behar of CoinDesk Indices calls 2025 “the year of new entrants in crypto assets” and positions 2026 as the “second year.” Now that foundational knowledge has been acquired and the environment is familiar, it is time to focus on building, growth, and specialization.

Lessons from the Q4 2025 market correction are many. Due to panic selling, Bitcoin fell below $80,000, and Ethereum dropped near $1,500. However, to avoid this “second-year slump,” the industry must make correct decisions on several key points.

Legislation and regulation: Progress on the CLARITY Act is urgent. While debates over stablecoin rewards complicate discussions, it is crucial to find compromises without getting bogged down in details.

Building distribution channels: Until reaching retail, mass affluent, high-net-worth, and institutional investors with incentives similar to other asset classes, full institutional adoption cannot be expected. The principle that “products are used because they are sold” remains true in the crypto market.

Improving asset quality: The fact that CoinDesk 20 (top 20 by market cap) significantly outperforms CoinDesk 80 (mid-cap) indicates that larger, higher-quality digital assets will continue to lead the market.

Reversal of Correlation Between Bitcoin and Gold: Indicating Market Structural Changes

A noteworthy phenomenon is occurring. While gold hits new all-time highs, Bitcoin’s 30-day rolling correlation has turned positive for the first time at 0.40. Despite this, Bitcoin remains technically weak, declining 1% weekly and failing to recover the 50-week moving average.

The focus now is whether the sustained upward trend in gold will mid-term lift Bitcoin or whether Bitcoin’s price weakness will confirm a decoupling from traditional safe assets. This change in correlation may reflect a significant shift in market psychology, not just a technical indicator.

NFT Strategy Seen in Pudgy Penguins: Evolution Toward Consumer Brands

Structural changes are also underway in the NFT market. Pudgy Penguins has emerged as one of the strongest NFT community brands in this cycle. Its strategy is shifting from speculative “digital luxury goods” to a diversified consumer IP platform.

The project first acquires users through mainstream channels (toys, retail partnerships, viral media), then advances onboarding to Web3 via games, NFTs, and PENGU tokens. Its current ecosystem spans physical-digital products (retail sales exceeding $13 million and over 1 million units sold), gaming and experiences (Pudgy Party surpassed 500,000 downloads in two weeks), and widely distributed tokens (airdrops to over 6 million wallets).

As the market currently assigns a higher premium to Pudgy compared to traditional IP peers, sustained success depends on expanding retail, adopting gaming, and executing deeper token utility.

Regulatory Infrastructure as the Key to 2026

For institutional investors to operate in a 24/7 market, a dramatic overhaul of operational frameworks is urgent. Risk management, finance, and settlement teams must shift from batch processing to continuous processes. This includes 24-hour collateral management, real-time AML/KYC, integration of digital custody, and acceptance of stablecoins as functional settlement means.

Regulatory developments are also underway. The U.S. Securities and Exchange Commission (SEC) approving the development of a securities tokenization program by DTCC (Depository Trust and Clearing Corporation) to record ownership of stocks, ETFs, and government bonds on blockchain indicates regulators are seriously considering this paradigm shift.

Meanwhile, South Korea has lifted a nine-year ban on corporate crypto investments, and UK lawmakers are considering banning political donations via cryptocurrencies citing foreign interference concerns. As different regulatory approaches unfold globally, standardization and interoperability of infrastructure will be critical issues in 2026.

Conclusion: Adapting to 24/7 Operations as a Condition for Survival

Markets have always evolved toward broader access and lower friction. Tokenization is the next step. By 2026, the question will no longer be whether markets operate 24/7 but whether your institution can adapt to it. Institutions capable of continuously managing liquidity and risk will gain flows that others cannot structurally match. Those unable to adapt are likely to be excluded from this new paradigm.

The crypto industry will enter a true “second season” in 2026. The shift from growth to specialization and from speculation to practicality will accelerate. Preparing for a 24/7 market is no longer optional; it is an essential strategy for institutional investors.