Corporations’ and institutions’ interest in the adoption of digital assets is rising, propelled by the maturation of the market and a continuous demand for innovation in financial infrastructure. Further, investors’ focus has been on gaining access to this asset class through familiar instruments such as exchange-traded funds (ETFs). Moreover, digital asset regulation is evolving, establishing a foundation for wider adoption and innovation. This regulatory evolution has provided companies with the essential clarity and is encouraging innovative solutions that shift the ecosystem from theoretical concepts to practical applications. It also provides investors with access to emerging markets and opportunities that may not be readily available through traditional investment channels. Each sector is discovering its unique applications for blockchain adoption. However, the common benefits revolve around enhancing transparency, reducing risk, improving capital efficiency, and introducing new levels of programmability.
Digital assets engagement across the industry cohorts
Asset and Wealth Management (AWM) firms have actively engaged in digital assets, primarily through direct cryptocurrency ownership, indirect investments via funds, and equity interests in companies dedicated to digital assets. The excitement surrounding digital assets has expanded to encompass investments in blockchain technology, as asset managers pursue opportunities for tokenization. Additionally, AWM service providers are also participating by delivering custody, trading, and infrastructure support. Wealth managers are at a pivotal moment in the changing landscape of financial services, where increasing client demand for digital assets is transforming the conventional advisory relationship. Digital assets signify a fundamental shift that wealth managers are striving to fully understand.
Investors interest continues to grow across new products, decentralized finance (DeFi), stablecoins, and tokenized assets. The launch of exchange-traded products (ETPs) for Bitcoin, Ethereum, and other offerings has broadened market engagement. Approximately 73% of investors plan to grow their allocations to digital assets in 2026, citing enhanced regulatory clarity, confidence in compliance frameworks, expanded accessibility to regulated vehicles (ETPs, funds), and improved institutional-grade infrastructure (custody, settlement, risk management). While regulated products such as spot crypto and ETFs/ETPs have become the default entry point for most investors, stablecoins and tokenization facilitate scalable, risk-conscious participation while improving traditional market structures. Around 64% of asset managers intend to tokenize their assets (up from 40% in 2025), while 63% of investors are keen on investing in tokenized assets due to the need for faster trading and near-instant settlement. Over 60% of investors also anticipate that tokenization will have a substantial impact on market structure.
The rising stars in the digital assets market
Among digital assets, stablecoins, tokenization, and fractional ownership stand out as areas with the strongest growth potential because they directly address major challenges of accessibility, efficiency, and stability.
Stablecoins: Digital currencies designed to maintain a stable value by being pegged to traditional currencies like the USD, have become one of the fastest-growing segments in the digital assets market. By leveraging blockchain technology, stablecoins enable cross-border transactions at internet speed and minimal cost, thereby removing inefficiencies that plague conventional systems and infrastructure. On a societal level, stablecoins have broadened access to financial services for underbanked and underserved populations through DeFi, while offering novel investment opportunities to a wide range of clients. The passage of the GENIUS Act by the U.S. Congress [1] has led to a major influx of institutional capital into the industry. Stablecoins witnessed a significant breakthrough in 2025, as their outstanding supply reached $300 billion with monthly transaction volumes averaging $1.1 trillion during the six-month period ending November 2025. This momentum is expected to continue in 2026, with higher stablecoin volumes benefiting blockchains recording these transactions (e.g., ETH [2] , TRX [3] & others) as well as the supporting infrastructure (e.g., LINK [4] ) and DeFi applications.
Tokenization and Fractional Ownership: Tokenization is poised to establish new markets and unlock trillions in value. Defined as the process by which any type of asset (whether tangible or intangible) is issued or transformed into a digital format and subsequently stored and transferred via blockchain, tokenization can facilitate the opening of various alternative investment markets. It enables segmentation of both mainstream and alternative assets into smaller units, allowing investors to access hedge funds, private credit, private equity, and alternative investments more easily with lower minimum thresholds. By converting loans and credit facilities into digital tokens, platforms can provide fractional ownership of assets that were previously indivisible, thereby democratizing access to institutional-grade investments. Furthermore, tokenization improves liquidity in markets that are typically illiquid by allowing for the secondary trading of credit assets on digital exchanges.
The Future of digital assets in AWM: The year 2026 could mark a meaningful shift in how digital assets are viewed and used within the broader financial system, as they move from experimentation to becoming more established, supported by clearer regulations in key markets and growing participation from financial institutions. At the same time, blockchain technology is no longer limited to pilot projects and is increasingly being used for functions such as payments, settlement, and liquidity management. A notable trend is the rise of asset tokenization which is enabling traditional/alternative investments, easier to trade with improved transparency, and thus open access to a wider set of investors. Similarly, stablecoins are helping in enabling faster and more efficient cross-border transactions at lower costs. Alongside this, there is a gradual blending of traditional finance and newer decentralized models, as institutions begin to incorporate these technologies into their existing systems. For the asset and wealth management industry, these developments are likely to bring steady but important changes. Tokenization could allow firms to offer more flexible investment options and reach a broader client base. Improved infrastructure may also help reduce costs and speed up processes such as trade settlement. At the same time, firms will need to strengthen their approach to areas like risk management, custody, and regulatory compliance. Overall, digital assets are expected to become a more routine part of how portfolios are built and managed.
[1] On July 17, 2025
[2] Ethereum
[3] Tronix
[4] Chainlink
The rising stars in the digital assets market
The Future of digital assets in AWM: The year 2026 could mark a meaningful shift in how digital assets are viewed and used within the broader financial system, as they move from experimentation to becoming more established, supported by clearer regulations in key markets and growing participation from financial institutions. At the same time, blockchain technology is no longer limited to pilot projects and is increasingly being used for functions such as payments, settlement, and liquidity management. A notable trend is the rise of asset tokenization which is enabling traditional/alternative investments, easier to trade with improved transparency, and thus open access to a wider set of investors. Similarly, stablecoins are helping in enabling faster and more efficient cross-border transactions at lower costs. Alongside this, there is a gradual blending of traditional finance and newer decentralized models, as institutions begin to incorporate these technologies into their existing systems. For the asset and wealth management industry, these developments are likely to bring steady but important changes. Tokenization could allow firms to offer more flexible investment options and reach a broader client base. Improved infrastructure may also help reduce costs and speed up processes such as trade settlement. At the same time, firms will need to strengthen their approach to areas like risk management, custody, and regulatory compliance. Overall, digital assets are expected to become a more routine part of how portfolios are built and managed.
Appendix
- Why digital asset adoption is accelerating | Goldman Sachs
- The Rise of Digital Assets: Why HNW Investors Are Turning to Crypto
- Digital assets in asset wealth management industry: PwC
- Growing enthusiasm and adoption of digital assets | EY – U.S
- Embracing Change of Digital Assets on the Wealth Management Industry - Alpha FMC
- Growing enthusiasm propels digital assets into the mainstream
- Volatility Drives Discipline, Not Retreat
- 2026 Digital Asset Outlook: Dawn of the Institutional Era | Grayscale
