2026: The Inflection Point for 24/7 Tokenized Capital Markets

Source: CryptoNewsNet Original Title: Crypto Long & Short: 2026 Marks the Inflection Point for 24/7 Capital Markets Original Link:

Expert Insights

2026 Marks the Inflection Point for 24/7 Capital Markets

By David Mercer, CEO, LMAX Group

Capital markets still operate on a century-old premise: access-driven price discovery, batch settlement and collateral that sits idle. That premise is breaking down. As tokenisation accelerates and settlement cycles compress from days to seconds, 2026 will mark the inflection point where continuous markets shift from theoretical to structural.

The predictions alone imply that this is inevitable, yet vary in their ambition. By 2033, market players have projected tokenised asset market growth to surge to $18.9 trillion. This represents a significant compound annual growth rate (CAGR) of 53%. This isn’t speculative and is modest in my view—but it’s a logical milestone following three decades of efforts to reduce friction in capital markets, from electronic trading and algorithmic execution to real-time settlement. I believe, however, that once the first domino falls, there is the potential for 80% of the world’s assets to be tokenised by 2040. S-curves don’t merely compound at 50% per annum—think mobile phones or air travel.

What changes in a 24/7 market isn’t just trading hours. It’s capital efficiency. Today, institutions pre-position assets days in advance. Moving into a new asset class requires onboarding plus collateral positioning and can take five to seven days at minimum. Settlement risk and pre-funding requirements lock capital into T+2 and T+1 cycles, creating drag across the entire system.

Tokenization removes that drag. When collateral becomes fungible and settlement happens in seconds rather than days, institutions can reallocate portfolios continuously. Equities, bonds and digital assets become interchangeable components of a single, always-on capital allocation strategy. The weekend distinction disappears. Markets don’t close, they rebalance.

This has second-order effects on liquidity. Capital trapped in legacy settlement cycles gets unlocked. Stablecoins and tokenised money-market funds become the connective tissue between asset classes, enabling instant movement across previously siloed markets; order books deepen, trading volumes rise and the velocity of both digitised and fiat money accelerates as settlement risk falls away.

For institutions, 2026 is the year operational readiness becomes urgent. Risk, treasury and settlement operations teams must shift from discrete batch cycles to continuous processes. That means round-the-clock collateral management, real-time AML/KYC, digital custody integration and acceptance of stablecoins as functional and fluid settlement rails. Institutions that can manage liquidity and risk continuously will capture flows others structurally cannot.

The infrastructure is already forming with regulated custodians and credit intermediation solutions moving from proof-of-concept to production. The approval by the SEC to grant the Depository Trust & Clearing Corporation (DTCC) approval to develop a securities tokenisation program that records ownership of stocks, ETFs and treasuries on the blockchain signals that regulators are contemplating this fusion seriously. Further regulatory clarity remains essential before full-scale deployment, but institutions that begin building operational capacity for continuous markets will now be well-positioned to move quickly when frameworks solidify.

Markets have always evolved toward greater access and lower friction. Tokenisation is the next step. By 2026, the question won’t be whether markets operate 24/7, but whether your institution is able to. If you can’t, then you may not be part of this new paradigm.

Headlines of the Week

By Francisco Rodrigues

While the U.S. and U.K. hit regulatory roadblocks over the past week, global adoption has been accelerating as South Korea unlocked corporate treasuries, a major brokerage integrated stablecoin funding and the Ethereum network saw adoption rise.

• Major crypto legislation stalls over stablecoin yield debate: A significant piece of U.S. crypto legislation hit a wall in the Senate Banking Committee over stablecoin yield, a friction point that sees traditional banks and non-bank issuers collide.

• Major brokerage launches stablecoin deposit functionality: A titan of electronic trading launched a feature allowing clients to deposit USDC (and soon RLUSD and PYUSD) to fund brokerage accounts instantly, 24/7.

• South Korea lifts 9-year ban on corporate crypto investment: South Korean regulators lifted a nearly decade-long ban, now allowing public companies to hold up to 5% of their equity capital in crypto assets, limited to top tokens like BTC and ETH.

• UK lawmakers push to ban crypto political donations over foreign interference fears: Senior Labour MPs are urging UK Prime Minister Keir Starmer to ban cryptocurrency donations to political parties, citing concerns about foreign interference in elections.

• More people are using Ethereum for the first time, data shows: Ethereum has seen a significant increase in new addresses interacting with the network, indicating fresh participation.

Vibe Check: 2026—Crypto’s Sophomore Year?

By Andy Baehr, Head of Product and Research, CoinDesk Indices

A year has passed since Donald Trump’s second Inauguration Day. For crypto, that day represented the hope (and expectation) of a new era in which regulatory ambiguity and clampdowns would be replaced by legislative and structural progress.

That’s why 2025 struck me as a freshman year for crypto—the first year of matriculation in the premier institution of higher capitalism and finance, the United States.

That would make 2026 a sophomore year—a year to build, grow and specialize, now that first-year prerequisites have been satisfied and the surroundings are familiar.

The Report Card

So, how did freshman year go? Before we even begin, let us remember the mighty and “breadthy” rally that followed what was not a particularly surprising Election Day result. That party continued, with a few brief breathers, until Inauguration Day, when bitcoin made an all-time high.

What followed were four quarters distinct in mood and outcome. Like most bright-eyed freshmen, crypto got taught its first lesson early, ending the orientation honeymoon. The Tariff Tantrum and resulting hangover knocked bitcoin below 80,000 and ETH clear down towards $1500.

By the second quarter, a rehydrated and caffeinated market found its rhythm, scoring well on its IPO case and preparing major projects in early the third quarter. As the quarter progressed, everything fell into place, with new all-time highs and stablecoins everywhere.

That’s why the fourth quarter hurt so bad. A heartbreaking half semester marked by significant volatility—a real confidence killer. There was no recovery.

In the end, it matters how you perform.

Avoiding a Sophomore Slump

We have rarely anticipated an upcoming quarter with as much energy and excitement as we do today, with a mighty slate of client launches and a rich pipeline of game-changing products. Yet we realize that to avoid the notorious “sophomore slump,” crypto has to get a few things right in 2026.

Legislate and regulate. Critical crypto legislation faces a tough road ahead, with stablecoin rewards controversy complicating an already difficult timeline. Small points must be put aside and compromise must be made to advance this critical legislation.

Figure out distribution. Crypto’s most fundamental challenge remains building meaningful distribution channels beyond self-directed traders. Until crypto reaches retail, mass affluent, wealth and institutional segments with the same incentives for allocation as other asset classes, institutional acceptance won’t translate to institutional performance. Financial products must be sold to be used.

Focus on quality. Relative performance data demonstrates that larger, higher-quality digital assets will continue to prevail. Top-tier names—currencies, smart contract platforms, defi protocols, infrastructure mainstays—provide plenty of breadth for diversification and new themes without cognitive overload.

Sophomore year can be daunting and unforgiving, but it can also be unforgettably productive and successful. This year offers crypto the chance to begin a more meaningful contribution to multi-asset portfolios and global markets trading and risk management.

Chart of the Week: Bitcoin & Gold Correlation Turns Positive

While gold hits new all-time highs, bitcoin’s 30-day rolling correlation has flipped positive for the first time this year to 0.40. Despite this shift, BTC remains technically heavy, failing to reclaim its 50-week EMA after a 1% weekly dip. The core thing to monitor now is whether a sustained gold uptrend will provide a medium-term lift for bitcoin or if BTC’s persistent price weakness confirms a decoupling from traditional safe-haven assets.