From bank-led stablecoins to tokenized T-bills and AI-powered wallets, digital assets will move from pilot projects to financial plumbing this year.

Last year restored crypto’s institutional footing. This year, according to Silicon Valley Bank (SVB), is when it becomes more integrated into the financial system.

Regulatory clarity improved in 2025, institutional engagement accelerated and capital markets reopened. Now the focus is shifting from price cycles to infrastructure as digital assets become more deeply embedded into payments, custody, treasury management and capital markets.

“Regardless of how tangible or visible, all the forces shaping crypto today share a common thread: Crypto is moving from expectations to production. Pilot programs are scaling and capital is consolidating,” Anthony Vassallo, senior vice president of crypto at SVB, told CoinDesk in an interview.

The bank, which maintains more than 500 relationships with crypto companies and venture firms investing in the sector, says institutional capital, consolidation, stablecoins, tokenization and AI are converging to reshape how money moves.

After its 2023 collapse, SVB was bought by North Carolina–based First Citizens Bank and now operates within a top-20 U.S. bank with $230 billion in assets. In 2025, it added 2,100 clients and ended the year with $108 billion in total client funds and $44 billion in loans.

Fewer experiments, more conviction

“The suits and ties have arrived,” according to the bank’s 2026 outlook report.

Venture funding in U.S. crypto companies rose 44% last year to $7.9 billion, according to PitchBook data cited by SVB. While the deal count fell, median check sizes climbed to $5 million as investors concentrated capital into stronger teams. Seed valuations jumped 70% from 2023 levels.

The bank warns that demand for institutional-grade crypto companies could outstrip the number of investable firms.

“In 2026, conditions are ripe for continued growth in VC investment in crypto. As institutional adoption accelerates, driving larger venture capital checks, we expect continued capital concentration in fewer companies with investors prioritizing higher-quality projects and follow-ons into proven teams,” Vassallo said.

“For end users, the result will be a more seamless experience across everyday financial interactions, from sending cross-border payments to managing an investment portfolio.”

M&A and the race to full-stack crypto

Why build when you can buy?

More than 140 venture capital-backed crypto companies were acquired in the four quarters ending in September, a 59% year-over-year jump, according to the bank’s analysis of PitchBook data. Coinbase’s $2.9 billion acquisition of Deribit and Kraken’s $1.5 billion purchase of NinjaTrader underscored the scale.

The trend extends to banking charters. In 2025, 18 companies applied for charters from the Office of the Comptroller of the Currency (OCC), most of them blockchain-enabled firms. The OCC granted conditional approval to digital-asset-focused trust banks including custody provider BitGo (BTGO), Circle Internet (CRCL), the company behind the second-largest stablecoin, trading platform Fidelity Digital Assets, stablecoin issuer Paxos and payments network Ripple.

For SVB, that marks a turning point: stablecoin and custody infrastructure moving inside the federal banking perimeter. The bank expects traditional financial institutions to accelerate dealmaking rather than risk being disrupted by vertically integrated crypto-native rivals.

“We expect M&A to set a record again in 2026. As digital asset capabilities
become table stakes for financial services, companies will focus on acquisition strategies instead of building products from scratch,” Vassallo says.

“To meet market demands ranging from stablecoin capabilities to full-stack crypto banks, exchanges, custodians, infrastructure providers and brokerages will consolidate into multiproduct companies,” he said.

Stablecoins become the ‘internet’s dollar’

Stablecoins, SVB said, are evolving from trading tools into digital cash.

With near-instant settlement and lower transaction costs than interbank transfer system ACH or card networks, dollar-backed tokens are attractive for treasury operations, cross-border payments and business-to-business settlement.

Regulatory clarity is accelerating adoption. The U.S. GENIUS Act, passed in July, established federal standards for stablecoin issuance, including 1:1 reserve backing and monthly disclosures. Similar frameworks are in place in the EU, U.K., Singapore and the UAE.

Beginning in 2027, only permitted entities such as banks or approved nonbanks will be allowed to issue compliant stablecoins in the U.S. SVB expects issuers to spend 2026 aligning products with federal oversight.

Banks are already experimenting. Société Générale introduced a euro stablecoin. JPMorgan expanded JPM Coin to public blockchains. A group including PNC, Citi and Wells Fargo is exploring a joint token initiative.

Venture dollars are following. Investment in stablecoin-focused companies surged to more than $1.5 billion in 2025, up from less than $50 million in 2019, according to SVB.

In 2026, the bank expects tokenized dollars to move into core enterprise systems, embedded in treasury workflows, collateral management and programmable payments.

Tokenization and AI

Real-world asset tokenization is scaling. Onchain representations of cash, Treasuries and money-market instruments exceeded $36 billion in 2025, according to data cited by the bank.

Funds from BlackRock (BLK) and Franklin Templeton have amassed hundreds of millions in assets, settling flows directly onchain. ETF issuers and asset managers are testing blockchain-based wrappers to reduce transfer costs and enable intraday settlement. Robinhood (HOOD) now has tokenized stock exposure for European users and plans U.S. expansion.

SVB sees private and public markets converging on shared settlement rails, with tokenization expanding beyond Treasuries into private markets and consumer-facing applications.

Then there’s the convergence with AI. In 2025, 40 cents of every venture dollar invested in crypto went to companies also building AI products, up from 18 cents the year prior, according to SVB’s analysis. Startups are building agent-to-agent commerce protocols, and major blockchains are integrating AI into wallets.

Autonomous agents capable of transacting in stablecoins could enable machines to negotiate and settle payments without human intervention. Blockchain-based provenance and verification tools are being developed to address AI’s trust deficit.

The consumer impact may be subtle. SVB predicts that next year’s breakout apps won’t brand themselves as crypto. They will look like fintech products, with stablecoin settlement, tokenized assets and AI agents operating quietly in the background.

Banks Shouldn’t Fear Stablecoin Yields, Says White House Crypto Adviser

“Banks should not view stablecoin yield offerings as a competitive threat”, according to White House crypto adviser Patrick Witt. “Crypto service providers sharing yield with customers does not undermine the banking industry’s business model or market position”. Witt described the conflict as unfortunate given that both sectors could coexist.

Banks can offer stablecoin products to their customers just as crypto platforms do, Witt explained. Many banks are now applying for OCC bank charters to provide similar products. He projects that banks will eventually find opportunities to leverage these products and expand their businesses rather than viewing them as threats.

The ability of crypto platforms to provide rewards on stablecoin holdings has emerged as one of the most contentious issues delaying the CLARITY market structure bill. The legislation aims to establish clear regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission for oversight of crypto markets.

The proposed CLARITY Act would also create a formal asset taxonomy for cryptocurrencies. However, government officials and industry executives warn that the approaching 2026 U.S. midterm elections could derail the legislation and reverse crypto regulations established under President Donald Trump’s administration.

U.S. Treasury Secretary Scott Bessent stated on Friday that Democratic control of the House would collapse prospects for reaching a deal. He characterized such an outcome as far from his preferred scenario but acknowledged the political risk.

Witt emphasized the narrow window for action. The White House Crypto Council aims to secure passage of the CLARITY Act before midterm election campaigns consume legislative attention and political capital.

The stablecoin yield dispute reflects broader tensions between traditional finance and crypto sectors over customer relationships and product offerings. Resolution of this conflict appears necessary for the bill to advance, but compromise between the two industries has proven difficult despite pressure from the White House to reach agreement before the political window closes.