Tokenization and Stablecoins Set to Drive Crypto Adoption in 2026 – Coinbase

Highlights:

• Coinbase reported in its year-end outlook that ETFs, tokenization, and stablecoins will drive crypto expansion this year.
• Clearer crypto rules were identified as one of the game changers in the just-concluded year.
• ETFs saw remarkable growth and could expand further with more funds set to launch in 2026.

As 2025 finally concludes, the crypto market might seem calm. However, a deeper analysis from Coinbase’s head of investment research, David Duong, showed that last year laid the foundation for major growth in 2026. Duong noted that clearer rules, spot exchange-traded funds (ETFs), stablecoins, and tokenization will drive this expansion.

According to Coinbase’s published research, crypto is no longer driven by early users and tech firms. Big institutions are gradually adopting the asset class, resulting in a wider crypto user base. This shift in adoption trend has improved demand for digital assets, influencing market movements.

Duong stated:

“I think the asset class is still defined by accelerating institutional adoption and a broader investor base reshaping demand. In other words, the industry’s full potential is still far from realized.” 

https://t.co/BY2Fr5Y0oj

— David Duong🛡️ (@DavidDuong) December 31, 2025

Clearer Rules Boost ETF Launches and Expansion

Globally, rules around crypto became clearer in 2025. In the United States, attention shifted towards stablecoins and market structuring to accommodate digital assets. In Europe, Markets in Crypto-Assets (MiCA) regulations ensured consistency across countries. These clearer rules helped companies to plan better, manage risk, and meet various compliance requirements. As a result, firms are now more confident to build crypto-related products and integrate cryptocurrencies into payment and settlement systems. 

Spot ETFs also benefited from the clearer regulations. Last year, the ETF market expanded beyond Bitcoin and Ethereum to include altcoins like Solana (SOL), XRP, Litecoin (LTC), Chainlink (LINK), and Dogecoin (DOGE). There are still other applications pushing for the launch of ETFs linked to Avalanche (AVAX), Hyperliquid (HYPE), and SUI. 

Despite the decline in the crypto market over the last few months of 2025, US crypto ETFs attracted over $31.77 billion in net inflows last year. Bitcoin ETFs topped the inflows with $21.4 billion net inflows in 2025, down from $35.2 billion in 2024. Ethereum ETFs, in their first full year, attracted $9.6 billion, a fourfold increment from the value recorded between July 2024 and December 2024. Spot Solana ETFs launched in late October and attracted roughly $765 million before the end of 2025. 

On Dec. 31 (ET), Bitcoin spot ETFs recorded a net outflow of $348 million, with none of the 12 ETFs seeing net inflows. Ethereum spot ETFs saw net outflows of $72.06 million, with no inflows across all nine ETFs. Solana spot ETFs posted net inflows of $2.29 million, while XRP… pic.twitter.com/O8LmXEyD2P

— Wu Blockchain (@WuBlockchain) January 1, 2026

AI, Tokenization, and Stablecoin Adoption Set to Soar

Coinbase’s research noted that tokenized assets and stablecoins integrated deeper into daily transactions in 2025. “We expect these forces to compound in 2026 as ETF approval timelines compress, stablecoins take a larger role in delivery-vs-payment structures, and tokenized collateral is recognized across traditional transactions,” Duong added. 

On the technology aspect, progress seemed different from last year. Breakthroughs purely linked to crypto dropped as attention shifted towards Artificial Intelligence (AI). Despite the shift in focus, new wallets and networks were launched with better user experience and real-world applications. 

Projects are also focusing on how value returns to users. Programs like token buybacks, fee sharing, and other similar models are gradually becoming more common, highlighting the growing trend of user-centred approaches among firms. Institutional use has also increased demand for better control and monitoring, reigniting interest in privacy-focused payment tools. Concluding the research, Duong highlighted key focus areas, which include easier account setup, simple sign-in methods, built-in stablecoin payments, and clear checks for identity and access.