Five Key Transformations in the Digital Asset Space by 2026 – Insights from Zodia Custody Report

As we look towards 2026, the digital assets landscape is set to mature significantly, according to the Zodia Custody predictions report. Backed by Standard Chartered, Zodia Custody focuses on the important aspects of custody, collateral, and connectivity, positioning them as crucial for the evolving "market infrastructure." At the same time, they highlight how stablecoins, staking, and tokenization are making capital access more efficient for institutions worldwide.

Key Takeaways

Institutional Evolution: Digital assets will transition to practical uses, focusing on productivity rather than speculation.
Custody Reinvented: Custody systems will evolve into foundational market infrastructure, emphasizing compliance and operational resilience.
Stablecoin Growth: Stablecoins will not only serve as settlement tokens but evolve into essential tools for treasury management and liquidity.
Collateral's New Role: The treatment of tokenized assets as collateral will reshape capital efficiency and facilitate access to idle capital.
Staking as Standard: Staking will shift from an optional feature to a necessary component for managing digital assets, fueled by the rise of secure DeFi options.

digital asset

The Zodia Custody report outlines a future where institutional digital assets transition from theoretical applications to practical implementations. The focus will shift toward infrastructure development, with custody becoming essential for the stability of the market. Key trends include the evolution of stablecoins, the role of staking in generating returns, and the growing importance of collateral in capital efficiency.

Building Blocks for a New Market Infrastructure

Chief Product Officer at Zodia Custody, Anoosh Arevshatian emphasizes that the transition leading up to 2026 will mark a shift in how institutional digital assets operate. She states, "We're moving beyond pilot programs to actual infrastructure that supports significant market activities."

Key predictions from the report include:

Custody will be a key aspect of institutional digital asset actions.
Stablecoins and tokenized assets will act as core liquidity sources.
Staking and decentralized finance (DeFi) will emerge as new avenues for institutional yield.
Collateral practices will redefine how capital is utilized.

Arevshatian adds that the focus for institutions will be on interoperability, trust, and capital efficiency, with digital asset infrastructure increasingly driving important financial operations like payments and settlements.

Five Critical Elements to Monitor in 2026

The Zodia Custody report identifies five crucial areas to watch in the digital asset realm as we head into 2026:

Evolving Custody Models: Custody will transition from merely a service to a comprehensive system that encompasses compliance, risk management, and operational resilience.

According to Managing Director, Deborah Algeo, "By 2026, banks will regard digital-asset infrastructure similar to how they view cloud computing – essential yet not something they’ll be reinventing. Sub-custody and SaaS solutions will emerge as the fastest and safest routes to market."
Programmable Stablecoins: The role of stablecoins will evolve from simple settlement tokens to more advanced treasury management tools.

The report anticipates that a strong stablecoin infrastructure and global regulatory clarity will enhance this market, facilitating the advent of bank-issued and high-quality stablecoins that can deliver around-the-clock liquidity.
Unlocking Capital through Collateral: Digital-asset collateral is expected to unlock vast amounts of previously idle capital.

Enhanced processes for real-time margining and settlement will improve transparency and efficiency. Experts also project that regulations will acknowledge tokenized assets as viable collateral, paving the way for new investment opportunities.
Staking Becomes Standard: Staking is forecasted to become a default requirement in the digital asset custody landscape, transforming into a key strategy for earning returns.

Nezhda Aliyeva, Head of Product, underscores that institutional clients are looking for secure and compliant yield management solutions, making integrated staking capabilities essential.
Convergence of DeFi and Institutional Finance: With increasing connectivity between institutional liquidity and DeFi pools, new financial strategies will emerge.

Sahil Sood notes that solutions like Morpho demonstrate how risk-managed DeFi can provide considerable yields and transparency, signaling that branded DeFi products will be vital offerings for institutions in the near future.

Though the report recognizes that past predictions have fallen flat, it asserts that 2026 is different. Enhanced infrastructure, record inflows in tokenized commodities, and solutions for KYC and identity verification will enable institutions to treat tokenized funds as equivalents to digital cash, generating yield while ensuring compliance.

Ultimately, capital efficiency will define this new era of institutional digital assets. Off-exchange settlements (OES) will play a crucial role in achieving safer and scalable market participation as systems converge and mature.

In summary, institutions are prioritizing capital efficiency over speculation. This shift will make custody and control central to driving serious participation in the digital asset space by 2026.