ETFs and Stablecoins Poised to Propel Crypto Adoption in 2026

Coinbase's David Duong believes that the combination of ETFs, regulated stablecoins, and tokenized assets will pave the way for significant cryptocurrency adoption in 2026, translating today's regulatory clarity into real-world applications.

Key Takeaways

Exchange-traded funds (ETFs), stablecoins, and tokenization are set to spearhead accelerated crypto adoption in 2026.
Regulatory developments in 2025 have enhanced institutional participation in the crypto market.
The stability in global crypto adoption signals market maturity rather than stagnation.
It is anticipated that changes in legislation will enable broader participation and operational readiness in the cryptocurrency sector.

Coinbase: ETFs, stablecoins, tokenization drive 2026 adoption

2023: A Transformative Year for ETFs

In a recent year-end analysis, Duong highlighted that 2025 marked a pivotal moment for the digital asset industry. He noted that the introduction of regulated spot ETFs has allowed for wider investor participation, an increase in corporate crypto treasuries, and a deeper integration of stablecoins and tokenized assets in traditional financial systems.

“We expect these factors to escalate in 2026, with the timeliness of ETF approvals speeding up, stablecoins playing larger roles in delivery versus payment mechanisms, and a broader recognition of tokenized collateral in traditional transactions,” Duong stated in his report.

Data from analytics platform Demand Sage shows that global cryptocurrency adoption has remained relatively stable over the past two years, fluctuating between 10.3% in the first quarter of 2023 and 9.9% in the first quarter of 2025. Duong suggests that this consistency reflects a mature market rather than stagnation.

Regulatory Developments Shaping the Cryptocurrency Landscape

Regulatory advancements in key regions throughout 2025 have significantly altered how institutions assess risk and invest in digital assets. In the U.S., lawmakers moved forward with the GENIUS Act, which establishes a framework for stablecoins and their use in payments. Meanwhile, in Europe, the Markets in Crypto-Assets regulation has provided a greater degree of consistency in licensing and compliance for member states.

“The practical outcome is a real operational readiness,” Duong explained, emphasizing that policy safeguards now enable firms to develop products, build scalable infrastructures, and integrate crypto into payment and settlement systems.

A Shifting Crypto Market Landscape

Duong also remarked that the cryptocurrency markets are no longer influenced by a single narrative or dominated by early adopters. Instead, a diverse range of institutions, allocators, and end-users now plays a pivotal role in the market dynamics, tying crypto investments to broader macroeconomic factors, technological advancements, and geopolitical events.

“Demand is no longer reliant on just one story,” Duong said, indicating that cryptocurrencies are increasingly viewed through the lens of long-term strategy as they become integrated into mainstream financial ecosystems.

In a related move, last month, Coinbase announced its plans to acquire The Clearing Company to scale its prediction markets and further its goal of becoming an “Everything Exchange.” Additionally, the company initiated legal actions against the U.S. states of Michigan, Illinois, and Connecticut regarding regulatory oversight of prediction markets in the country.