After years defined by speculation, volatility, and headline-driven narratives, crypto may be entering its most consequential phase yet. According to Presto Research, 2026 is shaping up to be less about dramatic price cycles and more about whether digital assets can function as real financial infrastructure. From Bitcoin’s evolving role in institutional portfolios to the quiet rise of stablecoins and tokenized assets, 2026 could determine whether crypto matures into a durable part of the global financial system or remains stuck in perpetual experimentation.
To unpick these issues further, Digital Journal spoke with Peter Chung, Head of Research at Presto Labs.
Digital Journal: Why does Presto view 2026 as a more pivotal year for crypto than 2025 or earlier market cycles?
Peter Chung: Many of the developments people pointed to in 2024–2025 were approvals, pilots, or early signals, priming this year to be when these evolve into operational products. Many approvals and signals hit the headlines but perhaps with limited actionable follow-through across regulatory changes, custody expansion, token issuance frameworks, and bank participation. In 2026, these regulatory and infrastructure changes should allow entities to participate operationally and start marking real progress.
DJ: How do you expect Bitcoin’s market behavior and investor base to change in 2026 compared to prior cycles?
Chung: Spot Bitcoin ETFs will continue absorbing flows, concentrating ownership in institutional vehicles as the digital gold becomes increasingly held by sovereign funds, pensions, corporates, and treasury vehicles rather than just retail wallets. Custody has been a vertical prime for a trad-fi takeover from crypto-native operators while BTC-backed lending has expanded, including state-level pilots and early mortgage-style underwriting discussions. Further, as options markets deepen as ETF options, covered-call products, and treasury overwriting grows, volatility will compress, with the underlying asset becoming a key component of portfolio construction amongst sophisticated investors.
DJ: Are speculative altcoin narratives finally losing relevance and if so, what is capital rotating toward instead?
Chung: Median altcoin funding rates moved toward zero or negative through 2025, showing lack of bullish sentiment, as well as downright bearishness. In this backdrop, capital has increasingly concentrated in institutionally friendly coins such as BTC, as well as protocols with visible fee generation built with simpler token structures and limited dilution. Hyperliquid stands out as a rare example where revenue growth translated into sustained interest; narrative-only assets still trade, but capital does not stay parked in them
DJ: Why are stablecoins and tokenized assets becoming more important than price action in understanding crypto’s real progress?
Chung: Stablecoin supply exceeded $300B in 2025 and continues growing independent of spot markets – roughly one-third of stablecoin usage is tied to payments and remittances, not speculation. Headlines in this sector has energised the market, with tokenised Treasuries surpassed $9B including BlackRock’s BUIDL crossing $2B and tokenised gold expanded sharply with Tether Gold holding more physical gold than several central banks.
These products, including tokenised equities, can be used for settlement, yield, collateral, and balance-sheet management, and are designed to scale through institutional demand and regulation, rather than retail risk appetite.
DJ: What do institutions and policymakers still misunderstand most about crypto as it heads into 2026?
Chung: Crypto adoption is increasingly happening through new facets of on-chain finance such as custody, credit, and settlement, not just retail perp trading. While many expect lower volatility, this can reflect deeper markets and hedging, not declining relevance. If the trend of regulatory activity moving onshore can continue while policy lag catches up, the market’s progress will be exponential as a lot of the structural work has been completed.
