Coinbase, in its latest published (Crypto Market Outlook 2026) outlook report, points out that 2026 is positioned as a significant watershed for the development of the crypto industry, while the crypto market is gradually shaking off its past positioning dominated by speculation and singular narratives, shifting towards becoming a 'key infrastructure' that can be practically used, integrated, and deployed within the global financial system.
Market roles are transitioning from investment targets to financial infrastructure.
Coinbase indicates that the core positioning of the crypto market is changing. Compared to the past, where it was mainly seen as a tradable and speculative asset class, future crypto infrastructure will be used more, rather than just held.
This transformation is reflected on multiple levels, including on-chain settlement mechanisms, collateral usage, corporate financial management, and resource allocation such as block space. Coinbase believes that the crypto market is gradually embedding itself into the operational processes of the existing financial system, becoming part of the settlement layer, capital efficiency tools, and digital financial channels, rather than being an alternative market independent of the system.
2026 positioning, a structural turning point of macro and institutional convergence
Coinbase points out that 2026 is considered a key year not due to a single event, but as a result of multiple long-term trends converging over time.
On the one hand, the regulatory system is gradually moving from the legislative and policy discussion phase to a stage that can be practically implemented. On the other hand, the maturity of institutional financial tools and on-chain technology is simultaneously improving, enabling the crypto market to undertake larger-scale financial activities. These factors will converge around 2026, driving a significant shift in market structure.
Macroeconomic background, growth support under cautious optimism
At a macro level, the report's overall assessment of the U.S. economic outlook for 2026 is cautiously optimistic. Coinbase points out that the continuous introduction of AI technology across various industries significantly enhances labor productivity, which will somewhat cushion the pressures arising from economic cycles.
Against this backdrop, the innovative financial structures and the external environment faced by risky assets are more stable than before, providing foundational conditions for the expansion of institutionalized crypto financial tools.
ETF and DAT evolution, institutional financial tools fully upgraded
Coinbase states that the regulatory process for ETFs is expected to see a significant efficiency improvement in 2026, with review timelines anticipated to shorten from about 270 days to about 75 days, accelerating the pace of institutionalized crypto financial products' launch. Coinbase believes that this process acceleration will effectively reduce institutional friction, enhancing market predictability for crypto financial products.
At the same time, Coinbase also positions the Digital Asset Treasury (DAT) after 2026 as a '2.0 phase', indicating that DAT-type companies will no longer be limited to passive asset accumulation, but will shift towards covering more specialized divisions such as trading, custody, and risk management, further extending to the procurement and allocation of 'Sovereign Block Space'.
Coinbase points out that block space is gradually being viewed as a digital economic resource that can be valued, allocated, and managed, and in the future may be incorporated into the financial and strategic decision-making systems of enterprises and institutions, similar to bandwidth or computing power.
Regulatory direction is forming, and policy clarity drives financial integration
Coinbase points out that the U.S. crypto policy environment is gradually clarifying, which will become an important driving force for market transformation in 2026. With the continued advancement of the (GENIUS Act) and (CLARITY Act), long-standing regulatory uncertainties are expected to significantly decrease.
Coinbase believes that as institutional boundaries become clearer, more financial transactions, settlements, and capital allocation activities will shift to on-chain execution, and crypto assets will gradually integrate with traditional financial systems.
Tokenization and payment structures are gradually accelerating their integration into the mainstream system
Coinbase points out that tokenized assets will be more widely recognized as qualified collateral in traditional financial transactions in the future, being integrated into existing financial operational processes. This means that the role of tokenized products is shifting from past pilot and experimental phases to tools that can be practically used in the mainstream financial system.
In terms of payment and settlement, stablecoins will also be more deeply integrated into the 'Delivery-vs-Payment (DvP)' structure, thereby enhancing the efficiency and security of transaction settlements and reducing the settlement risks faced by cross-market exchanges. Coinbase believes that as collateral and settlement mechanisms gradually move on-chain, on-chain finance will form a closer integration with existing financial structures.
A shift in technology and economic models, as token economics enters 2.0
Coinbase points out that as the market matures, crypto project designs after 2026 will pay more attention to the concept of 'Protocol P&L'.
Coinbase states that more and more projects will introduce mechanisms such as token buybacks and fee-sharing, linking token value directly to platform actual usage rates and profitability. This change brings the economic model of crypto assets closer to the financial structures and incentive logic of mature companies in traditional finance.
User experience and privacy needs drive on-chain finance towards large-scale adoption
To expand the user base, Coinbase points out that the focus of technological development in 2026 will be on account abstraction, password key login, and native stablecoin payment mechanisms.
Coinbase believes that the user experience of decentralized financial services is developing towards a fluidity that is nearly indistinguishable from that of general consumer-level apps. It also points out that as institutional investors become more sensitive to monitoring risks and data leaks, privacy protection technologies such as Zero-Knowledge Proofs (ZKP) and Fully Homomorphic Encryption (FHE) are expected to see significant demand growth in 2026 and gradually become one of the important prerequisites for institutional participation in on-chain finance.
This article Coinbase looks forward to 2026: the crypto market moves out of speculation dominance, and institutionalization accelerates significantly. Originally appeared in Chain News ABMedia.
