\n
Advertisement: Scroll to Continue<\/p>\n<\/div>\n
The defining question for 2026 is not whether blockchain technology is viable<\/span>, but which<\/span> of the long-held assumptions about its adoption, regulation and financial plumbing can survive contact with the operational realities of banks, asset managers and corporate treasuries, they suggested.<\/span><\/p>\nInstitutional Adoption Moves From \u2018Should We?\u2019 to \u2018How Much?\u2019<\/span><\/strong><\/h2>\nAs hype cycles give way to systems thinking, blockchain is increasingly framed not as a speculative disruptor but as infrastructure, something that lives inside portfolios, workflows and balance sheets. Institutional adoption is no longer hypothetical. The real question is scale.<\/span><\/p>\n\u201cI think that we\u2019re at an inflection point right now,\u201d Rugg said. \u201cWhat I do think is we start to see a shift in the conversation, not should we, but how much?\u201d<\/span><\/p>\nToday, institutional allocations to digital assets <\/span>tend to hover around<\/span> 1% to 2%. That number may not surge dramatically in 2026, but what\u2019s changing is the tone of the dialogue. Infrastructure is maturing. Custody frameworks are clearer. Risk models, accounting treatment and internal approvals are becoming normalized.<\/span><\/p>\nAsked by Webster whether this normalization implies growth in exposure or simply broader participation at modest levels, Rugg leaned toward the latter.<\/span><\/p>\n\u201cIt\u2019s not just the hoodies anymore,\u201d she said. \u201cThe suits and ties have arrived.\u201d<\/span><\/p>\nStill, the level of allocation remains cautious. <\/span>Until regulatory frameworks mature further, digital assets will <\/span>be<\/span> present but <\/span>likely<\/span> not predominant in most institutional strategies.<\/span><\/p>\nTokenization\u2019s Breakthrough Depends on Cash, Not Code<\/span><\/strong><\/h2>\nThe same tension between promise and readiness defines the long-running prediction that tokenization of real-world assets will finally scale. Tokenized bonds, private credit and real estate have been discussed for years, often trapped in pilot programs that never quite make it to production.<\/span><\/p>\n\u201cWhat was missing in the past was cash on chain,\u201d Rugg said.<\/span><\/p>\nThat gap is now narrowing as stablecoins and tokenized deposits enable assets and settlement to live on the same rails. True <\/span>delivery-versus-payment<\/span> and near-instant settlement are now technically feasible.<\/span><\/p>\nBut feasibility does not equal simplicity. Webster pointed to the critical bottleneck of enterprise readiness. Real-time settlement faces challenges due to decades of batch-based processes embedded in treasury systems, ERPs and internal controls.<\/span><\/p>\nRugg said she expects adoption to begin with simpler instruments. Tokenized money market funds sit just above cash on the complexity curve and benefit from familiarity among asset managers and treasurers. More complex assets will follow slowly.<\/span><\/p>\nAsset managers may be moving ahead, but corporate adoption will hinge on retooling systems built for end-of-day reconciliation, not always-on liquidity. In that sense, tokenization\u2019s breakthrough is less about blockchain capability than about organizational change.<\/span><\/p>\n