From Wall Street to Web3: Silicon Valley Bank indicates this is the year of integration for cryptocurrency.

This year, digital assets are set to transition from pilot initiatives to essential financial infrastructure, encompassing bank-led stablecoins, tokenized treasury bills, and AI-enhanced wallets.

From Wall Street to Web3: 2026 is crypto’s integration year. (Unsplash, modified by CoinDesk)

What to know:

• Stablecoins are being recognized as the “dollar of the internet,” driven by enhanced regulations and corporate interest in payment and settlement solutions.
• Tokenization of real-world assets and AI-enhanced crypto applications are transitioning blockchain from speculative ventures to fundamental infrastructure, according to the bank.

Last year marked a revival of crypto’s presence in institutional finance. This year, Silicon Valley Bank (SVB) asserts, it will become more integrated into the broader financial framework.

Regulatory clarity improved in 2025, institutional participation surged, and capital markets reopened. The emphasis is now shifting from price fluctuations to infrastructure as digital assets become increasingly integrated into payment systems, custody solutions, treasury management, and capital markets.

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“All the forces currently influencing crypto share a common theme: the industry is transitioning from expectations to actualization. Pilot projects are expanding, and capital is consolidating,” stated Anthony Vassallo, senior vice president of crypto at SVB, during an interview with CoinDesk.

The bank maintains over 500 connections with crypto enterprises and venture capital firms investing in the sector, noting that institutional capital, consolidation, stablecoins, tokenization, and AI are merging to redefine monetary transactions.

Following its collapse in 2023, SVB was acquired by North Carolina-based First Citizens Bank and now functions within a top-20 U.S. bank with $230 billion in assets. In 2025, it added 2,100 clients, concluding the year with $108 billion in total client funds and $44 billion in loans.

Fewer experiments, more conviction

“The suits and ties have arrived,” states the bank’s outlook report for 2026.

Venture capital investments in U.S. crypto firms increased by 44% last year, totaling $7.9 billion, according to PitchBook data referenced by SVB. Although the number of deals declined, median investment sizes rose to $5 million as investors concentrated their capital on stronger teams. Seed valuations surged by 70% compared to 2023.

The bank cautions that the demand for institutional-grade crypto firms may exceed the supply of investable entities.

“In 2026, the environment is favorable for ongoing growth in VC funding for crypto. As institutional adoption accelerates, leading to larger venture capital investments, we anticipate continued capital concentration in fewer companies, with investors prioritizing higher-quality projects and follow-on investments in established teams,” Vassallo noted.

“For end users, this will result in a smoother experience across everyday financial activities, from making international payments to managing investment portfolios.”

Corporate balance sheets are bolstering the trend. At least 172 public companies held bitcoin BTC$68,770.50 in the third quarter of 2025, representing a 40% increase from the previous quarter, collectively controlling around 5% of the circulating supply, based on data referenced by SVB.

A new category of digital asset treasury firms, which treat crypto accumulation as a key strategy, has emerged. The bank anticipates consolidation as standards tighten and volatility challenges business models.

Additionally, traditional banks are delving deeper into the sector. JPMorgan, the largest U.S. bank by assets, intends to accept bitcoin and ether ETH$1,978.09 as collateral, as reported by Bloomberg last year. SoFi Technologies is providing direct digital asset trading. U.S. Bank is offering custody services through NYDIG. SVB expects more institutions to introduce lending, custody, and settlement products as compliance measures solidify.

M&A and the race to full-stack crypto

Why build when purchasing is an option?

Over 140 venture capital-backed crypto companies were acquired in the four quarters leading to September, marking a 59% year-over-year increase, according to the bank’s analysis of PitchBook data. The $2.9 billion acquisition of Deribit by Coinbase and Kraken’s $1.5 billion purchase of NinjaTrader highlighted this trend.

This pattern also extends to banking charters. In 2025, 18 companies sought charters from the Office of the Comptroller of the Currency (OCC), with most being blockchain-enabled enterprises. The OCC granted conditional approval to digital asset-focused trust banks, including custody provider BitGo (BTGO), Circle Internet (CRCL), the issuer of the second-largest stablecoin, trading platform Fidelity Digital Assets, stablecoin issuer Paxos, and payments network Ripple.

This represents a significant shift for SVB: stablecoin and custody infrastructure are now moving within the federal banking framework. The bank anticipates that traditional financial institutions will accelerate mergers and acquisitions to avoid being outpaced by vertically integrated crypto-native competitors.

“We expect M&A activity to set a new record in 2026. As digital asset capabilities become essential for financial services, firms will prioritize acquisition strategies over developing products from the ground up,” Vassallo stated.

“To address market needs ranging from stablecoin functions to comprehensive crypto banks, exchanges, custodians, infrastructure providers, and brokerages will consolidate into multi-product entities,” he added.

Stablecoins become the ‘internet’s dollar’

SVB notes that stablecoins are transitioning from mere trading instruments to forms of digital cash.

With near-instant settlement and lower transaction costs compared to traditional interbank transfer systems like ACH or card networks, dollar-pegged tokens are appealing for treasury functions, international payments, and business-to-business settlements.

Enhancements in regulatory clarity are facilitating adoption. The U.S. GENIUS Act, passed in July, established federal standards for stablecoin issuance, including 1:1 reserve backing and monthly reporting. Similar frameworks are being implemented in the EU, U.K., Singapore, and the UAE.

Starting in 2027, only authorized entities such as banks or sanctioned nonbanks will be allowed to issue compliant stablecoins in the U.S. SVB anticipates that issuers will spend 2026 aligning their products with federal regulations.

Banks are already testing these waters. Société Générale launched a euro stablecoin. JPMorgan expanded its JPM Coin to public blockchains. A consortium including PNC, Citi, and Wells Fargo is examining a collaborative token initiative.

Investment in stablecoin-focused firms surged to over $1.5 billion in 2025, rising from under $50 million in 2019, as reported by SVB.

In 2026, the bank envisions that tokenized dollars will be integrated into core enterprise systems, embedded within treasury workflows, collateral management, and programmable payments.

Tokenization and AI

Tokenization of real-world assets is gaining traction. Onchain representations of cash, Treasuries, and money-market instruments surpassed $36 billion in 2025, according to data referenced by the bank.

Funds managed by BlackRock (BLK) and Franklin Templeton have accumulated hundreds of millions in assets, settling transactions directly onchain. ETF issuers and asset managers are experimenting with blockchain-based wrappers to lower transfer fees and facilitate intraday settlement. Robinhood (HOOD) has introduced tokenized stock exposure for its European clientele and is planning to expand this offering to the U.S.

SVB envisions a convergence of private and public markets on shared settlement infrastructures, with tokenization extending beyond Treasuries to private markets and consumer-facing solutions.

Moreover, there is a merging with AI. In 2025, 40 cents of every venture dollar allocated to crypto was directed toward companies also developing AI technologies, up from 18 cents the previous year, based on SVB’s analysis. Startups are creating agent-to-agent commerce protocols, and major blockchains are incorporating AI into their wallets.

Autonomous agents capable of transacting in stablecoins may allow machines to negotiate and settle payments autonomously. Blockchain-based provenance and verification solutions are under development to address the trust challenges associated with AI.

The impact on consumers might be subtle. SVB predicts that the standout applications of the coming year will not label themselves as crypto. Instead, they will resemble fintech solutions, with stablecoin settlements, tokenized assets, and AI agents functioning discreetly in the background.

From expectation to infrastructure

Silicon Valley Bank’s primary message advocates for viewing crypto as foundational infrastructure.

Pilot projects are scaling up. Capital is consolidating. Banks are entering the space. Regulators are clarifying the boundaries. Blockchain technology is set to support treasury operations, collateral flows, international payments, and segments of capital markets.

While volatility will persist, and headlines will continue to affect prices, the bank contends that the underlying narrative is focused on the infrastructure.

“In 2025, the momentum in onchain representations of cash, Treasuries, and money market instruments propelled real-world assets into mainstream finance,” Vassallo remarked. “This year, cryptocurrencies will be regarded as infrastructure.”

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