Keyrock’s CEO suggests bitcoin is undervalued and is entering a ‘transition year.’

Kevin de Patoul suggests that 2026 will not be a setback for digital assets, but rather a time for structural realignment as traditional finance quietly transitions on-chain.

Keyrock CEO and co-founder Kevin de Patoul. (Keyrock, modified by CoinDesk)

What to know:

• Keyrock CEO Kevin de Patoul asserts that bitcoin should be valued significantly higher in light of macroeconomic uncertainties and advancements in institutional engagement, yet it continues to be priced like a risk-on asset.
• He believes 2026 will serve as a year of transition as tokenized assets and stablecoins are further developed.
• According to de Patoul, tokenized real-world assets might grow to equal or surpass the market size of crypto’s previous cycle at its peak by 2027–2028 as liquidity and infrastructure are established.

Bitcoin BTC$73,377.06 should be trading at a higher price point than it currently is.

This perspective comes from Kevin de Patoul, CEO and co-founder of the crypto investment firm Keyrock, who contends that the market is misunderstanding both the macro conditions and the ongoing structural developments within digital assets.

The largest cryptocurrency was trading near $73,000 at the time this was published. Bitcoin has experienced a decline of approximately 18% year-to-date, having reached an all-time high of roughly $125,000 in early October of the previous year.

“Reflecting on the positive advancements from early 2025 through 2026, such as regulatory improvements and institutional adoption, many would have expected the price to surge,” de Patoul remarked. “Increased macroeconomic uncertainty should drive up bitcoin demand, yet that hasn’t occurred.”

Instead, BTC has faced significant pressure over the past nine months, continuing to act as a risk-on asset rather than the risk-off hedge that many advocates claim it to be. The institutional capital that had aggressively entered bitcoin during the last 18 months now appears to be more tactical than ideological.

“It is still valued as a risk-on asset. The last in, first out principle applies to capital allocation,” he noted. “If investors view it this way, they will reduce their exposure during stressful periods.”

Crypto assets have exhibited a tepid performance over the preceding six months, with bitcoin remaining well below its previous highs, and much of the altcoin sector struggling to maintain upward momentum. Trading volumes have decreased, volatility has contracted, and broad-based rallies have not materialized, creating a stark contrast to the speculative spikes of earlier cycles. Even as institutional adoption and tokenization initiatives progress quietly in the background, price movements have been muted, indicative of cautious capital flows and a market searching for its next driver.

De Patoul refrains from asserting that the market is incorrect. However, he finds it challenging to align the recent downturn with the larger context. “Nothing truly accounts for the recent decline unless there is a misinterpretation of the asset’s intended nature.”

This disconnect exemplifies what he perceives as the current phase of crypto: not a breakout cycle but rather a structural transition.

"We’re not issuing stablecoins or accepting retail deposits, but we’re interconnected with everything and provide liquidity across all platforms," de Patoul stated. "This positions us to witness the evolution and enables us to engage in the market as it shifts toward digital assets and tokenized infrastructure.”

A tale of two markets

From Keyrock’s perspective, collaborating with banks, asset managers, issuers, and exchanges, 2026 appears less like a period of stagnation and more like a phase of rewiring.

“2026 seems like a year of transition rather than one of breakout,” de Patoul commented. “Many elements that characterized crypto in prior cycles are fading faster than anticipated, while the components that truly make sense are still in development, like real finance moving on-chain.”

In his assessment, two largely uncorrelated markets are emerging simultaneously.

The first is the crypto-native ecosystem: decentralized finance (DeFi), altcoins, and the familiar cycle of liquidity and speculation. Here, sentiment is low. The previous rising tide that once elevated all tokens has receded. Broad speculative rallies are becoming increasingly difficult to sustain, replaced by “very precise opportunities that make sense,” he stated.

The second market involves the digitization of traditional finance. This includes tokenized money market funds, stablecoins, on-chain funds, and new market infrastructure. On this front, he indicates that his enthusiasm remains high.

“When I engage with institutions, nothing has changed. The enthusiasm level, the commitment to building, all that drive is still strong,” de Patoul remarked. “The goal is to enhance accessibility of crypto assets for clients and to rewire segments of financial markets.”

These institutional initiatives are less affected by bitcoin’s price fluctuations. Stablecoins, tokenized funds, and settlement systems focus on upgrading the financial infrastructure rather than speculating on the next crypto surge. Circle’s (CRCL) IPO and partnerships like Apollo’s collaboration with DeFi protocol Morpho represent multi-year commitments, he emphasized.

However, while the assets have been tokenized, the utility aspect is still being developed.

Built, but not yet useful

The last 18 months have seen a significant transition from concept to product. Funds have been tokenized. Stablecoins have become widespread. Infrastructure has been established.

Yet liquidity remains scarce in various tokenized money market funds and real-world assets (RWAs). The tokens are present, but they often act as wrappers rather than transformative instruments.

“They’ve created the token. Now the question is: where can it be employed? Who will accept it? Can it serve as collateral? Can it generate liquidity on a large scale?” de Patoul questioned.

Tokenizing a fund can, paradoxically, isolate it from traditional capital sources without immediately unlocking the advantages of being digital-native. The connection between traditional institutions and on-chain markets, enabling seamless use of tokenized assets across both ecosystems, requires time.

“We’re caught in an intermediary stage,” he noted. “The elements are in place. The next phase involves integrating them to create liquidity on a larger scale.”

This is why he anticipates 2027 and 2028 as the pivotal turning point.

Traditional capital markets are significantly larger than crypto. Even a minor percentage shifting on-chain could surpass crypto’s previous peak.

“By 2027, we could see a scenario where RWAs become as substantial as the entirety of crypto was in the past,” de Patoul stated. “This will unfold over the next two to three years.”

In essence, digital finance may surpass crypto, though not necessarily through a price-driven surge.

“If the utility was fully realized today, we’d likely have a thriving market,” he concluded. “However, it is not. This is a period of transition.”

Keyrock’s Bet

Established eight years ago based on the belief that all assets would ultimately be digital and on-chain, Keyrock is positioning itself as a bridge between traditional and digital finance.

Having its roots in capital markets and market-making, the firm continues to broaden its crypto-native offerings, including derivatives trading, liquidity provision, and customized strategies for investors. In September, it launched Keyrock Asset Management, adding a second dimension to its operations. Assets under management remain modest due to the recent establishment, de Patoul noted.

The broader aim is to evolve from mere tokenization to functionality: ensuring that digital assets are genuinely useful at scale.

“A major focus for us is transitioning from tokenizing products to making those assets functional and tokenizing at scale,” he expressed.

Regulatory clarity remains a critical hurdle. De Patoul refers to the proposed Clarity Act as a “yellow flag,” not due to doubts concerning its eventual approval, but because timing is crucial. “If it is postponed for two years, the impact will be significant,” he stated. “The passage of regulations is a considerable event for institutions. That’s when they can begin investing at scale.”

At present, the price movements in crypto may seem uninspiring. However, from de Patoul’s perspective, the quiet development of digital market infrastructure holds far greater significance than a temporary price rally.

“The foundations are being laid,” he noted, "but the scale has yet to materialize.” This is why he envisions "2027 and 2028 as the true turning point for digital markets.”

Read more: JPMorgan bullish on crypto for rest of year as institutional flows set to drive recovery