Digital assets are entering a pivotal phase of maturity, with 2026 expected to mark a decisive year for institutional adoption, tokenisation and the mainstreaming of stablecoins, according to investment firm MHC Digital Group.
Edward Carroll, head of global markets and corporate finance at MHC Digital, says crypto markets are underpinned by powerful structural tailwinds that position the asset class for sustained long-term growth.
According to MHC Digital Group, three themes will define the next phase of crypto’s evolution: stablecoins, tokenisation and institutionalisation.
Bitcoin outlook: structural tailwinds strengthen
“Bitcoin enters 2026 with strong structural tailwinds,” Carroll said. “We expect a meaningful decoupling from traditional risk assets as it increasingly transitions toward a store-of-value trade.”
He noted that accelerating institutional adoption, combined with a tightening demand-supply dynamic, is reshaping Bitcoin’s market profile.
“Our conviction remains unchanged: Bitcoin is on track for significant price appreciation, and we maintain our 2030 target of US$1 million,” Carroll said.
Institutional adoption gathers momentum
Carroll highlighted regulation and asset allocation as key drivers of the next growth phase. He said clearer regulatory frameworks will be critical in unlocking broader institutional participation.
“The US must pass the Clarity Act, and Australia needs to finalise its regulatory framework with a clear implementation roadmap,” he said. “Institutional adoption will continue to gather momentum in the year ahead. Clear regulation is essential.”
MHC Digital expects further high-profile allocations from sovereign wealth funds, global asset managers and corporate treasuries in the year ahead, reinforcing Bitcoin’s role as a strategic institutional asset.
Stablecoins and tokenisation move into the mainstream
Beyond Bitcoin, Carroll identified stablecoins as a major growth engine for 2026, driven by real-world utility rather than speculation. He believes there will be significant mainstream uptake as a core component of global financial infrastructure.
“Adoption will be driven by payments, foreign exchange, and the rapid expansion of tokenised products such as bonds, securities, and ETFs,” he said.
He noted that stablecoins play a critical role in enabling atomic settlement and are becoming essential infrastructure for tokenised financial markets.
“Stablecoins are essential for atomic settlement in this evolving landscape, and we expect them to become a mainstream treasury and payments tool globally.”
Digital assets are no longer a fringe concept, according to Carroll, and are instead now becoming embedded in the fabric of global finance.
He concluded that regulation, institutional flows and technological innovation will shape the next phase of growth.
“We believe 2026 will mark a pivotal year in the institutionalisation of crypto,” Carroll said.
