Blockchain technology is moving into a foundational role within the global financial system, according to a new outlook from** Moody’s**, which argues that digital asset infrastructure will increasingly underpin how financial institutions allocate capital, manage liquidity, and operate markets in 2026.
In its digital finance assessment for 2026, the credit rating agency said blockchain-based systems are no longer peripheral innovations but are becoming embedded in the operational frameworks of banks, asset managers, and market intermediaries.
The report points to growing use of distributed ledger technology in areas such as payments, collateral management, and asset issuance, marking a transition from isolated pilots to production-scale deployment.
Moody’s noted that adoption gained momentum in 2025 as stablecoins and tokenized instruments found practical use cases, particularly in payment flows and short-term liquidity management.
That progress, it said, is now laying the groundwork for deeper integration across financial markets.
Tokenization And Programmable Settlement Drive Efficiency Gains
A central theme of the outlook is the role of tokenization and programmable settlement in reducing long-standing inefficiencies across capital markets.
Moody’s expects financial institutions to increasingly rely on tokenized issuance to shorten settlement cycles, improve transparency, and accelerate the conversion of assets into cash.
Digital platforms are already hosting tokenized U.S. Treasurys and structured credit products, and the agency anticipates broader adoption as firms seek to streamline reconciliation processes and lower operational costs.
By embedding settlement logic directly into digital assets, institutions can reduce manual intervention and dependency on multiple intermediaries.
Cristiano Ventricelli, a senior analyst at Moody’s specializing in digital assets, said evolving technologies such as stablecoins, blockchains, and tokenization are beginning to connect segments of finance that historically operated in isolation.
He noted that several institutions are preparing to use stablecoins for cross-border payments and liquidity management, positioning them as a bridge between traditional financial systems and onchain infrastructure.
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According to Ventricelli, asset tokenization is also lowering the cost and complexity of issuing and trading financial instruments, opening access to markets that were previously constrained by operational or geographic barriers.
Infrastructure Competition Replaces Narrative Adoption
As digital finance matures, Moody’s expects competition to increasingly center on the quality and interoperability of infrastructure rather than headline innovation.
Markets and platforms that offer secure, efficient, and interoperable systems capable of integrating with legacy financial architecture are likely to gain a strategic advantage.
This shift reflects a broader pattern observed across recent institutional activity, including the steady expansion of crypto-linked exchange-traded products, increased tokenization pilots by large asset managers, and growing use of stablecoins in treasury operations.
Rather than debating the legitimacy of digital assets, institutions are now focused on how effectively these systems can be integrated at scale.
However, the report also warns that structural challenges could slow progress.
Regulatory fragmentation remains one of the most significant obstacles, particularly as inconsistent rules across jurisdictions make it difficult for institutions to deploy digital products globally.
While regions such as the European Union have advanced more harmonized frameworks, uneven regulation elsewhere raises operational risk and limits cross-border interoperability.
Moody’s also cautioned that rising adoption could increase exposure to cyber threats, especially as digital assets become more interconnected with traditional financial systems.
Addressing security and resilience, the agency said, will be critical as blockchain-based infrastructure takes on a more central role.
Despite these risks, Moody’s argues that digital finance has entered a new phase.
The long-term trajectory, it concludes, will depend on regulatory clarity, cross-border cooperation, and continued investment in infrastructure capable of supporting both traditional and onchain financial activity at scale.
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