A year ago, we wrote about Davos 2025 as a "watershed moment" for crypto. Twelve months later, that assessment looks conservative. The World Economic Forum 2026 has confirmed what we suspected: the debate is no longer whether digital assets belong in the financial system, but how quickly they can be integrated.
The Agenda Tells the Story
In 2025, Davos featured a single crypto panel: "Crypto at a Crossroads." This year, the WEF has dedicated two high-level sessions specifically to digital assets: "Is Tokenization the Future?" and "Where Are We on Stablecoins?" The question marks are almost rhetorical at this point.
More telling than the session titles is who's in the room. Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire are sharing stages with the Governor of the Central Bank of France and the CEO of Euroclear. These aren't crypto conferences—these are the rooms where global financial infrastructure gets negotiated.
The GENIUS Act Effect
The regulatory landscape has transformed since last January. The GENIUS Act is now law, establishing the first comprehensive US framework for stablecoins. Ripple CEO Brad Garlinghouse put it directly: the Act has "unlocked a lot of activity."
For market makers, the impact is tangible. Stablecoin volumes have surged 138% above 2025 monthly averages. The average deposit size has grown 51%. These aren't speculative flows—institutions are treating stablecoins as global, instant payment rails. The zerohash 2026 Stablecoin Momentum Report confirms what we're seeing: stablecoins have moved from crypto trading infrastructure to core financial infrastructure.
The use cases have expanded dramatically: brokerage funding, cross-border settlement, global payroll, treasury operations. Every one of these applications requires deep, reliable liquidity. That's where we come in.
Armstrong vs. The Central Bankers
Yesterday's heated exchange between Brian Armstrong and France's central bank governor was the kind of debate that would have been unthinkable two years ago—not because of the disagreement, but because of the venue. When the CEO of a crypto exchange is correcting a central bank chief on Bitcoin's issuance mechanics at Davos, you know the power dynamics have shifted.
Armstrong's three priorities for 2026 align precisely with our market outlook: advancing crypto market legislation, promoting tokenization, and engaging world leaders on economic freedom through expanded capital market access. These aren't fringe positions anymore. They're the mainstream institutional agenda.
Tokenization Enters Production
The tokenization conversation has matured dramatically. Last year's discussions were conceptual. This year's panels are focused on operational challenges: governance models, custody arrangements, market infrastructure requirements.
The pilots are becoming products. Swiss banks completed proof-of-concept for a Swiss franc deposit token. European banks announced a euro-denominated stablecoin consortium. UBS and global partners are developing a G7-currency stablecoin. These aren't experiments—they're launches.
For LQD Markets, tokenization means one thing: new markets requiring liquidity. Every tokenized asset class—bonds, money markets, real estate, commodities—will need market makers who understand both traditional finance mechanics and blockchain infrastructure. The firms positioned at that intersection will define the next decade of trading.
All-Time Highs Ahead?
Garlinghouse went on record predicting crypto markets will reach all-time highs this year. His reasoning: "major financial institutions showing interest in crypto is a massive sea change" that isn't yet priced into markets.
We share his structural optimism, though as market makers, we're focused less on price targets and more on what rising institutional participation means for market structure:
- Deeper order books: More sophisticated counterparties mean larger block sizes and tighter spreads.
- Extended trading hours: Traditional institutions are building toward 24/7 operations. They'll need partners who already operate that way.
- Cross-asset integration: As tokenization bridges traditional and crypto assets, liquidity providers must span both worlds.
The Year Ahead
President Trump's Davos address reiterated his intention to make the US the "crypto capital of the world." Whether you view that as policy or politics, the effect on capital flows is real. Regulatory arbitrage is shifting in America's favour, and global institutions are repositioning accordingly.
Davos 2025 asked whether crypto was ready for institutions. Davos 2026 is asking whether institutions are ready for crypto. For market makers who've spent years building the infrastructure, the answer is clear: we've been ready. Now the flow begins.
The debate has shifted from "if" to "how." The legislation is passed. The institutions are mobilising. 2026 is the year theory becomes practice.