Digital Assets Enter Critical Phase: Tokenization Seeking Momentum in 2026-2027

The current crypto market faces an interesting paradox. Although the foundations for exponential growth should already be in place—from regulatory advancements to massive institutional adoption—digital assets like Bitcoin are still treated as high-risk speculative instruments. While the infrastructure to revolutionize the global financial market has largely been built, its practical utility still lags behind, creating a gap between vision and reality.

This perspective comes from Kevin de Patoul, CEO and founder of Keyrock, a crypto investment firm that has positioned itself as a bridge between traditional finance and the digital ecosystem since its founding eight years ago. Through partnerships with banks, asset managers, and exchanges, Keyrock has a unique view of how digital assets are undergoing structural transformation.

Why Are Bitcoin and the Crypto Market Still Considered Risky Assets?

Looking at positive developments over the past six months—from regulatory progress to ongoing institutional capital flows—market logic suggests Bitcoin should be worth much more. But the reality is different.

Bitcoin is currently trading around $70,510, down more than 40% from its all-time high of about $126,000 reached in October 2025. Since early 2026, the world’s largest cryptocurrency has declined about 18%, showing performance far below bullish expectations.

“Increasing macro uncertainty should boost demand for Bitcoin as a hedge,” de Patoul said. “But in reality, this asset is still valued as a speculative instrument—last in, first out in capital allocation.” This phenomenon reflects how institutional investors, despite aggressively allocating capital to Bitcoin over the past 18 months, still approach it from a tactical rather than ideological perspective.

During market stress or when full liquidity is needed, institutional capital flows can be quickly withdrawn. That’s why volatility decreases, trading volume stagnates, and the expected rally fails to materialize—causing crypto to lag behind moments that should be advantageous.

Two Parallel Tracks of Digital Asset Development

However, judging the entire crypto market through a single lens would lead to a false conclusion. De Patoul identifies two largely uncorrelated ecosystems that are developing simultaneously, each with different dynamics and prospects.

First track: Crypto-native assets slowing down

The native crypto ecosystem—DeFi, altcoins, and the well-known hype and liquidity cycles—shows signs of sentiment decline. The rally that once lifted the entire market has subsided. The broad speculative rally is becoming harder to sustain, replaced by what de Patoul calls “highly selective and rational opportunities.”

In other words, the era of “all tokens rising together” has passed. Investors are now more selective, seeking solid fundamentals rather than just hype trends.

Second track: Accelerating digitalization of traditional finance

Meanwhile, the second track—the digitalization of traditional financial markets—continues to show strong momentum. Tokenized money market funds, stablecoins, on-chain financial protocols, and new market infrastructure keep evolving relentlessly.

“When I talk to institutions about their tokenization initiatives, nothing has changed,” de Patoul said. “The enthusiasm level, development speed, and push to migrate remain just as strong. The goal is to make digital assets more accessible to clients and overhaul key parts of the financial markets.”

This institutional commitment is less sensitive to Bitcoin price fluctuations. Stablecoins, tokenized funds, and settlement infrastructure are designed to improve financial efficiency, not chase the next speculative rally. The IPO of Circle and strategic partnerships like Apollo’s collaboration with DeFi protocol Morpho reflect serious long-term investments in the digital asset ecosystem.

Infrastructure Is in Place, But Functionality Still Lags

Over the past 18 months, the industry has made significant leaps from concept to product implementation. Funds have been tokenized. Stablecoins are growing rapidly. Protocols have been launched. Basic infrastructure is available.

But a crucial issue remains open: liquidity remains thin in many tokenized money funds and real-world asset (RWA) markets. These tokens exist, but often serve more as wrappers than transformative instruments.

“The question now is: where can these tokens be used? Who accepts them? Can they be used as collateral? Can they bring liquidity at scale?” de Patoul asks rhetorically.

A paradox emerges: tokenizing a fund can disconnect it from traditional capital pools without immediately unlocking the benefits promised by the digital-native ecosystem. The bridge between traditional institutions and blockchain markets—the ability to seamlessly use digital assets across both worlds—still needs time to mature.

“We are in a transition phase,” de Patoul said. “All the components are in place. The next step is to combine them to deliver liquidity at a meaningful scale.”

Transition Period 2026-2028: When Will Digital Assets Truly Be Useful?

That’s why de Patoul sees 2027 and 2028 as a true inflection point for the digital asset market.

Traditional capital markets have a much larger capitalization compared to the entire crypto ecosystem. Even if only a small percentage of traditional markets migrate to blockchain, the volume generated could surpass previous peaks of the entire crypto market.

“Throughout 2027, we might reach a point where RWA grows to the size of the entire crypto market at its peak,” de Patoul said. “This will continue to develop over the next two to three years.”

In other words, the digitalization of traditional finance is likely to surpass crypto—though not necessarily through dramatic price surges like in previous cycles.

“If utility is fully operational today, the market is probably already in a rapid expansion phase,” he said. “But that hasn’t happened yet. This is the transition phase we are in now.”

Keyrock and Other Institutions: Building Bridges Between Ecosystems

Keyrock’s strategy reflects a deep understanding of these dynamics. Although the company does not issue stablecoins or accept retail deposits, it connects with all key players in the ecosystem—banks, asset managers, issuers, and exchanges—while providing liquidity across various venues.

“Our position gives us a front-row view of this evolution,” de Patoul said. “We can participate in the shift toward digital assets and tokenized infrastructure.”

In September last year, Keyrock launched Keyrock Asset Management, adding a second pillar to their core business. While assets under management are still modest given the recent launch, the long-term vision is to evolve from mere tokenization to real functionality.

“Our main focus is on how to transition from transforming products into digital forms to making those assets truly useful—and doing so at scale,” he explained.

Clear regulation remains a crucial accelerator for this transformation. Legislation like the Clarity Bill is seen by de Patoul as an important signal—not because he doubts final approval, but because timing is critical for institutional momentum.

“If regulation is delayed by two years, it will significantly impact the speed of adoption,” he said. “Legal clarity is when large institutions can confidently make large-scale investments.”

Foundations Are Laid, But Scalability Is Still Pending

In conclusion, current crypto price movements may seem less attractive to short-term traders. But from de Patoul’s and silent institutional players’ perspectives, the ongoing development of digital asset market infrastructure is far more important than fleeting speculative rallies.

“The foundations are being built solidly,” he said. “But true scalability—the massive transformation that will reshape the global financial markets—has yet to come.”

That’s why 2026 is seen not as a breakthrough year, but as a transition year. The year when infrastructure reaches maturity, but utility is still in final stages. And why 2027 and 2028 are viewed as periods when digital assets will surpass expectations—not because of speculative surges, but due to fundamental transformation in how the global financial markets operate.

Related Information: As the market continues to adjust, Bitcoin remains relatively resilient with stable movements. Altcoins including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) follow with approximately 5% appreciation over the same period. Crypto mining stocks also strengthen their position amid broader equity market recovery, with the S&P 500 and Nasdaq each rising about 1.2%.

Market analysis indicates that the next move for digital assets will depend on the stability of global geopolitical conditions and ongoing institutional capital flows. If institutional momentum remains strong, retesting the $74,000–$76,000 range for Bitcoin is a realistic scenario. Conversely, capital withdrawals could pull prices back toward the mid-$60,000 range.