What Will Crypto Look Like in 2026? Insights from Pantera Capital’s Paul Veradittakit

Paul Veradittakit of Pantera Capital forecasts a significant increase in real-world asset (RWA) tokenization by 2026, alongside advances in AI-driven blockchain security. These developments are expected to facilitate greater institutional adoption by addressing long-standing barriers related to asset tangibility and security risks. Understanding these trends is critical as the crypto market seeks closer integration with traditional finance and regulatory frameworks.

What happened

Paul Veradittakit, a partner at Pantera Capital, outlined key predictions for the crypto landscape in 2026, emphasizing two main drivers: the rise of RWA tokenization and AI-enhanced security innovations. According to Veradittakit, tokenizing real-world assets—such as real estate, commodities, or other tangible investments—will create more regulated and transparent investment vehicles, making crypto assets more accessible and appealing to institutional investors. This perspective is supported by recent filings from major ETF issuers like Grayscale and Bitwise, which reveal a strategic push towards products incorporating tokenized assets and improved security protocols.

Complementing this, Veradittakit highlighted AI-driven security as a critical development expected to strengthen blockchain infrastructure. Enhanced AI tools are anticipated to mitigate security risks, a major concern for institutions wary of digital asset vulnerabilities. This view aligns with findings from PwC’s 2024 report on AI in cybersecurity, which documents growing integration of AI technologies in protecting digital assets, including blockchain networks.

Independent research from Deloitte’s 2024 Global Blockchain Survey corroborates these trends, identifying RWA tokenization as a key factor in increasing institutional crypto engagement. Deloitte notes that regulatory clarity and technological maturity are essential enablers for this process. Both Deloitte and PwC reports reinforce Veradittakit’s outlook by highlighting the convergence of technological innovation and evolving regulatory environments as central to broader institutional participation in crypto markets.

Interpretations from Pantera Capital posit that RWA tokenization serves as a bridge between traditional finance and crypto, potentially reducing volatility and regulatory uncertainty. Similarly, AI-driven security innovations are seen as a direct response to institutional concerns about compliance and risk management. However, alternative viewpoints acknowledge that regulatory fragmentation across jurisdictions could temper the pace of institutional uptake despite these technological advancements.

Why this matters

The anticipated growth of RWA tokenization and AI-enhanced security carries structural implications for both crypto markets and traditional finance. Tokenization of tangible assets could transform the nature of crypto investments by providing more familiar and regulated exposure, thereby lowering barriers for institutional investors who have historically been cautious due to volatility and regulatory ambiguity. This could lead to increased liquidity and a more stable investor base within crypto markets.

Simultaneously, AI-driven security improvements address one of the most persistent obstacles to institutional adoption: the risk of hacks, fraud, and operational failures. Enhanced security protocols powered by AI may improve trust and compliance with regulatory standards, potentially accelerating integration between legacy financial systems and blockchain technology.

Together, these developments suggest a gradual evolution of crypto from a largely speculative asset class toward a more institutionalized sector with regulated, tangible investment products and robust security frameworks. This shift has potential implications for regulatory policy, market structure, and the competitive dynamics between traditional financial institutions and crypto-native firms.

What remains unclear

Despite these insights, several critical questions remain unresolved. The exact regulatory frameworks that will govern RWA tokenization across different jurisdictions by 2026 are not detailed in the available sources. The timing, scope, and standardization of AI-driven security innovations within blockchain ecosystems also remain unspecified, leaving uncertainty about how these technologies will be audited and accepted by institutional risk management.

Furthermore, there is no quantitative data or forecasts regarding the volume or market valuation of tokenized real-world assets expected by 2026. The impact of RWA tokenization on market liquidity and volatility is also not empirically addressed. Additionally, the balance traditional financial institutions will strike between integrating legacy infrastructure and adopting blockchain-based solutions is an open question, influenced by factors beyond technology and asset tokenization.

What to watch next

Regulatory developments and harmonization efforts related to RWA tokenization across major jurisdictions, which will shape institutional participation.
Disclosures and product launches by ETF issuers such as Grayscale and Bitwise that incorporate tokenized assets and enhanced security features.
Advancements and adoption rates of AI-driven blockchain security tools, including their standardization and auditability within institutional frameworks.
Reports and surveys from independent consultancies like Deloitte and PwC tracking blockchain adoption and AI integration progress.
Institutional investor engagement metrics and market data reflecting the liquidity and volatility changes linked to tokenized real-world assets.

The evolving landscape of crypto in 2026 is poised at the intersection of technological innovation and regulatory adaptation. While the rise of RWA tokenization and AI-driven security may foster increased institutional adoption, significant uncertainties around regulation, technology deployment, and market dynamics remain. Clarifying these factors will be essential to understanding how deeply crypto integrates with traditional finance in the coming years.

Source: https://www.coindesk.com/coindesk-indices/2025/12/17/crypto-for-advisors-predictions-for-2026. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.