Moody’s: Blockchain to Become Finance’s Foundational Layer by 2026

According to Moody’s analysis, blockchain-based technology is evolving beyond a niche innovation to become a “foundational infrastructure layer” for the financial services industry in 2026. The report details a shift where digital finance platforms are now hosting tokenized US Treasurys and structured credit products, creating a more integrated market. Cristiano Ventricelli, VP-Senior Analyst of Digital Assets at Moody’s and a report co-author, emphasizes that technologies like stablecoins and tokenization are actively interconnecting finance areas that were once separate. “Several institutions are positioning to adopt stablecoins for cross-border payments and liquidity management, helping to bridge digital and traditional finance,” Ventricelli told Decrypt.

This integration is fostering what the report terms a “unified digital ecosystem.” Previously disparate sectors such as transition finance, private credit, and emerging markets are becoming more connected through this shared technological base. The practical benefits are clear: asset tokenization is making it “easier and more cost-effective to issue and trade assets,” thereby opening up new opportunities in previously hard-to-access markets. Moody’s predicts that the use of this new technology will pick up further in the coming year, primarily highlighting efficiency gains as the key driver for traditional financial firms.

The report forecasts specific mechanisms through which blockchain technology will deliver tangible value. A primary focus is on the increasing use of tokenized issuance and programmable settlement. These innovations are expected to help financial institutions accelerate liquidity turnover—the process of converting assets into cash—while simultaneously reducing reconciliation work and lowering operational costs. Ventricelli suggests this streamlining of traditional processes is already underway, providing the impetus for more institutions to roll out their own solutions.

This institutional momentum is not merely theoretical. Moody’s points to concrete evidence of growing mainstream financial adoption, such as recent ETF filings and launches. Supporting this view, the annual report from digital asset firm CoinShares revealed that digital investment funds attracted over $47 billion in investment in 2025 alone. As these innovations mature, Ventricelli predicts markets will “increasingly compete on the strength and maturity of their infrastructure layers.” The winning infrastructure, he notes, must be “not only secure and efficient but also highly interoperable,” allowing for seamless integration with legacy systems and narrowing the gap between old and new finance models.

Despite the optimistic outlook for efficiency and integration, Moody’s delivers a stark warning: progress could be significantly slowed by a lack of global regulatory harmony. Ventricelli identifies this as “one of the biggest” challenges, stating that fragmented regulations across countries lead to fragmented infrastructure and make institutions cautious about adopting new digital products at scale. While some regions, most notably the European Union with its Markets in Crypto-Assets (MiCA) regulation, are making strides toward harmonization, the global landscape remains disjointed.

This regulatory fragmentation has direct, negative consequences. According to Ventricelli, it increases operational risks and makes digital assets less liquid. Furthermore, the report cautions that rising adoption may, at least in the short term, increase the exposure to cyberattacks. The core argument is that strong, interoperable infrastructure and broad participation are required for digital finance to reach its full potential. “Without clear cross-border cooperation and regulatory clarity, these advantages may not be fully realized, and the overall growth of digital finance could be limited,” Ventricelli concluded. The message from Moody’s is clear: the technological foundation for a financial revolution is being laid, but its ultimate success hinges on policymakers’ ability to build a coherent global framework around it.