Crypto’s new-found prominence

PwC has said digital assets are now an integral part of financial systems. Syed Rahman outlines the argument.

Crypto has now reached a point of no return in the financial world, according to PwC.

The multinational professional services company, often referred to as one of the Big Four accounting firms, has stated that when it comes to digital assets, “institutional participation has passed the point of no return.”

It says this is down to the level of adoption and integration of digital assets by banks, asset managers and large corporations. This, according to PwC, is no longer an “optional or peripheral” process.

The claim is made in a PwC company report on global cryptocurrency regulation for 2026. It says that digital assets are no longer confined to trading but are increasingly integrated into payments, interbank settlements, treasury operations, and balance management. Added to this, traditional financial institutions’ growing use of stablecoins, tokenised funds and other blockchain products has given the world of digital assets greater prominence.

Relationship

The increasingly close relationship between the digital sector and the more traditional finance world has given the former a higher standing. This comes at a time when the global regulatory environment is no longer the obstacle it has previously been to cryptocurrency adoption by the larger, more conventional companies and financial institutions.

PwC’s report states: “The regulatory momentum is accelerating, along with the pace of institutional adoption. What is emerging now provides not just clarity but also confidence for institutions to innovate, scale, and integrate digital assets into the core of the global financial system.’’

The report was published as news came to light that Swiss bank UBS, which has tended to take a very cautious stance on crypto, is seeking partners to begin crypto trading services. This was followed by a report from financial firm River that said that 60% of the biggest banks in the US have either begun or announced digital assets services.

As more regulations and protections for consumers are put in place, we can now see institutions that have previously maintained a very cautious approach entering this space. As digital assets continue to gain traction and popularity, less reluctance to become involved with them can be expected.

At the same time, consumers are gaining a better understanding of what it means to invest in different forms of digital assets; particularly the inherent risks associated with them. Growth periods tend to come when large, well-known assets do well and stagnation sets in when they do poorly. Any developments – either positive or negative – are likely to affect the way that traditional institutions assess risk and ultimately decide whether or not to become involved with digital assets.