While crypto prices continue to struggle, stablecoins and tokenization continue to be leading Defi trends.
Most large trap fi firms are exploring their own stablecoins, and stablecoins processed around $10 trillion in volume in January, which was reportedly more than Mastercard.
Now the big players are also integrating with tokenization.
They're using blockchain to scale payments and move equities on chain, which could lead to a future marked by 24/7 trading. the SEC is working on clarity for both stable coins and tokenization, but define that are still waiting for Congress to do more.
Joining us this morning to help us dissect what's happening in terms of stable coins is one Susman, president and CEO of.
Good morning Glenn.
Thank you so much for joining me.
Well, first and foremost, there's been a lot of volatility to kick off the final trading week of February.
So first tell us what's the institutional digital asset landscape look like right now and what has changed so far in 2026.
Uh, that's a great question.
I think the biggest shift over the past year has been on the regulatory front.
Uh, the passage of the Genius Act marked the first federal framework for stablecoins, and it changed the tone of the conversation at digital asset institutions and traditional finance, uh, from if to when and how.
Stablecoins have grown from $200 billion in January 2025 to almost $300 billion in January 2026, about 95% of which are USD denominated.
And just last week, uh, we saw informal guidance from the SEC's Hester Pierce that will enable broker dealers to treat stablecoins as near cash equivalents, with only a 2% haircut, which will provide further tailwinds to institutional adoption.
We're also seeing now broader efforts to bring regulatory focus to bear like the Clarity Act, which is aimed at defining how digital assets fit within existing regulatory jurisdictions.
Uh, Once these formal frameworks begin to emerge, institutional confidence typically follows.
You bring up an important point because I think hindsight is always 20/20 and when we're looking at 2026, there are a lot of expectations when it comes to the regulatory framework unlocking capital from the bigger players.
So what do you expect to see in 2026 and what is your timeline?
Um, well, we're seeing a lot of innovation right now around stablecoin enablement, uh, tokenized bank deposits, cross-border payments, and collateral mobility, as well as with tokenized money market funds and treasury funds.
Uh, in 2025, uh, Tacit launched, um, the, the Link platform or helped launch the Link platform, uh, which is a first of its kind real-time settlement and collateral ecosystem designed specifically for digital asset institutions.
It's powered by tokenized treasuries and our patented yielded transit technology, which enables real-time accrual and distribution of interest on chain.
Um, I do think that, uh, adoption is going to take time.
Uh, larger institutions don't typically just flip a switch, they integrate new systems carefully.
Uh, regulatory clarity helps, but alignment of market interests also matters.
Uh, as we've seen with stablecoins, there's still a lot more wood to chop to ensure broad incentive alignment between banks, issuers, and other market participants.
Yeah, and I do wanna ask you about what's happening when it comes to institutional adoption since that has been a key theme as we kicked off this year.
So, given your conversation with stakeholders out there, what are you actually seeing when it comes to the bigger institutions?
I think they're building always on real-time tokenized financial solutions that can integrate and scale safely with existing capital markets infrastructure.
Uh, to date, in prior iterations, always on digital asset infrastructure was contained within the crypto universe and DeFi.
Uh, what we're seeing now is that these digital asset institutions and, uh, digital assets and tokenization efforts are crossing over into traditional and regulated financial institutions at a much greater pace.
Um, but incorporating these real-time workflows into mission critical infrastructure is a big lift.
It's not going to happen overnight.
Uh, an interesting analog is that the cable industry spent almost $250 billion over the course of two decades upgrading from linear to video on demand to streaming, and I believe we're now seeing that kind of upgrade within banking and finance.
Uh, it should happen more quickly, uh, as financial systems are more software-driven, but we still have.
2030, sometimes even 40 years of legacy financial infrastructure that needs to be modernized, so it's a big lift. and Glenn finally before I let you go, of course we're hearing about banks as well as traditional financial firms and even major retailers embracing stable coins.
So what does this mean for American consumers out there and who are wondering what this actually means for them.
I think stablecoins are going to continue to penetrate into commercial use cases.
There's currently a lot of momentum behind adoption, and you're seeing a lot of financial institutions work on enablement.
I do think that there remains to be areas of refinement in the alignment between banks and stablecoin issuers, but once that gets resolved, I believe that there will be a healthy and resilient stablecoin landscape that helps uh service uh domestic consumers as well as international opportunities.
Um, it's important to remember that this isn't about replacing or disrupting our global financial system.
It's about upgrading it.
Yeah, and before I let you go, while I have you here, I do want to ask you about tokenization.
What do you think this looks like not just heading into the rest of this year, but also beyond.
Well, here at TI, uh, we've been operating real-time blockchain infrastructure inside regulated financial institutions for years.
Uh, we've seen what works at scale, and we believe the next phase of adoption will be defined by digital, uh, innovative digital asset solutions that ensure compliance, uh, enhance efficiencies, and protect privacy, but also reinforce, uh, systemic stability, and that's where we're focused.
OK, Glenn, well, we will have to leave it there for today, but thank you so much for joining us and thank you so much for sharing your insights.
Thank you.
