Moody's: Blockchain has become a core part of the global financial infrastructure

Source: Yellow Original Title: When Moody’s Calls Blockchain “Core Infrastructure,” the Experiment Is Over

Original Link: According to Moody’s latest outlook report, blockchain technology is becoming a key player in the global financial system, with digital asset infrastructure increasingly supporting financial institutions in capital allocation, liquidity management, and market operations by 2026.

In the assessment of digital finance in 2026, the rating agency states that blockchain-based systems are no longer peripheral innovations but are integrating into the operational frameworks of banks, asset management firms, and market intermediaries.

The report highlights the increasing use of distributed ledger technology in areas such as payments, collateral management, and asset issuance, marking a shift from isolated pilot projects to production-scale implementation.

Moody’s emphasizes that adoption gained momentum in 2025, when stablecoins and tokenization tools found practical applications, especially in payment flows and short-term liquidity management.

The agency notes that this progress is laying the foundation for deeper integration of financial markets.

Tokenization and Programmable Settlements Drive Efficiency Improvements

A central theme of the outlook report is the role of tokenization and programmable settlements in reducing historic inefficiencies in capital markets.

Moody’s expects financial institutions to increasingly adopt tokenized issuance to shorten settlement cycles, enhance transparency, and accelerate asset-to-cash conversion.

Digital platforms have already hosted tokenized U.S. Treasuries and structured credit products, and the agency anticipates broader adoption as companies seek to streamline reconciliation processes and reduce operational costs.

By embedding settlement logic directly into digital assets, institutions can reduce manual intervention and reliance on multiple intermediaries.

Cristiano Ventricelli, Senior Analyst at Moody’s Digital Assets, states that evolving technologies such as stablecoins, blockchain, and tokenization are beginning to connect historically isolated segments of finance.

He points out that multiple institutions are preparing to use stablecoins in cross-border payments and liquidity management, positioning them as bridges between traditional financial systems and on-chain infrastructure.

According to Ventricelli, asset tokenization is also lowering the costs and complexities of issuing and trading financial instruments, providing access to markets previously limited by operational or geographical barriers.

Infrastructure Competition Replaces Narrative-Driven Adoption

As digital finance matures, Moody’s expects competition to focus more on the quality and interoperability of infrastructure rather than on eye-catching innovations.

Markets and platforms that offer secure, efficient, and interoperable systems capable of integrating with traditional financial architectures may gain strategic advantages.

This shift reflects broader patterns observed in recent institutional activity, including the continued expansion of listed products related to crypto assets, increased tokenization pilots by large asset managers, and growing use of stablecoins in financial operations.

Institutions are no longer debating the legality of digital assets but are instead focusing on how effectively these systems can scale and integrate.

However, the report also warns that structural challenges could slow progress.

Regulatory fragmentation remains one of the most significant obstacles, especially as inconsistent rules across jurisdictions make it difficult for institutions to deploy digital products globally.

While regions like the EU have made progress toward more coordinated frameworks, regulatory disparities elsewhere increase operational risks and limit cross-border interoperability.

Moody’s also warns that increased adoption could raise exposure to cyber threats, especially as digital assets become more interconnected with traditional financial systems.

The agency states that addressing security and resilience will be fundamental as blockchain-based infrastructure takes on a more central role.

Despite these risks, Moody’s maintains that digital finance has entered a new phase.

The report concludes that the long-term trajectory will depend on regulatory clarity, cross-border cooperation, and sustained investment in infrastructure capable of supporting both traditional and on-chain financial activities at scale.