The significance of transitioning to 24/7 capital markets in 2026 — How tokenization is driving a structural transformation among institutional investors

The time constraints that once separated cryptocurrencies from traditional financial markets are now beginning to disappear. With the acceleration of tokenization and digital payments, 2026 will mark the year when capital markets fully transition into a 24/7 operation era. The significance of this transformation goes beyond merely extending business hours. It represents a fundamental structural shift that will challenge the operational frameworks of institutional investors, capital allocation strategies, and risk management methods.

Why a 24/7 Market Is Inevitable—The Payment Revolution Driven by Tokenization

Currently, the capital markets are still operating based on assumptions over a century old. Trading hours are limited, settlement takes several days, and collateral management relies heavily on manual processes. However, this system is rapidly changing.

Tokenization involves converting assets such as stocks, bonds, and real estate into electronic data on the blockchain. This technology will shorten settlement cycles from “several days” to “a few seconds.” According to a joint report by Ripple and BCG, the market for tokenized assets is projected to grow to $18.9 trillion by 2033, representing a rapid expansion at a compound annual growth rate (CAGR) of 53%.

This figure may even be conservative. Over the past 30 years, efforts to improve market efficiency—such as electronic trading, algorithmic execution, and real-time settlement—have been ongoing. Tokenization is the next phase, likely following a similar S-curve. With a 52% annual growth rate compounded, it is theoretically possible that by 2040, 80% of global assets could be tokenized.

Dramatic Improvements in Capital Efficiency—Liquidity Changes Enabled by 24/7 Operations

Transitioning to a 24/7 market will fundamentally alter how institutional investors allocate capital. Currently, entering new asset classes takes 5 to 7 days due to onboarding, collateral placement, and risk assessment processes. Additionally, settlement cycles like T+2 (settlement two business days after trade date) and T+1 tie up capital, burdening the entire system.

If tokenization becomes a reality, these constraints will vanish. Collateral can be exchanged in highly liquid forms, and settlements will occur within seconds. Institutional investors will be able to manage stocks, bonds, and digital assets within a unified platform, continuously rebalancing their portfolios. The concepts of weekends and holidays will disappear, replaced by a market that is not “closed” but “constantly rebalanced.”

This shift will also generate significant secondary effects. Capital previously tied up in traditional settlement cycles will be freed, dramatically increasing overall liquidity. Stablecoins and tokenized money market funds will facilitate transfers across different asset classes, unifying previously fragmented markets. Order books will deepen, trading volumes will increase, and settlement risks will decrease—creating a cycle that accelerates turnover rates for both cryptocurrencies and fiat currencies.

Regulatory Trends Indicating Feasibility—Infrastructure Is Already Moving

Beyond theoretical possibilities, regulatory developments also suggest the feasibility of a 24/7 market. The U.S. Securities and Exchange Commission (SEC) has approved the development of a securities tokenization program by the Depository Trust & Clearing Corporation (DTCC), which will record ownership of stocks, ETFs, and government bonds on the blockchain.

Interactive Brokers (IBKR) has already launched a service allowing clients to instantly deposit funds into securities accounts using USDC at any time. The company also plans to support Ripple’s RLUSD and PayPal’s PYUSD, with multiple stablecoin ecosystems growing in parallel.

These infrastructure developments are not merely experimental but indicate a move toward full-scale operation. Institutions that begin building a 24/7 operational framework before the regulatory framework is fully established will be well-positioned to respond swiftly once the new paradigm is solidified.

Three Challenges Institutional Investors Will Face in 2026

2026 will be the “second year” for cryptocurrencies. If 2025 was a “year of new entrants,” filled with hopes for structural progress amid regulatory ambiguity, 2026 will be a year to leverage that foundational knowledge toward building and specialization. However, during this process, institutional investors and policymakers will face three critical challenges.

Legislation and Regulatory Alignment. The CLARITY Act faces a difficult path, with conflicts over stablecoin rewards complicating its passage. The reluctance of companies like Coinbase to support major crypto legislation stems from the difficulty in reaching compromises on these details. To advance key legislation, it will be necessary to narrow disputes and show willingness to make concessions.

Building Distribution Channels. For cryptocurrencies to be accepted at the institutional level, meaningful distribution channels beyond proprietary trading desks are essential. Reaching retail, mass affluent, high-net-worth individuals, and institutional investors with incentives similar to other asset classes is crucial. Without this, institutional acceptance will not translate into tangible performance improvements.

Focus on High-Quality Assets. As evident from the relative performance analysis of CoinDesk’s Top 20 versus the rest, larger and higher-quality digital assets continue to dominate. The top 20 currencies, smart contract platforms, DeFi protocols, and infrastructure projects provide diversified exposure and access to new themes without cognitive overload.

Gold and Bitcoin—Signals from a New Correlation

While gold continues to hit record highs, Bitcoin (BTC)’s 30-day rolling correlation has for the first time turned positive at 0.40 in 2026. This shift is significant. Traditionally, Bitcoin had a low correlation with conventional safe assets like gold, but now it is beginning to react similarly to macroeconomic factors.

From a technical perspective, Bitcoin remains in a heavy trading pattern, declining about 1% weekly and not yet recovering the 50-week EMA (simple moving average). Key questions are whether the sustained upward trend in gold will also lift Bitcoin long-term, or if Bitcoin’s price weakness will reaffirm its decoupling from traditional safe assets.

The Evolution of NFT Strategies as Seen in Pudgy Penguins

The NFT market is also undergoing structural change. Pudgy Penguins is evolving from a simple digital asset into a full-fledged multi-platform consumer IP. The project employs a strategy of acquiring users through mainstream channels and then gradually onboarding them into Web3, building a multi-faceted ecosystem that includes physical merchandise (over $13 million in retail sales, over 1 million units sold), gaming and experiences (Pudgy Party has over 500,000 downloads in two weeks), and widely distributed tokens (airdropped to over 6 million wallets).

While the market currently values Pudgy Penguins higher than comparable traditional IPs, sustained success depends on retail expansion, gaming adoption, and deepening token utility.

Preparations Needed for 2026—Transition to 24/7 Readiness

The importance of 2026 lies not in the arrival of a 24/7 market itself but in whether institutional investors can adapt to it.

Departments such as risk management, finance, and settlement operations will need to shift from traditional batch processing to continuous processes. This involves not just workflow changes but also ensuring 24-hour collateral management, real-time AML/KYC, integrated digital custody, and incorporating stablecoins as functional, liquid settlement instruments.

Institutions capable of continuously managing liquidity and risk will gain a cash flow advantage that others cannot structurally match. Conversely, those delaying this transition risk being left behind in the new paradigm.

The evolution of capital markets has always aimed toward broader access and lower friction. The realization of a 24/7 market through tokenization and stablecoins is the inevitable next step. The question for 2026 is not whether markets will operate 24/7, but whether your institution is prepared to do so.