- Digital assets will drive efficiency and innovation in the global financial space.
- Tokenized issuance is expected to accelerate liquidity and reduce costs.
- The lack of a harmonized regulatory framework is a major challenge.
As the global financial world continues to progress, blockchain technology is emerging as a key player. According to a recent report by Moody’s, a renowned rating agency, blockchain is poised to revolutionize the financial services industry in 2026.
In a bold prediction, the report asserts that digital finance will become a “foundational infrastructure layer” this year. This statement underscores the growing influence of blockchains and their underlying technology in the rapidly evolving financial space.
It is also worth noting that the boundaries between traditional finance (TradFi) and digital finance are gradually fading as both ecosystems are increasingly working together through strategic collaborations. With stablecoins and tokenized assets already proving their potential and diverse use cases, the blockchain industry is poised to lead the financial space.
How Blockchain Will Revolutionize Global Finance?
In the Digital Finance Outlook Report 2026, Moody’s provided a detailed analysis of the potential of blockchain technology to redefine the global financial landscape. The report projects that the underlying technology of digital assets will have a significant impact on traditional financial firms’ capital allocation and market operations.
The report further highlighted the remarkable growth of stablecoins and tokenized assets in 2025. The researchers predict the further integration of these assets in 2026, driven by the adoption of blockchain technology and other innovations. They also highlighted the potential of tokenized issuance and programmable settlement to transform financial institutions’ operations. They added, “Digital finance platforms now host tokenized US Treasurys and structured credit products. Use of the new technology will pick up further in the coming year, and will highlight efficiency gains, although operational, regulatory, and cyber risks remain.”
Interestingly, Senior Analyst Cristiano Ventricelli stressed the capability of stablecoins and tokenization to “interconnect” the gaps in the financial space. He noted,
“Several institutions are positioning to adopt stablecoins for cross-border payments and liquidity management, helping to bridge digital and traditional finance. Meanwhile, asset tokenization is gaining traction, making it easier and more cost-effective to issue and trade assets, and opening up new opportunities in markets that were previously hard to access.”
According to the analyst, blockchain technology has already been integrated into the traditional financial system through multiple collaborations. These developments, he believes, will drive more conventional platforms to adopt blockchain. He added,
“As these innovations mature, the markets will increasingly compete on the strength and maturity of their infrastructure layers that are not only secure and efficient but also highly interoperable, allowing for seamless integration with existing financial systems and narrowing the gap between old and new finance models.”
Regulatory Hurdles Ahead?
While digital finance is about to enter 2026, possibly embracing a new phase, Moody’s researchers expect certain challenges. One of the major obstacles is the regulatory uncertainty. The analysts highlight the lack of a harmonized regulatory framework across countries. This results in fragmented infrastructure, sparking caution.
“One of the biggest is the lack of harmonized regulations across countries, which leads to fragmented infrastructure and makes institutions cautious about adopting new digital products at scale,” stated the researcher.
To overcome these challenges, it will be critical for global regulators to work together in establishing a harmonized framework. If such an initiative is taken, it will help blockchain technology to further solidify its position in the financial ecosystem.
