Core Insights - Digital assets are transitioning from an experimental phase to a fundamental component of financial infrastructure, with large institutions increasingly utilizing public blockchains [1] - The concept of "hybrid finance" is emerging, characterized by the integration of crypto systems with traditional finance to enhance market operations [1] Integration of Digital Assets - Digital assets are becoming part of the traditional economy, with expectations for 2026 to see further consolidation into the real economy [2] - The report highlights the growing use of stablecoins and tokenized assets, particularly in private credit and U.S. Treasuries, along with an increase in tokenized funds and deposits [2] Bitcoin Mainstreaming - Bitcoin's adoption is accelerating, evidenced by over $90 billion in U.S. spot ETF inflows and more than one million BTC held by corporate treasuries across 190 public companies [3] - The asset management firm anticipates broader access to Bitcoin through wealth platforms and retirement accounts, as well as more direct institutional settlements from custody banks [3] Bitcoin Price Projections - Three potential price trajectories for Bitcoin are outlined: a soft landing could push prices above $150,000, steady growth may result in a range of $110,000–$140,000, while stagflation or recession could lead to short-term price declines before recovery [4] - Competition to establish a settlement layer for hybrid finance is intensifying, with Ethereum remaining a key player despite emerging rivals [4] Financial System Transformation - The year 2026 is expected to witness a financial system rearchitecting around public blockchains and digital settlement layers [5] - The report notes increasing regulatory divergence across regions, including Europe's MiCA framework, U.S. stablecoin policies, and Asia's Basel-style approaches, alongside structural shifts such as miners transitioning to high-performance computing and AI infrastructure [5]