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KEY TAKEAWAYS
- Real-world asset tokenisation is moving from proof-of-concept to broader adoption, with regulated exchanges and infrastructure development central to this transition.
- Stablecoins are gaining regulatory attention, with jurisdictions establishing clear oversight to ensure transparency, prudent reserve management and investor confidence.
- DeFi regulation is changing, with regulators exploring models that balance innovation with accountability.
A more strategic phase for digital assets
The digital asset sector is moving decisively from speculative cycles to regulated, institutional adoption. The focus for 2026 is expected to be infrastructure: market venues capable of listing and settling tokenised instruments, credible stablecoin regimes that can support payments and settlement, and custody arrangements that strive to protect client assets in insolvency.
We have broken down some of the main themes that have emerged in the digital assets space as trends to watch in the coming months and years.
Tokenisation moves beyond proof of concept
Tokenisation continues to dominate conversations across jurisdictions. From tokenised funds and debt instruments to real-world asset (RWA) tokenisation, the market is growing - but clients still face questions around scale and liquidity.
We are watching how tokenised products transition from proof-of-concept to broader adoption. Central to this is the development of regulated exchanges and infrastructure capable of listing tokenised securities, yield coins and stablecoins. As institutional interest grows, clients want clarity on how tokenised products will achieve reach and distribution across global markets.
Jurisdictions like the Cayman Islands and the BVI are strengthening their regulatory frameworks to support tokenised securities. While Bermuda is currently engaged in a formal consultation with industry regarding proposed regulatory enhancements for asset tokenization, in order to streamline tokenised issuances, including blockchain-based share registers.
Across the board, the promise behind tokenisation is clear, but the challenge remains translating technical innovation into tangible investor access and liquidity.
Stablecoin regulation gathers momentum
Stablecoins are climbing the regulatory agenda worldwide, with some jurisdictions already operating dedicated regimes and others moving quickly to establish clear oversight. Our lawyers are closely monitoring if and how leading investment hubs may implement or refine stablecoin-specific regimes to ensure transparency, prudent reserve management and investor confidence.
As more institutional players enter the market, tougher regulatory standards for stablecoin issuers will be critical for credibility and compliance. We are constantly advising clients on how evolving frameworks impact issuance, reserve structuring and compliance obligations, so new projects align with both domestic and international expectations.
DeFi regulation: finding balance
Decentralised finance (DeFi) remains a regulatory frontier. We're tracking how regulators globally are approaching DeFi oversight, exploring models that balance innovation with accountability.
In some jurisdictions, regulators are considering light-touch approaches focused on reporting obligations rather than full licensing. Others are weighing how decentralised activities - such as decentralised exchanges or DAOs - fit within existing financial services laws.
Clients are increasingly asking how DeFi platforms can remain compliant without compromising decentralisation. We are looking at the risks, opportunities and emerging guidance, helping clients find paths forward in a space where rules are still being written.
Custody and asset protection under scrutiny
Custody continues to be a key area of focus for institutional players. Clients want assurance around how assets are held, how custody structures achieve bankruptcy remoteness and how investor assets remain protected under insolvency scenarios.
Jurisdictions like Bermuda are leveraging tailored legal structures, such as segregated accounts and incorporated segregated accounts, to meet these needs. Meanwhile, the Cayman Islands and BVI are strengthening their frameworks to support custodial arrangements that align with international best practices.
We are advising clients across the lifecycle, from selecting the right custody models to ensuring governance, contractual protections and regulatory compliance are in place.
Regulatory convergence on the horizon?
Fragmentation remains a reality in the digital asset sector, with clients often handling a patchwork of regulatory regimes. However, we remain at the centre of growing discussions around cross-border collaboration and potential "passporting" of licenses between jurisdictions.
Clients are eager to see more global alignment that would reduce friction for cross-border operations. While regulatory harmonisation remains an ambition rather than a reality, the direction of travel is clear: jurisdictions are under pressure to coordinate efforts or risk losing market share to more agile competitors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
