TLDR:

BlackRock’s Larry Fink emphasizes tokenisation necessity as markets accelerate blockchain adoption for funds. 
Central banks prioritize wholesale CBDCs and regulated stablecoins to enhance settlement and cross-border payments. 
Bank of America and BNY Mellon prepare for transactional blockchain integration once regulatory clarity arrives. 
Bitcoin’s fixed supply positions it as potential reserve asset with sovereign allocations driving higher valuations.

 

The World Economic Forum in Davos 2026 witnessed financial institutions shifting from questioning cryptocurrency’s validity to implementing tokenisation and blockchain technology across their operations.

Institutional Adoption Moves from Pilot to Production

The financial sector has reached an inflection point where digital assets transition from experimental projects to regulated deployment. 

Wholesale applications in settlements, collateral management, and securities markets are advancing first, with retail adoption expected to follow. 

Major institutions plan to activate blockchain networks, treating tokenised funds and real-world assets as programmable alternatives to traditional ETFs operating continuously.

BlackRock’s Larry Fink addressed this transformation during the forum. According to André Casterman’s analysis, Fink stated that “tokenisation is necessary” and emphasized that “markets need to move very rapidly with tokenisation.” 

Fink described on-chain products such as tokenised money-market and bond funds as next-generation instruments for established financial exposures. Blockchain technology provides the foundational record-keeping and settlement infrastructure for these products.

Central banks and financial institutions converged on wholesale-first strategies for central bank digital currencies, tokenised deposits, and regulated stablecoins including USDC and RLUSD. 

These mechanisms aim to reduce settlement cycles, improve cross-border payment efficiency, and increase intraday liquidity. The approach contrasts sharply with volatile, unbacked cryptocurrencies that dominated earlier market cycles.

Bank of America’s Brian Moynihan predicted banks will “come in hard on the transactional side” once regulatory frameworks solidify. He views public and permissioned blockchains as interconnected payment layers where traditional banks maintain intermediary roles. 

BNY Mellon CEO Robin Vince characterized digital assets as a “new interesting, innovative technology” that will reshape custody and settlement operations over the coming decades.

Blockchain Infrastructure and Regulatory Frameworks Take Shape

Changpeng Zhao of Binance identified three areas showing promise: tokenisation for operational efficiency, payments for accelerated cross-border transfers, and artificial intelligence integration for automation. 

Circle’s Jeremy Allaire positioned stablecoins as a “neutral layer” that complements rather than competes with traditional banking infrastructure.

Blockchain’s technical capabilities drove discussion at the forum. Shared ledgers enable simultaneous verification, programmable smart contracts automate processes, and composable architecture allows seamless system interconnections. 

A panel featuring the Bank of France governor and Coinbase’s Brian Armstrong debated Bitcoin’s role as a scarce, decentralised alternative to fiat currencies, potentially countering inflation and monetary debasement.

Major fiat currencies abandoned gold standards during the twentieth century and currently lack hard asset backing. 

Bitcoin’s fixed supply cap of 21 million units offers deflationary characteristics, operational transparency, and protection against debasement. 

These attributes position Bitcoin as a potential reserve asset, with sovereign allocations possibly driving valuations to $500,000-$700,000 according to Fink’s projections.

United States regulatory developments include the forthcoming Digital Asset Market CLARITY Act, which divides oversight responsibilities between the SEC and CFTC. 

White House Crypto Czar David Sacks commented on institutional participation, noting that “after market structure passes, banks are going to get fully into the crypto industry” and predicted “it’s going to be one digital assets industry.” 

The framework enables traditional institutions to engage with digital assets under defined parameters.

XDC Network represents enterprise-grade blockchain infrastructure supporting this evolution. The platform’s hybrid protocol accommodates tokenised real-world assets, rapid settlements, and ISO 20022-compliant payments suited for wholesale finance. 

The network targets dozens of new masternodes in 2026, scaling toward thousands by 2035 to support expanding institutional adoption.

The post Davos 2026: Financial Institutions Embrace Tokenisation as Core Infrastructure appeared first on Blockonomi.

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Filed under: Bitcoin - @ January 25, 2026 2:25 am