Traditional Finance Enters New Stage of Institutional Crypto-Asset Integration

Source: Coinspaidmedia Original Title: TradFi Enters New Stage of Institutional Integration of Crypto-Assets Original Link: Major Wall Street banks are shifting from the role of distributors to launching their own crypto products, creating long-term structural demand for digital assets.

According to a major research report, the beginning of 2026 marked a transition of traditional finance into a new phase of crypto adoption. Analysts argue that the market is entering a new stage of institutional adoption, where the key driver is not price dynamics but the development of a sustainable demand infrastructure.

A telling signal was the filing by the U.S. investment bank Morgan Stanley with the U.S. Securities and Exchange Commission (SEC) of S-1 registration statements to launch the Bitcoin Trust and the Solana Trust. According to analysts, this is the first time a top-tier bank entered the crypto segment not as a distribution channel, but as a direct product issuer, increasing competitive pressure on other systemically important market participants.

Analysts also point out that, despite rising global liquidity, crypto-assets remain under pressure in the short term due to the lack of stable institutional demand comparable to demand in physical commodity supply chains. This accounts for the market’s muted reaction to institutional news, in contrast to industrial metals, where demand is supported by real manufacturing consumption.

In the mid-term, analysts expect demand sources to expand through sovereign entities. The review highlights legislative discussions in the United States regarding the creation of strategic cryptocurrency reserves, as well as interest from a number of emerging economies in including Bitcoin in state reserves. Analysts view this process as a potential turning point that could complete the transformation of crypto-assets from a speculative instrument into a strategic financial resource.

Government entities hold approximately 647,000 BTC. By mid-2025, more than 15% of Bitcoin’s total supply was held by government, corporate, and other institutional organizations.

In a broader market context, this institutional shift aligns with the capital reallocation trend observed in recent reports. As the dominance of U.S. technology companies weakens and interest in diversification grows, digital assets are increasingly being viewed by institutional investors as part of long-term investment strategies rather than tools for short-term market speculation.