WealthTech Radar 2026: Crypto Assets

A guest contribution by Dr. Alexander Bechtel, Global Head of Digital Products at DWS, and Pablo Nobre dos Reis, Digital Products Analyst at DWS, from the WealthTech Radar 2026.

Crypto assets have evolved in wealth management from a speculative topic to an established component of financial markets. Regulatory frameworks in major jurisdictions are now clearly defined, and client demand is evident. The question for banks is no longer whether to engage with this asset class, but how to build the depth and governance it requires.

What are crypto assets?

Crypto assets are digital representations of values or rights that are issued and managed as tokens on a blockchain. The asset class can be divided into three categories: tokenized assets, tokenized money, and cryptocurrencies.

Tokenized assets include securities such as stocks, real assets like art, and intangible assets such as patents. With a market capitalization of around USD 20 billion on public blockchains, they currently represent the smallest of the three categories.

Tokenized money primarily comprises tokenized deposits, stablecoins, and, depending on the design, central bank digital currencies (CBDCs). Stablecoins in particular have gained significant importance in recent years, reaching a market capitalization of USD 300 billion.

Cryptocurrencies like Bitcoin and Ethereum are so-called native crypto assets because, unlike the other two categories, they exist only on the blockchain. With a market capitalization of approximately USD 2.9 trillion, they are by far the largest category. In October 2025, they reached a peak of over USD 4 trillion.

Why crypto assets matter for wealth management

When asset managers consider incorporating crypto assets, it is essential to distinguish between the three categories. Each plays a different role in portfolios and bank infrastructure.

Cryptocurrencies represent a completely new asset class, which raises the question of whether they should be a strategic component of a diversified portfolio. Bitcoin is now among the top ten largest assets worldwide. Analyses suggest that Bitcoin can improve the risk-adjusted return of a broadly diversified portfolio, primarily due to its variable yet generally low correlation with traditional investments. However, high volatility remains a factor, making appropriate position sizing crucial. Investors can include cryptocurrencies through direct investments via crypto exchanges or through regulated vehicles such as crypto ETPs traded on traditional exchanges.

Tokenized money enables faster, cheaper, and programmable payments. Stablecoins are currently the most widespread form of tokenized money. They are used primarily for crypto trading and Decentralized Finance (DeFi) because they enable round-the-clock liquidity. At the same time, the potential for stablecoins in the traditional financial system is enormous, for instance in cross-border payments.

Tokenized assets promise more efficient processing of traditional financial market transactions, especially when combined with tokenized money. In the short term, faster settlement times and greater collateral mobility offer direct added value. In the area of alternative investments, tokenization could enable broader access through easier investability and transferability.

Status from previous radars

2023 – Repair mode and regulation in focus: The Radar classified crypto as speculation-driven following the 2022 upheavals (including exchange and issuer risks). The message: regulation and custody are the keys to returning to regulated channels.

2024 – ETF catalyst and custody integration: With the US approval of spot Bitcoin ETFs (January 2024) and Ether ETFs (July 2024), institutional access took center stage. Banks began integrating custody and ETP execution and testing on/off-ramps.

2025 – Institutionalization and MiCA operationalization: The Radar highlights the shift of volumes into regulated vehicles (ETFs/ETPs), market maturity under MiCA in the EU, and the growing relevance of compliant stablecoins as a payment and settlement rail.

Market and technology developments 2025

The crypto market ended 2025 with a market capitalization of around USD 3 trillion, slightly below its level at the beginning of the year. Over the course of the year, there were significant fluctuations, particularly among altcoins. Total market capitalization temporarily fell to around USD 2.3 trillion, and major altcoins such as Ethereum saw drawdowns of more than 50 percent. At the same time, Bitcoin's price reached a new all-time high of over USD 126,000 per coin on October 6, 2025, followed by a record total market capitalization of almost USD 4.1 trillion.

Inflows into the crypto ETP market remained very strong in 2025, reaching USD 47.2 billion, just slightly below the 2024 record of USD 48.7 billion. The United States accounted for the largest share with USD 42.5 billion, while Europe recorded inflows of approximately USD 2.85 billion. As a result, crypto ETP assets under management (AuM) rose to approximately USD 145.5 billion in the United States and roughly USD 16.8 billion in Europe.

Stablecoins were at the center of the crypto year 2025. Market capitalization reached a record of USD 300 billion in December, and transaction volumes are now comparable to those of major payment service providers such as Visa or Mastercard.

In the United States, the GENIUS Act introduced the first nationwide regulatory framework for stablecoins in July 2025, including requirements for reserves and supervision. The topic also gained political relevance, as stablecoins are increasingly viewed as a tool to strengthen the global dominance of the US dollar. The underlying reserves (predominantly US Treasuries) have already made issuers like Tether important buyer groups. Furthermore, new stablecoins entered the market in 2025, including the first BaFin-regulated euro stablecoin from AllUnity. Numerous major financial institutions announced their own stablecoin projects.

Tokenized assets also continued to gain traction. The market grew from USD 5.6 billion to roughly USD 20 billion by year-end. Tokenized money market funds are currently the dominant tokenized security type and account for around half of the total market capitalization. Most of these products are denominated in US dollars and largely invested in Treasuries. The product landscape includes offerings from both emerging fintech companies and established asset managers.

Critical assessment

Overall, 2025 was not a particularly successful year for cryptocurrencies. Market capitalization declined slightly from USD 3.1 trillion to USD 2.7 trillion, and Bitcoin saw a moderate decline from around USD 93,400 to USD 87,500. As a result, Bitcoin lagged behind gold, which once again confirmed its role as a safe-haven asset in 2025 with an increase of around 62.5 percent. It remains to be seen if Bitcoin can establish itself long-term as a hedge against inflation and geopolitical risks.

The stablecoin market, by contrast, grew significantly in 2025 from roughly USD 200 billion to USD 300 billion. The dominance of the US dollar remained largely unchanged: more than 99 percent of all stablecoins are denominated in USD. This creates increasing pressure for other currencies, including the euro, to act in order to avoid losing further relevance in international payments.

In the area of tokenized assets, a clear trend has emerged, contrary to the expectations of many experts, toward the tokenization of liquid instruments such as money market funds, equities, and bonds. Alternative asset classes such as private credit, private equity, and institutional alternative funds currently account for only around 27 percent of the market.

What banks should do now

Banks can provide secure access to crypto assets by offering their customers a wallet infrastructure for cryptocurrencies, tokenized money, and tokenized assets. In addition to custody solutions for direct investments, access to cryptocurrencies can also be offered through crypto ETPs using the existing traditional securities account setup.

In the area of tokenized money, banks should be aware that they will increasingly be confronted with new forms of money, including central bank digital currencies (CBDCs), stablecoins, and tokenized deposits, and must be able to orchestrate payments flexibly across all of these forms.

For tokenized assets, it is crucial for banks to position themselves as a trusted access point in order to avoid potential future disintermediation. Overall, banks should aim to integrate all three categories of crypto assets as seamlessly as possible into existing processes and infrastructure.

Conclusion

"Digital assets are increasingly becoming an established component of global financial markets."

— Pablo Nobre dos Reis, Digital Products Analyst, DWS

Crypto assets are increasingly becoming an established component of financial markets. For banks and asset managers, it will be essential in 2026 to closely monitor this asset class and build their own offerings. Regulatory frameworks in many major jurisdictions are now clearly defined and provide institutional players with a reliable path to participation. Simultaneously, the asset class has grown significantly, and client demand is clearly evident.

"Anyone looking to access digital customer segments or provide more value to existing customers should strategically develop crypto asset offerings."

— Dr. Alexander Bechtel, Global Head of Digital Products, DWS

These client solutions must always be based on robust IT and governance standards, deep specialist knowledge, and an operating model that meets risk and compliance requirements.

This article is based on the "Crypto Assets" chapter from the WealthTech Radar 2026, written by Dr. Alexander Bechtel and Pablo Nobre dos Reis of DWS. The full report with 11 trends and analyses from 12 industry experts is available for free download.

👉 Download the WealthTech Radar 2026