By Major financial institutions are expanding crypto infrastructure through tokenization, digital-asset custody and blockchain-based settlement systems, as banks seek to integrate digital assets into traditional financial markets.
The shift is moving beyond direct bets on cryptocurrencies such as bitcoin toward the technology and financial networks that support trading, payments, custody and settlement.
A report published by Regency Capital Wealth Management said institutions including BlackRock, JPMorgan Chase and BNY Mellon are developing or operating systems designed to connect blockchain technology with conventional financial services.
The report, distributed through ACCESS Newswire, described the development as a move from viewing cryptocurrency primarily as a speculative asset toward using blockchain as infrastructure for financial markets.
The trend is increasingly visible in products being developed by major financial institutions.
JPMorgan’s Kinexys platform, formerly known as Onyx, provides blockchain-based services for payments, asset tokenization and settlement. The bank says its systems can support near-real-time settlement and the use of tokenized assets as collateral.
BlackRock has also expanded its presence in digital assets. The asset manager offers the iShares Bitcoin Trust, while its USD Institutional Digital Liquidity Fund, known as BUIDL, represents a tokenized money-market fund structure. BlackRock maintains official token addresses for BUIDL across several blockchain networks.
BNY Mellon has developed digital-asset custody capabilities for institutional clients. In a company discussion on its digital-asset strategy, the bank said its platform was designed to support assets ranging from cryptocurrencies to tokenized assets, with custody initially focused on bitcoin and ether for selected U.S. institutional clients.
At the centre of the crypto infrastructure push is tokenization, the process of representing ownership or economic interests in assets digitally on a blockchain or similar network.
The U.S. Securities and Exchange Commission defines a tokenized security as a financial instrument that meets the definition of a security but is represented by a crypto asset, with ownership recorded on one or more crypto networks.
Financial institutions see potential applications in securities settlement, collateral management, payments and fund administration.
JPMorgan, for example, says its Tokenized Collateral Network allows ownership interests in assets such as money-market funds to be transferred using blockchain infrastructure without moving the underlying assets. The bank says the system can reduce settlement times and improve collateral mobility.
Stablecoins are another important part of the emerging crypto infrastructure. These digital assets are designed to maintain a stable value against a reference asset, commonly the U.S. dollar, and can be used for payments and settlement.
Institutional interest in stablecoins and tokenization is increasing. A 2026 survey by Coinbase and EY-Parthenon of 351 institutional investors found that 85% of respondents were using or interested in using stablecoins for internal cash management and money movement. The survey also found that 64% of asset managers were interested in tokenizing assets.
The findings suggest that institutional participation in digital assets is increasingly focused on financial applications rather than simply holding cryptocurrencies.
Payment networks are also developing blockchain-based systems. Mastercard announced its Multi-Token Network in 2023, describing it as infrastructure intended to make digital-asset and blockchain transactions more secure, scalable and interoperable.
Nasdaq has similarly developed market infrastructure capable of supporting traditional and digital assets. Its Eqlipse central securities depository technology supports multiple asset classes and is designed to accommodate digital assets and cryptocurrencies alongside conventional securities.
Artificial intelligence could further increase demand for programmable financial infrastructure, according to the Regency Capital report. The firm argued that automated AI systems conducting transactions could require financial networks capable of handling frequent, machine-to-machine payments and settlement.
That development remains an emerging use case, but the broader integration of blockchain into financial markets is already drawing regulatory attention.
The SEC issued an interpretation in March clarifying the application of federal securities laws to certain crypto assets and transactions. In August, it proposed additional rules covering certain investment contracts involving crypto assets.
The agency has also been examining tokenized securities and their treatment under existing securities laws. In an August submission, the SEC’s Crypto Task Force said institutional tokenization was advancing in areas including collateral, settlement and structured finance, while emphasizing legal enforceability, custody and authoritative ownership records.
U.S. lawmakers are separately considering broader digital-asset market-structure legislation. The Senate delayed consideration of the CLARITY Act until at least September, according to Reuters, leaving uncertainty over when Congress might establish a wider federal framework for crypto markets.
For investors, the expansion of crypto infrastructure means exposure to the sector may increasingly extend beyond individual digital tokens. Companies involved in custody, payments, exchanges, cybersecurity, market technology and tokenization could benefit if blockchain adoption continues.
Regency Capital said financial advisers will need to account for the tax, legal, custody and compliance implications as digital assets become more integrated with conventional portfolios.
The development of crypto infrastructure does not remove the risks associated with digital assets. Regulation, cybersecurity, liquidity, operational resilience and the legal status of tokenized assets remain important considerations for financial institutions and investors.
Still, the growing involvement of banks, asset managers, payment networks and market operators suggests blockchain technology is increasingly being developed as part of financial-market infrastructure rather than solely as a vehicle for cryptocurrency speculation.
The shift is likely to make tokenization, stablecoins and blockchain-based settlement more important themes for financial markets as institutions continue building systems that connect digital assets with traditional finance.
