Investments made in the crypto industry in previous years are set to pay off as banks and corporations move from pilot projects to full-scale adoption of blockchain technologies. This was stated by Monica Long, president of Ripple.

She highlighted four key areas that will transform the global financial system.

Stablecoins as the Basis for Transactions

In the coming years, stablecoins will be integrated into payment systems and will become a primary, rather than an alternative, tool. The main driver will be the B2B sector.

Long noted the explosive growth: while the volume of business payments in stablecoins was less than $100 million per month at the beginning of 2023, it reached $76 billion last year.

The Ripple president emphasized the importance of regulation, including the passage of the GENIUS Act in the U.S. She believes that compliant assets like RLUSD will become the standard for 24/7 payments and collateral use. This will unlock over $700 billion in working capital currently sitting on the balance sheets of S&P 1500 companies.

Institutional Adoption

According to Long's forecast, by the end of 2026, corporations will hold over $1 trillion in digital assets. A 2025 survey by Coinbase found that 60% of Fortune 500 companies are already working on blockchain initiatives.

It is expected that 5-10% of transactions in capital markets will move on-chain, facilitated by the launch of ETFs and tokenization of assets by custodial banks and clearinghouses.

Consolidation of Custodians

The asset custody sector is expected to see a wave of mergers and acquisitions, according to Long. Custodian services are becoming mainstream, prompting providers to expand their functionalities. To reduce risks, banks will adopt strategies that involve using multiple custodians simultaneously.

Long anticipates that by 2026, more than half of the top 50 global financial institutions will form new partnerships in this area.

Symbiosis of AI and Blockchain

The integration of these technologies will automate financial routines. The combination of smart contracts and artificial intelligence will enable treasuries to manage liquidity and execute margin calls in real-time.

Privacy will play a crucial role. Zero-knowledge proofs (ZKP) will allow neural networks to assess borrowers' creditworthiness without disclosing confidential information.

As a reminder, in January, analysts from a16z predicted growth in the prediction markets and ZK-proof sectors.