Stablecoins, RWAs and Ethereum: Predictions for Explosive Growth Through 2026

Stablecoins on Track to Half a Trillion Dollars

The crypto market is facing significant changes: While Bitcoin solidifies its position as digital gold, Real World Assets (RWAs), stablecoins, and privacy technologies are increasingly coming into focus for institutional players ^[1]. Stablecoins in particular have seen remarkable growth this year – for the first time, market capitalization exceeded the $300 billion mark ^[2].

Joseph Chalom, Co-CEO of SharpLink, predicts that the stablecoin market will reach a market capitalization of $500 billion by the end of 2026 ^[2]. The industry received a decisive boost from U.S. President Donald Trump, who signed the GENIUS Act in July, providing regulatory clarity ^[2].

Ethereum is likely to benefit especially from this development, as the blockchain controls over 53 percent of the stablecoin market ^[2]. "Global stablecoin use cases, including cross-border remittances, retail payments, and institutional transactions, will continue to increase, with Ethereum establishing itself as a fundamental settlement layer for value transfer," Chalom explained ^[2].

Tokenized Assets Facing Tenfold Increase

Beyond stablecoins, Chalom sees enormous growth potential in tokenized assets. He predicts that the market for tokenized RWAs will grow to $300 billion in 2026, representing a tenfold increase ^[2]. The range extends from individual funds, stocks, and bonds to "complete fund complexes" ^[2].

As examples, the SharpLink Co-CEO cited efforts by Goldman Sachs and BNY Mellon to tokenize money market and liquidity funds on blockchain infrastructure ^[2]. Franklin Templeton and BlackRock have also expressed their intentions to take similar steps ^[2]. BlackRock's tokenized treasury bonds are already being cited as an example of the growing integration of traditional financial products ^[1].

New Markets and Institutional Engagement

Chalom also expects that prediction markets and on-chain AI agents will "go mainstream" in 2026 and "drive significant activity on Ethereum" ^[2]. At the same time, sovereign wealth funds are expected to increase their ETH holdings by five to ten times ^[2].

"As onchain activity booms, we will see sovereign wealth fund ETH holdings rise in lockstep as they gain access to the 'trustware' asset that secures Ethereum, where the bulk of innovation is concentrated," Chalom said ^[2].

Pension funds, endowments, and one of the world's largest sovereign wealth funds gained access to crypto for the first time this year through ETFs and direct purchases ^[2]. "In 2026, this will intensify significantly as competitive dynamics take hold," Chalom predicted ^[2].

Regulation as a Turning Point

Regulatory frameworks will be crucial for further development. With MiCA, DAC8, and new anti-money laundering directives, 2026 could determine whether crypto remains a niche or becomes part of the global financial infrastructure ^[1]. Privacy technologies in particular are repositioning themselves – moving away from classic privacy coins toward programmable data protection for businesses and institutions ^[1].

SharpLink itself is the second-largest corporate Ethereum holder worldwide with 863,020 ETH worth approximately $2.53 billion ^[2]. The company generated 460 ETH in staking rewards in one week in December, reaching cumulative rewards of 9,701 ETH since the treasury's inception ^[2].