“We will’t catch a break,” stated David Duong, Head of World Analysis, Coinbase Institutional, as he mentioned the present state of the crypto market, institutional adoption and Euro-Stabelcoins.
“We noticed ETF outflows in December, and an enormous a part of that needed to do with tax loss harvesting and different issues. I believed that we’d see a few of that restoration,” stated Duong. “Proper now, I might say markets are sadly pinned by technical elements. And it’s the problem for lots of people.”
“I’m nonetheless cautiously optimistic for the primary half of 2026. I don’t have a robust view on the place I see crypto going within the second half of the 12 months. And there are a number of causes for that. I feel that there are specific issues proper now that I simply can’t value in. What may occur with midterms within the US, for instance? Or what occurs with the market construction invoice? I feel that progress on that would nonetheless be significant. So I’m watching to see whether or not that may very well be a possible catalyst for us into the second half of the 12 months.”
David Duong, Head of World Analysis, Coinbase Institutional stated that he’s optimistic that the invoice will cross in 2026! “I feel that we’ve already gotten stablecoin oversight. Market construction readability goes to emerge too.” #clarityact https://t.co/WUFL16O3ir
— Akriti Seth (@AkritiSethN) February 2, 2026
“It’s going to be a ladder and that’s going to be very useful for crypto. And so I see that occuring. I feel the liquidity scenario is exhibiting indicators (we produce our personal customized M2 cash provide index) that the best regression tends to be a lag round 110 days. We’re at an upward uptick for that. I feel that these issues undoubtedly recommend to me that crypto must be doing higher within the Q1 and probably within the Q2 as properly.”
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On Euro-Stablecoins
“Definitely we’ll see a diversification of stablecoins into different currencies. We’re already seeing it. I feel that there’s bulletins on our potential Renminbi stablecoin (RMB) and a possible Japanese yen stablecoin. And we do have Euro stablecoins already, like, EURC, for instance, already exists.”
“It’s actually simply the traction round it. I feel that there’s a number of geopolitical financial elements that fall into this when individuals are interested by it, as a result of sometimes, the explanation why the greenback nonetheless represents like 99% of all stablecoins out there’s as a result of the greenback stays the reserve forex of the world.”
And also you talked about de-dollarization earlier. That’s most likely not going to final ceaselessly, however we don’t understand how lengthy it’s going to final. It may nonetheless doubtlessly be generations lengthy. And once more, that has been accelerated in 2025. However for probably the most half, individuals don’t know what the choice to the greenback could be.
“China clearly would love that to be the Renminbi stablecoin (RMB), but it surely’s a present account surplus nation. And customarily, what we’ve seen is that it is advisable be a present account deficit nation so as to have the ability to produce a reserve forex just like the greenback, for instance. So there are challenges on what’s occurring in Europe.”
“Europe remains to be going by way of a really tough tough fiscal scenario. I imply, it’s not distinctive to Europe. It’s occurring globally. Plenty of international locations are going by way of it. Notably, it’s been Japan over the past week that has grabbed the headlines. However we will’t neglect that France is coping with, I imagine, 150% of GDP ranges. I imply, these are issues that have been a fear once we had the disaster again in 2012, for instance.”
“So, I feel that that is type of the hindrances on which the euro experiment. And I nonetheless say it’s in that part the place regardless that it’s been round for a really very long time, they’re attempting to determine it out as a result of we don’t have euro bonds like in a unified eurozone type of approach. And there’s a cause for that. There’s nonetheless insurance policies of those particular person international locations. So I feel that these are the issues that make it tough. Whereas with the greenback, properly, we have now an yield curve.”
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“Institutional adoption has undoubtedly gained momentum, and it’s been doing so for years”
“I work for the institutional facet of Coinbase. So I’ve gotten a first-hand view of these items.”
“I’ve been with Coinbase for the higher a part of 4 years now. And over that point, I can see the incremental adjustments which were occurring with establishments, not simply with the entry, however with their participation in these markets, it’s grown very, very sharply. And this is the reason I at all times felt very assured about this. Anecdotally, I’ll let you know that I keep in mind when 2022 occurred and we’re getting a number of challenges. I’m not going to undergo all of them. I’m positive you keep in mind as properly. However I might have pals, I used to work in TradFi, who would attain out to me and be like, are you doing okay? I used to be like, sure, I’m tremendous. I truly, if something, was very assured that issues have been going to be tremendous on the finish.”
2025 undoubtedly marked a really huge breakthrough 12 months for institutional entry. 2026 will very doubtless see the subsequent part of that institutional adoption being constructed.
“The investor base itself has additionally diversified. 2024, 2025, we noticed spot ETFs. And I feel these are undoubtedly creating these sturdy, regulated, acquainted on-ramp for buyers.”
“We additionally acquired digital asset treasuries. And I feel individuals are actually extra shy about speaking about them, to be trustworthy. However I nonetheless assume they emerged as an vital company steadiness sheet automobile.”
“We’re seeing the tokenization of real-world belongings. Stablecoins are actually penetrating the core monetary workflows. Individuals are actually not simply utilizing stablecoins to commerce with, however individuals are utilizing it for payrolls. Individuals are utilizing it for cross-border funds. So that is the inspiration that’s going to help the expansion and infrastructure of crypto cost rail in 2026.”
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Key Takeaways
In an unique chat with 99Bitcoins.com, David Duong, Head of World Analysis, Coinbase Institutional stated that he’s optimistic that the CLARITY invoice will cross in 2026!
Importantly, the market desires the CLARITY Act to cross as a result of it ends the regulation by enforcement period.
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