Walkers report says crypto narrative has shifted
In the last year the crypto narrative has become more about the selective integration of blockchain into what already exists, and less about disruption of traditional financial systems, according to a new White Paper.
The report from international law firm Walkers, Digital Assets the Second Act, was written, in part, by Bermuda partner Rachel Nightingale, who offers commentary on the evolving role of leading financial centres.
In the paper, she touches on how stablecoins are mimicking traditional finance structures, saying that Bermuda has taken a similar stance to Guernsey by licensing several stablecoin providers and issuing bespoke guidance for single-currency pegged stablecoins.
“This provides additional clarity around the design and operation of these models within the existing regulatory framework,” she explained.
She said Bermuda’s Digital Asset Business Act illustrates how well designed regulation accelerates rather than constrains growth.
“Licensed firms progress from a test licence (Class T) to a modified licence (Class M) to a Full Licence (Class F), with capital thresholds, risk management and governance requirements scaled to each stage,” she wrote.
“The framework allows a business to build commercial track record and raise capital in parallel, reducing friction at the points where growth is most vulnerable to regulatory uncertainty.”
This approach is reinforced by the Bermuda Monetary Authority, which keeps its guidance under close review and has recently completed an industry-wide consultation on asset tokenisation. It has since issued a draft consultation paper aimed at streamlining processes and clarifying how tokenised activities interface across legislative frameworks.
The paper sets out four forces defining 2026: the maturation of institutional demand, the reassertion of traditional finance structures, the rise of regulators as enablers and the practical hurdles that will determine which products scale.
Walkers said institutional engagement with digital assets is no longer defined by experimentation or retreat.
“It has become selective, structured and grounded in use cases that align with established financial practice,” the paper said. “What has changed over the past year is not the level of interest, but the way institutions engage.”
The report said attention has shifted away from early-stage protocol launches and headline-driven innovation, towards products that resemble familiar financial instruments.
Tokenised funds, tokenised debt and institutional-grade stablecoins now sit at the centre of activity — structures that are recognisable, governable and capable of supporting scale
“Where a tokenised product can be mapped to a direct parallel in traditional finance, sponsors should expect comparable regulatory and governance treatment,” Walkers’ researchers said. “They should structure accordingly from the outset, rather than retrofitting familiar frameworks onto native structures later.”
Walkers said jurisdictional choice for digital asset businesses is now less a question of which regime permits an activity and more a question of which regulator will be the most useful long-term partner as the product and the market evolve.
They added that regulation has matured, product design has become more sophisticated and institutional engagement is no longer theoretical.
“The market should be honest with itself about what remains to be solved,” the report stated. “Two issues in particular will determine the pace of growth over the next 18 months: distribution and banking access. Both are solvable, but neither will be solved quickly.”
• For the full report, see Related Media
You must be Registered or to post comment or to vote.
