PwC states that crypto regulation now drives financial infrastructure

Source: Yellow Original Title: PwC states that crypto regulation now drives financial infrastructure

Original Link: Global cryptocurrency regulation has shifted from rule-making to implementation, transforming digital assets from a speculative market into deployable financial infrastructure, according to a new report by PwC.

The firm’s report argues that the most significant change is no longer whether cryptocurrencies are regulated, but how these rules now enable banks, asset managers, and companies to integrate stablecoins, tokenized money, and on-chain settlement directly into their financial operations.

Regulation shifts from policy to financial plumbing

PwC concludes that 2026 marks a transition from fragmented regulatory debates to active oversight in key jurisdictions.

Frameworks for stablecoins, custody requirements, disclosure standards, and licensing regimes are no longer theoretical. They are in effect, being enforced, and shaping everyday financial activity.

As a result, crypto regulation increasingly functions more like financial plumbing than restrictions.

Institutions that previously limited their activities to pilot projects are now incorporating digital assets into treasury management, cross-border payments, and internal settlement processes.

In many cases, these systems operate behind the scenes, and end users are unaware that blockchain-based infrastructure is involved.

Stablecoins become monetary infrastructure

The report highlights stablecoins as the clearest example of cryptocurrency integration into the monetary system.

With hundreds of billions of dollars in circulation globally, and the vast majority denominated in US dollars, stablecoins have shifted from trading tools to settlement instruments used by exchanges, fintechs, and increasingly, traditional financial institutions.

PwC notes that regulation has legitimized private-sector stablecoins rather than displacing them in favor of solely state-issued solutions.

This has allowed banks, payment companies, and crypto platforms to coexist on shared settlement infrastructures while competing in services, distribution, and customer experience.

Tokenization extends beyond capital markets

Beyond payments, PwC identifies tokenized deposits and on-chain representations of financial assets as a growing focus for regulators.

These instruments are beginning to blur the line between traditional banking products and blockchain-based systems, especially in wholesale markets and cross-border financing.

The report suggests that regulation is accelerating this shift by clarifying responsibility, custody, and operational risk—conditions necessary for large institutions to move a significant part of their balance sheets onto the chain.

The dominance of the dollar enters the digital age

One of the most forward-looking conclusions of the report is geopolitical in nature.

PwC posits that the dominance of the US dollar is increasingly tied to digital infrastructure rather than reserves alone.

Dollar-backed stablecoins, widely used outside the US, are effectively expanding the influence of the dollar through blockchain networks rather than correspondent banking.

This evolution, PwC argues, could reshape how monetary power is exercised globally, as competition shifts toward controlling digital settlement infrastructures rather than merely issuing currency.

Fragmentation becomes the new risk

Although high-level regulatory principles are converging, PwC warns that implementation remains fragmented.

Differences between frameworks in the US, the EU, the UK, and Asia mean companies must navigate multiple compliance models simultaneously.

According to the report, the competitive advantage in the next phase of crypto adoption will belong to companies that treat regulation as market design—building products and infrastructures aligned with regulatory intent across jurisdictions, rather than viewing it as a mere legal afterthought.