Wall Street broker Bernstein stated Tuesday that 2026 will likely mark the start of a tokenization supercycle, with digital assets having probably bottomed after weak performance in late 2025.
The broker maintained its $150,000 Bitcoin forecast for 2026, with a $200,000 target for the peak of the next market cycle in 2027. Bitcoin traded around $91,600 at publication time.
Analysts led by Gautam Chhugani wrote that sentiment weakened late last year, but underlying fundamentals remain intact. Market dips present opportunities to add exposure to crypto-linked stocks, according to the report.
The next phase of growth will be driven by tokenization across multiple fronts. Stablecoins will move beyond crypto trading into mainstream banking and payments, with total supply expected to rise 56% year-over-year to approximately $420 billion by 2026, per the report.
Cross-border business payments, consumer remittances, stablecoin-based neobanks, and agentic payments will support stablecoin growth. Fintech firms, including Block, Revolut, and PayPal, are adopting stablecoins, while agent payment protocols like Coinbase-built X402 already track roughly $300 million in annualized transaction volume.
The tokenization of real-world assets represents another major pillar. Bernstein estimated that on-chain value locked in tokenized assets could more than double from around $37 billion in 2025 to approximately $80 billion in 2026.
Prediction markets round out the tokenization outlook. The broker projects total volumes could grow 100% in 2026 to roughly $70 billion, implying approximately $1.4 billion in annual revenue for market makers and exchanges based on average contract fees.
Coinbase, Robinhood, Figure, and Circle are the best tokenization proxies within Bernstein’s coverage, according to the report. The analysts cut their Circle price target to $190 from $230, with shares trading 4% lower at $81.35 in early trading. Bernstein also reduced its Coinbase price target to $440 from $510, with the stock 3.3% lower at $242.62.
Bitcoin finished 2025 down approximately 6%, though the report noted crypto equities delivered their strongest year on record with average returns of roughly 59% despite a fourth-quarter cooldown. The broker said crypto markets have likely bottomed and fundamentals support continued growth driven by institutional adoption and blockchain infrastructure development.
