What Broker-Dealers Need to Know About Digital Assets in 2026
Key Trends and Implications for the Year to Date and What to Look for in the Second Half
-
August 10, 2026
-
The first half of 2026 has made one thing clear: the convergence of traditional finance and digital assets is no longer a question of if, but rather of how fast. Tokenized securities have crossed from conceptual into mainstream market infrastructure. Institutional appetite for tokenized Treasuries has surged beyond expectations, and the regulatory landscape has rapidly shifted in real time. Broker-dealer digital-asset custody rules continue to evolve as FINRA has sharpened its oversight of member firms’ digital-asset activity, and strategic consolidation around regulatory licenses is accelerating.
Five Key Themes in 2026 and How Broker-Dealers Are Impacted
The themes defining the first half of 2026 reflect an industry in genuine transition, where the pace of change has consistently outrun even optimistic forecasts. Understanding what has already shifted is essential context for what comes next. In the second half of this piece, we identify the key risks, opportunities, and regulatory developments broker-dealers should be tracking over the next six months.
1. Tokenized Securities Moving into Mainstream Market Infrastructure
Tokenized securities adoption is accelerating across traditional market infrastructure, led by DTCC, BlackRock/JPMorgan, Securitize, and NYSE/Nasdaq.
- NYSE and Securitize announced an agreement supporting tokenized securities infrastructure, including broker-dealer participation and digital transfer-agent functionality.1
- The SEC approved rule changes enabling tokenized securities trading on NYSE and Nasdaq frameworks, marking a major shift toward digital asset-based representations of traditional stocks and ETFs.2, 3
- SEC staff guidance emphasizes that tokenized securities remain subject to the federal securities laws and that, depending on the tokenization model, regulated intermediaries, including broker-dealers, Alternative Trading Systems (“ATSs”), custodians, and transfer agents, may continue to perform essential regulatory and operational functions.4
Implication for broker-dealers: Firms with ATS, custody, transfer-agent, or digital securities capabilities are increasingly positioned to participate in tokenized equity, fund, and treasury markets.
2. Broker-Dealer Digital Assets Custody Rules Continue to Evolve
A significant regulatory development has been the SEC’s effort to modernize broker-dealer treatment of digital assets.
- The SEC withdrew the 2019 joint SEC-FINRA statement on broker-dealer custody of digital asset securities,5 replacing it with FAQs addressing digital asset activities and distributed ledger technology.6, 7
- Industry participants continue pressing the SEC for clearer frameworks around custody, tokenized securities, and ATS operations.
- Recent SEC discussions are focused on updating broker, ATS, custody, and transfer-agent rules to accommodate on-chain securities markets.8
Implication for broker-dealers: Regulatory uncertainty is decreasing, though operational requirements for custody and customer protection remain a major compliance focus.
3. FINRA Increasing Oversight of Member Firms’ Digital Assets Activity
FINRA remains highly focused on firms with digital assets exposure.
- The 2026 FINRA Annual Regulatory Oversight Report contains a dedicated section on member firms' nexus to digital assets. FINRA highlights digital assets-related compliance, supervision, communications, and operational risks.9
- FINRA has launched its 2026 Digital-Asset Activity Information Request, seeking updated information from member firms about digital assets related business lines and activities.10
Implication for broker-dealers: Broker-dealers should expect continued examinations focused on digital asset activities, outside business activities, disclosures, and supervisory controls.
4. Tokenized Treasuries Continue to Gain Institutional Adoption
Tokenized treasury products remain one of the fastest-growing digital asset segments.
- For example, tZERO announced plans to offer access to tokenized treasury products from Archax to U.S. institutional investors through regulated infrastructure.11
- Industry surveys show growing accredited-investor interest in tokenized securities and real-world asset (“RWA”) products.12
Implication for broker-dealers: Many broker-dealers are evaluating tokenized Treasuries as a lower-risk entry point into digital asset markets compared with digital asset-native tokens.
5. Consolidation and Strategic Positioning Around Regulatory Licenses
Firms are increasingly acquiring regulated infrastructure rather than building from scratch.
- For example, Securitize is moving closer to becoming a publicly traded company following SEC effectiveness of its merger-related registration statement.13
- As tokenization grows, firms are placing greater value on broker-dealer, ATS, transfer-agent, and custody licenses as key enablers of regulated digital asset businesses.
Implication for broker-dealers: Regulatory licenses are becoming a competitive advantage, driving consolidation and faster market entry.
What Should Broker-Dealers Monitor Over the Next Six-Month Horizon?
Navigating the SEC's evolving tokenized securities framework – The SEC’s evolving approach to tokenized securities and digital trading venues is among the most consequential areas to monitor. As regulators adopt custody, settlement, and infrastructure guidance, broker-dealers must stay closely aligned with developments to remain both compliant and competitive.
Digital asset custody: Building ahead of the curve – With purpose-built frameworks still taking shape, firms should anchor to existing custody rules while proactively building capabilities around private key control, asset safeguarding, and settlement mechanics, positioning ahead of where regulation is heading.
FINRA examinations – FINRA's digital asset examination priorities are sharpening, with increased scrutiny on disclosures, supervision, and customer protection. Firms that invest now in compliance infrastructure will be well-placed to demonstrate readiness and build examiner confidence.
Tokenized real-world assets: Institutional demand is here – Institutional demand for tokenized Treasuries, money market funds, and other RWAs is accelerating, driven by greater efficiency, enhanced liquidity, and faster settlement. For broker-dealers positioned to serve this market, the growth opportunity is significant.
Exchange competition: Choosing the right side of the trade – Traditional exchanges and digital-native platforms are racing to become the preferred marketplace for tokenized securities. Broker-dealers that understand this dynamic will be better positioned to make informed decisions around partnerships, infrastructure investment, and market positioning.
Digital asset behavior: Don’t mistake fluency for liquidity – Digital assets remain largely unproven across varying economic conditions, and operational fluency can create a misleading impression of liquidity. As secondary markets expand, private equity firms introduce fractionalized shares, and stablecoins of varying capitalization enter the ecosystem, liquidity risks can range from manageable to material.
Security and fraud: Prevention is the only strategy – Security and fraud risks will grow in direct proportion to capital flowing into digital markets. Criminal networks are actively probing distributed ledgers, attacking infrastructure, and using social engineering to compromise wallet credentials. Given the irreversible nature of digital asset transactions, prevention is the only viable strategy; recovery after the fact is rarely an option.
24/7 trading: Build for it now or catch up later – Round-the-clock digital asset trading is reshaping expectations across financial markets, with growing pressure on traditional securities markets to match that availability. Broker-dealers that begin building operational and compliance frameworks for continuous trading today stand to gain a meaningful first-mover advantage.
Footnotes:
1: “New York Stock Exchange and Securitize Agree to Memorandum of Understanding to Support Tokenized Securities,” Business Wire (March 24, 2026).
2: U.S. Securities and Exchange Commission, “Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 2, To Amend the Exchange’s Rules To Enable the Trading of Securities on the Exchange in Tokenized Form,” Release No. 34-105047 (March 18, 2026).
3: U.S. Securities and Exchange Commission, “Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange’s Rules To Enable the Trading of Securities on the Exchange in Tokenized Form,” Release No. 34-105260 (April 22, 2026).
4: U.S. Securities and Exchange Commission, “Statement on Tokenized Securities,” (Jan. 28, 2026).
5: U.S. Securities and Exchange Commission, “Withdrawal of Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities,” (May 15, 2025).
6: Financial Industry Regulatory Authority, “Withdrawal of Joint Statement 070819,” (May 15, 2025).
7: U.S. Securities and Exchange Commission, “Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology,” (May 15, 2025).
8: U.S. Securities and Exchange Commission, “Crypto Task Force Written Input,” (accessed June 2026).
9: Financial Industry Regulatory Authority, “Crypto Assets,” 2026 FINRA Annual Regulatory Oversight Report (December 2025).
10: Financial Industry Regulatory Authority, “FINRA Provides Update on Member Firms’ Crypto Asset Activities,” (August 13, 2024).
11: tZERO Group, Inc., “tZERO to Bring Archax $GOVY to US Institutional Investors – Unlocking Tokenized Treasuries Access Through Regulated US Infrastructure,” (June 23, 2026).
12: tZero Group Inc., “Accredited Investors Are Ready to Deploy Capital, With Growing Interest in Tokenized Securities, According to tZero's Verify Investor 2026 Accredited Investor Outlook,” TradingView, (June 18, 2026).
13: Securitize, Inc. and Cantor Equity Partners II, Inc., “Securitize and Cantor Equity Partners II Announce SEC Declaration of Effectiveness of Registration Statement on Form S-4,” PR Newswire, (June 5, 2026).
Related Insights
Published
August 10, 2026
Key Contacts
Senior Managing Director
Senior Managing Director
Managing Director