Tokenized collateral is transitioning from experimental pilots to core financial market infrastructure, according to Keith Grose, UK CEO of Coinbase, who states that central banks and institutions are accelerating real-world deployment. Grose explains that growing engagement from central banks signals tokenization has moved beyond the crypto-native ecosystem and into mainstream financial plumbing, particularly around liquidity and collateral management.
"When central banks start talking about tokenized collateral, it's a sign this technology has moved beyond crypto and into core market infrastructure," Grose said. He pointed to new data from Coinbase showing that 62% of institutions have either held or increased their crypto exposure since October, despite periods of market volatility. According to Grose, this sustained institutional presence reflects a shift in priorities where firms are increasingly focused on operational tools that allow them to deploy digital assets at scale within existing risk frameworks, rather than purely speculative exposure.
Coinbase is seeing growing institutional demand for services such as custody, derivatives and stablecoins, which Grose said are essential for managing risk and supporting day-to-day financial activity. "That tells us the market is building for real-world use," he emphasized. He added that tokenized assets and stablecoins are expected to move from conceptual possibilities to becoming everyday instruments for liquidity and collateral management. This transition will define the next phase of market development through 2026 as infrastructure matures and regulatory clarity improves.
Grose highlighted the importance of the UK regulatory environment in unlocking further capital allocation into tokenized markets. While the UK has made progress in developing a framework for digital assets, he said policy choices around stablecoins will be critical to sustaining momentum. "In the UK, to grow tokenization we need no limits or blocking of stablecoin rewards," Grose argued, stating that allowing investors to keep funds circulating within the digital economy would help unlock a genuinely liquid, 24/7 tokenized marketplace.
As institutions move from testing to deploying tokenized collateral in live market environments, Grose expects adoption to accelerate across custody, derivatives and stablecoin-based settlement. With central banks increasingly engaged and institutional exposure holding firm, tokenization is positioning itself as a foundational layer of modern financial infrastructure rather than a niche crypto application.
