Silicon Valley Bank Report Signals Crypto's Transition from Speculation to Infrastructure

A comprehensive analysis by Silicon Valley Bank (SVB), now a part of First Citizens Bank, indicates that the cryptocurrency market is maturing beyond speculative trading and entering a phase of practical integration with established financial infrastructure. The report, drawing on SVB's extensive relationships with over 500 crypto companies and venture firms, points to several key trends driving this evolution, including increased institutional investment, regulatory advancements, and the convergence of digital assets with emerging technologies like artificial intelligence.

The surge in venture capital funding for US crypto companies, which jumped 44% to $7.9 billion in 2025, underscores the growing confidence in the sector's long-term potential. While the number of deals decreased, the median check size increased, signaling a focus on higher-quality projects and experienced teams. SVB anticipates this trend to continue in 2026, with capital concentrating in fewer, more promising ventures as institutional investors seek reliable and compliant investment opportunities.

Stablecoins, digital currencies pegged to a stable asset like the US dollar, are also playing a pivotal role in crypto's integration. SVB notes their evolution from mere trading tools to viable digital cash alternatives for treasury operations, cross-border payments, and business-to-business settlements. The passage of regulatory frameworks like the U.S. GENIUS Act, which establishes federal standards for stablecoin issuance, provides much-needed clarity and encourages wider adoption by traditional financial institutions.

Tokenization, the process of representing real-world assets on a blockchain, is another significant driver. Onchain representations of assets like cash, Treasuries, and money market instruments surpassed $36 billion in 2025, attracting interest from major players like BlackRock and Franklin Templeton. Tokenization promises to reduce transfer costs, enable faster settlement, and open up new possibilities for private markets and consumer-facing applications.

The intersection of crypto and artificial intelligence is creating new avenues for innovation. Startups are developing agent-to-agent commerce protocols, allowing machines to autonomously negotiate and settle payments using stablecoins. Blockchain-based provenance and verification tools are also emerging to address trust concerns surrounding AI-generated content. SVB believes that future crypto applications will seamlessly integrate into existing fintech products, with stablecoins, tokenized assets, and AI agents operating behind the scenes to enhance user experience.

Mergers and acquisitions are expected to accelerate as traditional financial institutions seek to incorporate digital asset capabilities into their existing offerings. Coinbase's acquisition of Deribit and Kraken's purchase of NinjaTrader are prime examples of this trend. With regulatory clarity improving and customer demand growing, acquiring established crypto companies may prove more efficient than building new products from scratch. The OCC granted conditional approval to digital-asset-focused trust banks including custody provider BitGo, Circle Internet, trading platform Fidelity Digital Assets, stablecoin issuer Paxos and payments network Ripple in 2025 showing regulators embracing digital asset infrastructure inside the banking perimeter.

SVB's report concludes that while volatility will undoubtedly persist and impact prices, the fundamental narrative surrounding crypto is shifting towards infrastructure. The bank envisions a future where blockchain technology underpins treasury operations, collateral flows, cross-border payments, and various aspects of capital markets. This transition represents a crucial step in the evolution of cryptocurrency, transforming it from a niche asset class into a vital component of the global financial system.