Ethereum News Today: Ethereum TVL Set to Surge 10× on Stablecoin and RWA Boom in 2026

The future of money is increasingly private, with stablecoins and real-world asset tokenization gaining momentum in 2026. Institutional demand is driving innovation in confidential digital assets, as blockchain infrastructure providers and exchanges adapt to evolving compliance and privacy needs. This trend is reshaping traditional finance and decentralized markets alike.

Confidential stablecoins, backed by real-world assets (RWAs), are becoming a focal point for financial institutions and regulators. Companies like VCI Global and COTI are pioneering solutions that blend tokenization with privacy-enhancing technologies. These efforts are part of a broader movement toward institutional-grade digital finance ecosystems.

Meanwhile, Ethereum's role in tokenizing assets is expanding. Analysts predict its total value locked (TVL) could surge by 2026, fueled by growing stablecoin volumes and institutional adoption. This shift is supported by Ethereum's robust security and economic infrastructure, which have drawn major players like BlackRock and JPMorgan into its ecosystem.

Institutional Adoption and Tokenization on the Rise

VCI Global has announced its 2026 strategic roadmap for a proprietary RWA Exchange. The platform will support tokenization across sectors like precious metals, ESG-linked projects, and real estate. By leveraging the Oobit and Tether ecosystems, VCI aims to provide instant settlement and liquidity for institutional-grade assets. This initiative aligns with growing investor demand for transparency and governance in tokenized markets.

COTI, a privacy-layer pioneer, is also expanding its footprint in 2026. The company plans to roll out multichain privacy solutions and introduce private RWAs on its Garbled Circuits infrastructure. COTI's PriveX decentralized exchange already demonstrates how privacy and DeFi can coexist, allowing traders to execute confidential orders without revealing strategy or intent.

Ethereum's TVL is expected to grow significantly in 2026. Joseph Chalom of Sharplink Gaming predicts the TVL could increase by as much as 10× due to stablecoin expansion and RWA adoption. With over $300 billion in tokenized assets expected by year-end, Ethereum is becoming the preferred settlement layer for institutional players. Tom Lee of Fundstrat argues that Ethereum's architecture makes it the natural choice for Wall Street's tokenization efforts.

Privacy as the New Competitive Edge

Privacy is emerging as a critical differentiator in the crypto space. COTI's 2026 roadmap underscores this shift, emphasizing the importance of programmable privacy for institutional and DeFi applications. The company's cross-chain privacy protocol has already executed its first transaction via Axelar, expanding its reach across 70+ blockchain networks. This development lowers the barrier to entry for enterprises seeking privacy without overhauling existing systems.

ABN AMRO has also advanced its digital asset strategy by securing MiCAR approval for crypto custody and conducting a cross-border blockchain trade with DZ BANK. The transaction used a blockchain-based Smart Derivative Contract, enabling automated valuation and collateral management. These initiatives reflect the growing institutional confidence in digital assets and regulated infrastructure.

In Asia, the Bank of China completed the first cross-border digital RMB QR code payment transaction in Laos. This real-time settlement model allows Chinese tourists to pay directly in yuan without exchanging currency, streamlining cross-border retail transactions. The move demonstrates how CBDCs and stablecoins can bridge traditional and digital financial systems.

Challenges and Market Dynamics

Despite the momentum, challenges remain. Core Scientific, for example, is navigating a difficult transition from Bitcoin mining to AI infrastructure. The company's Q1 2025 results showed a 16% revenue decline to $79.5M and an adjusted EBITDA loss of $6.1M. While the CEO remains optimistic about profitability in 2025, execution risks persist as the firm shifts focus.

The crypto derivatives market also faced volatility in 2025. Daily trading volumes averaged $265 billion, with Binance capturing nearly 30% of the market. However, a sharp deleveraging event in October wiped out $70 billion in open interest, exposing structural weaknesses in risk management and liquidation mechanisms. CoinGlass noted that the market is moving toward a more institutionalized, low-leverage model, albeit with increased tail risks.

What This Means for Investors

For investors, the shift toward private and tokenized assets offers both opportunities and risks. Confidential stablecoins and RWA platforms are attracting capital from traditional finance, but regulatory scrutiny and execution risks remain key concerns. Companies like VCI Global, COTI, and Ethereum-based protocols are positioning themselves to lead this transformation.

Institutions are also playing a growing role. ABN AMRO's MiCAR-compliant custody services and cross-border blockchain trades reflect the maturation of digital asset infrastructure. Meanwhile, BitMart's expansion into Vietnam highlights the rising demand for crypto-based payment solutions in high-adoption markets.

As the market evolves, compliance and privacy will continue to shape the landscape. Investors should monitor regulatory developments, particularly in jurisdictions like the EU and the U.S., where MiCAR and SEC oversight are defining the rules of engagement for digital assets.