Coinbase UK CEO Says Tokenized Collateral Is Moving Into Market Mainstream

Tokenized collateral is transitioning from experimental pilots into core financial market infrastructure, according to Keith Grose, UK CEO of Coinbase, as central banks and institutions accelerate real-world deployment of blockchain-based asset management systems.

Grose stated growing engagement from central banks signals tokenization has moved beyond the cryptocurrency-native ecosystem into mainstream financial infrastructure, particularly around liquidity and collateral management applications. "When central banks start talking about tokenised collateral, it's a sign this technology has moved beyond crypto and into core market infrastructure," Grose said.

He referenced new data from Coinbase showing 62% of institutions have either maintained or increased cryptocurrency exposure since October despite periods of market volatility. According to Grose, sustained institutional presence reflects a shift in priorities from speculative positioning toward operational tools enabling firms to deploy digital assets at scale within existing risk frameworks.

Coinbase reported growing institutional demand for services including custody, derivatives, and stablecoins, which Grose characterized as essential for managing risk and supporting day-to-day financial activity. "That tells us the market is building for real-world use," he stated, suggesting infrastructure development has progressed beyond proof-of-concept stages.

Grose added that tokenized assets and stablecoins are expected to transition from conceptual possibilities to everyday instruments for liquidity and collateral management. This evolution will define the next phase of market development through 2026 as infrastructure matures and regulatory clarity improves, he suggested.

Grose highlighted the importance of the UK regulatory environment in unlocking further capital allocation into tokenized markets. While acknowledging the UK has made progress developing a framework for digital assets, he stated policy choices around stablecoins will be critical to sustaining momentum.

"In the UK, to grow tokenisation we need no limits or blocking of stablecoin rewards," Grose said, arguing that allowing investors to keep funds circulating within the digital economy would help unlock a genuinely liquid, 24/7 tokenized marketplace. The comment reflects ongoing debates about stablecoin yield restrictions similar to discussions in US legislation.

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 infrastructure. With central banks increasingly engaged and institutional exposure holding steady, tokenization is positioning itself as foundational infrastructure for modern finance rather than a niche cryptocurrency application.

Tokenization represents the process of creating blockchain-based representations of real-world assets. Tokens can represent diverse assets both financial and non-financial, including cash, gold, stocks, bonds, royalties, art, real estate, and other forms of value. The blockchain functions as a shared ledger recording ownership and transfers in transparent and verifiable formats.

As tokenization continues developing, implications for markets, infrastructure, and risk management are becoming clearer, prompting further research into how on-chain assets can reshape financial systems and operational processes within traditional finance.