# Institutions lead crypto market as regulation and tokenization drive growth

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/insights/36342
Published: 2026-10-21T04:40:51.000Z
Updated: 2026-10-21T04:40:51.000Z
Section: Insights & Views

> Blockchain.com co-CEO Lane Castleman says clearer regulation is bringing institutions into crypto, while bipartisan support and tokenized equities create room for expansion.

Institutional investors have become the main force in crypto markets as clearer regulation supports their participation, Blockchain.com co-CEO Lane Castleman said. He identified bipartisan political support and tokenization as drivers of the industry's expansion.

In an October 20 interview with Bitcoin Magazine, Castleman said institutional participation and regulatory progress were reshaping the digital asset sector. He expected congressional support to continue regardless of which party leads, although the form of that support could change.

Castleman contrasted the current market with 2021, when retail investors dominated and institutional involvement largely consisted of offshore crypto hedge funds. He said clearer laws in the EU and UK, alongside regulatory developments across Asia, Africa and the US, had enabled institutions and professional investors to take a larger role.

He described congressional support for digital assets as more bipartisan than ever. Republicans had been vocal supporters, he said, while Democratic backing was less prominent because the party was not in control.

Castleman said more than 30 rulemaking processes involving the SEC and CFTC had been underway under the Trump administration. Many remained unfinished, but he said they were broadening consumer access to crypto and enabling tokenization. The failure to pass Clarity was a disappointment, he added, but agencies were still making decisions with substantial effects.

State-by-state regulation remained an obstacle for businesses operating in the US, he said. Money transmitter licenses were required in most states, and more states were introducing their own laws. Established businesses such as Blockchain.com could meet those requirements, but startups faced a heavier burden. Castleman said he hoped for a federal solution that would simplify nationwide operations.

Asked about the market cycle, Castleman declined to call a turning point but said conditions appeared to be stabilizing. He argued that the latest downturn had lacked the venture capital funding for new crypto startups seen in earlier downturns, leaving established companies more room to gain scale and market share as new business areas emerged.

Blockchain.com has launched options trading for eligible customers in Europe as part of its derivatives offering. Castleman said the product responded to demand from customers seeking more sophisticated trading tools.

Operating in more than 180 countries also meant serving different custody preferences, he said. Customers facing hyperinflation or unreliable banks often prioritized control of their private keys. In markets such as the US, some preferred custodial services with familiar features such as password resets. Blockchain.com provides both options when customers open an account and lets them switch between them.

The company is also accepting waitlist registrations for June, an AI tool that connects to customers' wallets and provides information about their holdings and market conditions. Castleman said AI agents could transact with one another on behalf of businesses and consumers, using crypto to transfer value efficiently. He considered stablecoins a likely choice but said the assets used could vary by country and by the preferences of buyers and sellers.

In tokenization, Castleman positioned Blockchain.com as a distributor connecting assets with end users. Many companies could issue tokens and put assets on a blockchain, he said, but fewer could bring those assets to customers. Through its partnership with Ondo, Blockchain.com offers clients around the world exposure to tokenized equities.

Castleman described the company as a liquidity layer connecting retail customers, institutions, other crypto businesses and the wider digital asset ecosystem. With regulators, major equities exchanges and equity traders engaging with tokenization, he said Blockchain.com saw an opportunity to expand global access to equities.