Looking ahead to the future of decentralization, we spoke with RYT Co-founder and Chief Architect Jeff Mahony about his top three trends for the coming year and conducted our own deep dive into each theme he identified. RYT is a Layer 1 blockchain built for governments and institutions, focused on advancing large-scale blockchain adoption and institutionalization.
Every meaningful digital system begins with a verified identity. Without this foundational layer of trust, any platform, whether a financial network or a national service, is, as many in the industry often say, built on sand. The cost of that instability is immense.
The global self-sovereign identity market is valued at USD 3.49 billion in 2025 and is expected to grow from USD 6.64 billion in 2026 to approximately USD 1,153.07 billion by 2034, expanding at a compound annual growth rate of 90.52 percent. Rising demand for secure digital identity solutions continues to drive the market, signaling that identity has moved from an ideological concept to a commercial and regulatory necessity.
“Everything starts with a national ID system if you’re going to do something real. If I can’t validate who you are on a continuing basis, then you’re just wasting resources,” says Jeff Mahony, Co-founder and Chief Architect at RYT.
According to him, countries in Central America alone lose billions of dollars each year to fake identities within their healthcare systems. Eliminating this type of fraud is where real impact begins, Mahony adds.
“Digital ID is now a requirement for any national digital economy. Real deployments will rely on ongoing verification rather than one-time checks, with verified users becoming a new benchmark for success,” continues the co-founder of the RYT chain.
Regulation is not the enemy. It is the entry point for serious capital. Crypto regulation is becoming more defined as legislation moves from draft to law across major markets, according to PwC’s Global Crypto Regulation Report. Countries with clearer regulatory frameworks are expected to lead the industry as institutional participation accelerates.
In Jeff’s view, the next phase will be driven less by debate and more by execution.
“Jurisdictions are going to compete on who can actually deploy working frameworks, attract capital, and operate with credibility,” Mahony says. “The winners won’t be the loudest voices.
They’ll be the ones that can run compliant systems at scale and move real volume while keeping markets clean and protected.”
In the United States, progress on the CLARITY Act has slowed as banking groups push back against provisions tied to stablecoin yields. Policymakers have instead focused on expanding the use of dollar-pegged digital currencies for payments, positioning stablecoins as a way to reinforce the dollar’s role in global markets.
The United Kingdom is preparing for a major regulatory shift by bringing crypto asset activities into a full authorization regime under the Financial Services and Markets Act. The framework is designed to strengthen investor protection and establish shared oversight of payment stablecoins between the Financial Conduct Authority and the Bank of England.
Meanwhile, the United Arab Emirates and Switzerland continue to advance and formalize their virtual asset regulatory regimes, according to the report.
“Regulation sounds scary to many people, but it creates comfort at the institutional layer,” Jeff says. “It brings in real money. It creates safety. And with that safety comes confidence. That is when you see global institutions start moving billions into the space,” says Mahony.
He adds that regulators are testing different approaches through sandbox programs that allow projects to operate under supervision. Builders that adapt to these guardrails become stronger and attract institutional confidence. Higher interest rates are also acting as a stress test, filtering out weaker projects while rewarding sustainable performance.
The next phase of blockchain adoption will be driven by national programs rather than startups.
“Once governments start generating tangible benefits through blockchain, everything changes,” Jeff says. “When a Layer 1 removes intermediaries and corruption, and the savings are measurable, that is when governments will get serious. Right now, they are testing. Soon they will commit,” Mahony adds.
In 2026, much of this transformation will unfold quietly within public institutions as governments pilot digital identity systems, registries, and national payment rails that move on-chain without fanfare. Early deployments are focused on measurable cost savings and operational credibility before broader rollouts. Trust and efficiency, rather than technology hype, will drive adoption as governments shift from experimentation to implementation.
One example of this momentum came recently, when Binance founder Changpeng Zhao said he is holding talks with a dozen governments on the large-scale tokenization of state assets. This development could signal a shift in how countries fund public projects and manage national wealth. Speaking on the sidelines of the World Economic Forum’s annual meeting in 2026, Zhao described tokenization as a potential tool for sovereign financing and industrial reinvestment, pointing to growing interest in linking blockchain-based systems with traditional public finance.
The disclosure highlights a deepening dialogue between cryptocurrency leaders and national policymakers as digital assets move closer to the center of economic strategy. By choosing the World Economic Forum as the venue for the announcement, Zhao placed the discussion firmly within the realm of mainstream policy debate rather than emerging technology circles. The talks suggest that governments are increasingly exploring tokenization not as an experiment, but as a potential component of future fiscal and investment frameworks.
Also read: Liberdade Private Club: futebol, educação financeira e Bitcoin — a evolução fora da bolha
