Steve Kurz, the global head of asset management at Galaxy Digital, emphasizes that cryptocurrency has evolved from a mere asset class into a vital component of the financial infrastructure. In the firm’s 2026 investment outlook, titled ‘The Great Convergence,’ he outlines a pragmatic approach to navigating the current market while maintaining optimism for the future.
Kurz identifies a significant transformation in financial services, where traditional financial systems are increasingly merging with cryptocurrency infrastructure. He stated in a recent interview, “The convergence of traditional financial rails with crypto infrastructure represents a significant and durable market structure evolution for global financial services.”
Founded in 2018 by Michael Novogratz, Galaxy Digital serves as a bridge between conventional finance and the burgeoning cryptocurrency sector. The firm offers a range of services, including institutional trading, asset management, investment banking, custody, mining, and increasingly, consumer-oriented products.
Describing the current market landscape, Kurz notes that various cycles are overlapping, contributing to a complex environment. Despite significant declines in cryptocurrency prices, he points out that many positive developments have occurred at these lower levels, which creates a puzzling disconnect. He attributes the recent price downturn primarily to liquidity and leverage cycles.
While the liquidity events in October and subsequent deleveraging impacted markets, Kurz argues that the current situation differs from 2022, when liquidations exposed vulnerabilities in a less developed market structure. He believes the recent pullback is healthier, supported by more sophisticated instruments and improved risk management frameworks. He characterized the selloff as a typical deleveraging wave rather than a systemic failure.
Kurz also highlights that infrastructure development is progressing rapidly, with price movements typically lagging behind actual increases in activity and adoption. He anticipates that as on-chain activity rises, the narrative surrounding cryptocurrency will solidify.
While acknowledging the potential for further declines, he suggests that the most severe selling has likely already occurred. He predicts a phase of consolidation followed by a gradual upward trend in the latter half of the year.
Central to Kurz’s outlook is the integration of cryptocurrency into Wall Street’s financial systems. With new connections to traditional finance, crypto is now competing for capital alongside established assets like gold and emerging technologies. This evolution indicates a maturation of the market, as public blockchains gain recognition as institutional-grade infrastructure. Innovations such as stablecoins and tokenization are reshaping payment systems and market structures.
Kurz refers to this period as a ‘bull market in crypto plumbing,’ where advancements in custody, compliance, and integration with banks and fintechs are foundational for long-term value, even if they do not lead to immediate price increases.
The ‘Great Convergence’ also signifies the merging of cryptocurrency as an asset class with its technological capabilities, fostering a more robust on-chain economy. Galaxy Digital remains focused on crypto-native assets and believes the long-term integration of infrastructure with capital markets will be significant.
Kurz reassures stakeholders that while market prices may be struggling, business activity, especially in infrastructure, remains strong. He dismisses existential threats like quantum computing as immediate concerns, noting that periods of market negativity often align with bottoms. However, he warns that apathy could pose a more serious risk than volatility.
Bitcoin, according to Kurz, often serves as an early indicator of macroeconomic shifts. He suggests that its recent performance may reflect broader risk-off conditions in the market.
Galaxy Digital continues to see robust momentum in its core businesses, particularly in infrastructure and asset management. The firm reported $12 billion in assets on its platform at the end of last year. It is expanding its technology and payment services for banks and fintechs, while also launching a fintech hedge fund aimed at wealth and high-net-worth clients.
Kurz describes the current transformation in financial services as a ‘Fintech 2.0’ moment, creating numerous investment opportunities. Institutional investors, including pensions and sovereign wealth funds, are increasingly making capital allocation decisions despite the cyclical nature of crypto.
Ultimately, Kurz positions Galaxy Digital to capitalize on the comprehensive narrative of the ‘Great Convergence,’ integrating cryptocurrency infrastructure with traditional finance and asset management. He anticipates a measured outlook for 2026, emphasizing continued consolidation and maturation in the crypto space. While immediate price gains may be elusive, he remains bullish on the long-term fusion of technology and assets within the digital economy.
Steve Kurz of Galaxy Digital outlines the evolving role of cryptocurrency as a crucial element of financial infrastructure in the company's 2026 investment outlook. He emphasizes the integration of crypto with traditional finance and anticipates continued maturation and consolidation in the market, despite current price struggles.