Galaxy’s Steve Kurz sees ‘great convergence’ driving crypto’s long-term outlook

Steve Kurz, Galaxy Digital's global head of asset management and co-head of digital assets, has outlined a pragmatic yet optimistic vision for crypto's trajectory in his firm's 2026 investment outlook, titled "The Great Convergence." Speaking to CoinDesk, Kurz characterized recent crypto market declines as a healthy and necessary deleveraging cycle rather than evidence of systemic weakness—a marked shift from the structural failures that characterized the 2022 downturn.

The central thesis of Kurz's outlook is that crypto is undergoing a fundamental transformation from a speculative asset class into critical financial infrastructure. The convergence of traditional financial rails with blockchain infrastructure represents, in his view, a durable evolution in how global financial services operate. This structural shift underpins his bullish long-term positioning despite near-term market volatility.

Kurz points to three specific catalysts driving this convergence: the acceleration of stablecoin adoption, the expansion of tokenization across asset classes, and deepening integration between blockchain and traditional finance rails. These developments are attracting institutional capital and creating the conditions for sustainable market participation beyond retail speculation.

Rather than predicting a sharp V-shaped recovery, Kurz expects range-bound trading near-term, followed by gradual gains as institutional capital continues to accumulate and infrastructure integration advances. This measured outlook reflects confidence in the long-term secular trend while acknowledging near-term consolidation as the market digests leverage unwinding and continues maturing. Galaxy Digital, founded in 2018 by Michael Novogratz, positions itself as the institutional bridge enabling this transition between traditional and crypto finance.