The crypto treasury sector is poised for consolidation in 2026 as firms seek scale to navigate ongoing market challenges, according to Wojciech Kaszycki, chief strategy officer at BTCS. The downturn in 2025 saw many treasuries' stock prices fall below the book value of their crypto assets, highlighting the need for diversification and cash-generating operations like validator services and tokenized credit offerings. Kaszycki emphasizes that firms with revenue-generating operations have a competitive edge over those that merely hold crypto assets. The integration of tokenized real-world assets (RWAs) and credit instruments into DeFi platforms is expected to provide new revenue streams and collateral options. This shift could reshape risk profiles and yield expectations, attracting a broader investor base and potentially leading to strategic mergers and acquisitions. The evolving landscape reflects a trend towards financialization, with crypto treasuries transitioning from passive asset holders to diversified financial platforms. As the sector adapts, the focus will be on blending blockchain innovation with traditional finance strategies to enhance resilience and growth.