The 2026 New York Fed Innovation Conference, held in June, centered on recent innovations in technology and finance, exploring the critical role regulators and the private sector play in supporting modernization and stability.
The conference included discussions on agentic AI, digital assets, and quantum computing. It drew a wide audience, including representatives from regulators, banks, fintech companies, universities, payment processors, and financial market infrastructure firms, among others.
Coherence and Governance: Cornerstones in AI Adoption
Speakers said trust in artificial intelligence systems depends on coherence and governance, defining coherence as aligning operating models, governance, risk frameworks, and human judgment to create trusted and scalable AI capabilities that give institutions enough assurance to move AI pilots into wider adoption. They defined governance as the processes, standards, and frameworks to ensure ethical, responsible, and secure AI, emphasizing that AI demands more nuanced and comprehensive governance than any technology before it.
Governance must be embedded in system architecture from inception rather than retrofitted, speakers said. They emphasized that observability and transparency, such as audit trails, are a critical component of AI governance.
A key theme of the conference was that AI adoption increases capacity but does not replace human judgment. Speakers said some firms have begun to think of AI as a “partner” or “digital employee,” an approach that requires governance models that integrate human accountability. “The real question for us is how can we make this acceleration responsible, the governance scalable, and human judgment more integrated—not less integrated—as this technology becomes more powerful?” said keynote speaker Leigh-Ann Russell, chief information officer and global head of engineering at Bank of New York Mellon.
Preparing for a Changing Threat Environment
AI systems introduce new categories of risks, threats, and fragility. Traditional risk frameworks can’t keep up with AI adoption, which is moving at an unmatched pace. Adapting to this new landscape means defensive approaches must evolve in parallel, speakers said.
The challenge is compounded by differences in the regulatory landscape across nations. AI powered by large language models has developed quickly, largely outside a legal and regulatory framework. Across industries, institutions agree there’s a growing need for coordinated regulations to strengthen safeguards while supporting AI adoption. Industry participants said regulation can encourage safer incorporation of this new technology in day-to-day workflows and backstops if something goes wrong.
Interoperability: A Strategic Lever for Digital Assets
Turning to digital assets, speakers said tokenized assets and stablecoins deliver limited value in isolation. For example, Neha Narula, director of the digital currency initiative at MIT Media Lab, said the ability of issuers to maintain par value for stablecoins depends on orchestration across bank deposits, Treasury markets, and blockchain settlement.
Technologies such as tokenized financial assets, interoperable payments rails, and programmable AI agents working together could unlock new capabilities, such as 24/7 settlement, real time liquidity, and global multicurrency transfers, speakers said.
Some challenges in interoperability remain, including different legal and regulatory frameworks across jurisdictions. Interoperability and trust require robust identity standards and verifiable credentials. And legacy systems require support as new systems emerge, speakers said.
Speakers said that the promise of tokenization and AI will only be realized by integrating programmable, trusted infrastructures spanning a variety of product types, such as stablecoins, tokenized deposits, and payment rails.
Looking Ahead
Technical capability, oversight, and operational coordination are advancing in global financial systems at different rates. This creates opportunities for stakeholders to align around foundational elements, such as public-private partnerships, that could shape long-term outcomes.
A recording of the 2026 New York Fed Innovation Conference is available on the event page.
Morgan White is a product strategy advisor for the New York Innovation Center at the New York Fed.
Meghan Marks is a product owner in the Markets Group at the New York Fed.
The views expressed in this article are those of the contributing authors and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.
