How to view the development of the encryption industry in 2025 by TradFi giants?

Originally from DLNews

Compilation | Odaily Planet Daily Golem (@web3_golem)

Wall Street is entering the cryptocurrency market, and in the past 12 months, traditional finance has entered the digital asset field in unprecedented ways.

In 2024, industry giants such as BlackRock and Franklin Templeton launched Bitcoin spot ETFs; fintech companies such as Robinhood and Stripe also announced plans to acquire cryptocurrency companies; in addition, emerging digital banks such as Revolut and companies supported by banks such as Zodia Custody have also expanded their range of crypto products.

Since Satoshi Nakamoto introduced Bitcoin as an alternative to the financial crisis in 2008, 16 years have passed, and cryptocurrencies have become part of the financial system. The trend of traditional finance (or TradFi) infiltrating into the crypto field shows no sign of slowing down.

So what will happen in 2025? DLNews interviewed 7 traditional financial companies, including Robinhood, Revolut, Fidelity, and Standard Chartered Bank, and asked them about their views and expectations for the crypto market in 2025. Their answers covered AI, regulation, asset tokenization, and more. The full interview content is as follows, compiled by Odaily Planet Daily.

Zodia Custody CEO: 2025 will be a new era for institutional and retail participation in crypto.

How do traditional financial giants view the development of the encryption industry in 2025?

Julian Sawyer, CEO of Zodia Custody, said that 2025 will be a critical year: the positive prospects of digital assets, combined with clearer regulatory policies worldwide, may make 2025 the most crucial year for growth.

Many people are optimistic that the United States will prioritize the compilation of regulations to help it catch up with more mature markets in the cryptocurrency field and promote innovation. In particular, the new chairman of the U.S. Securities and Exchange Commission is expected to support the implementation of a digital asset regulatory framework and overturn the SAB 121 guidance, providing investors with more confidence and clarity.

In Europe, the long-awaited comprehensive implementation of the Markets in Crypto-Assets Regulation (MiCA) will provide investors and industry participants with a clear roadmap for operations, helping to integrate previously divergent regulatory approaches and solidify Europe’s position in crypto regulation.

Apart from regulation, the tokenization of real-world assets may be one of the most important innovations to truly unleash the potential of digital assets, as enterprises and institutions seek more efficient ways to digitize and trade tangible assets.

These trends indicate that the industry is maturing and expanding the practicality of blockchain and the potential of cryptocurrencies. With increasing trust, 2025 could be a new era for institutional and retail participation, further solidifying the important role of digital assets in the global financial system.

Revolut Cryptocurrency Product Manager: The launch of MiCA will improve cryptocurrency regulation in Europe

! How do traditional financial giants view the development of the encryption industry in 2025?

Revolut’s Head of Cryptocurrency Products, Leonid Bashlykov, believes that the cryptocurrency industry will be in a good development momentum in 2025, especially after we have witnessed historic highs recently.

The shift in the political situation in the United States may open up a positive path for the future development of cryptocurrencies around the world. Regardless of the SEC’s stance, there will inevitably be significant progress in cryptocurrency regulation by 2025 due to the launch of MiCA, which will provide greater market operational clarity for the European Economic Area.

Meanwhile, in the UK, the Financial Conduct Authority (FCA) has released a crypto roadmap that provides further clarity on legislation for cryptocurrencies.

Robinhood Crypto GM: closely watching the intersection of Crypto and AI

Robinhood Crypto General Manager Johann Kerbrat said, we are very focused on the institutional field, and in 2024 we saw many major acquisitions, such as Stripe acquiring Bridge. We also observe more and more people are interested in stablecoins and tokenization of real assets.

At the same time, more and more people are learning how to use cryptographic technology to provide a better customer experience. They are building more and more games and other on-chain products. In particular, digital membership cards and other products driven by cryptocurrency may not prominently feature cryptographic technology, but they use cryptocurrency in the background to reduce costs and increase speed.

Another area we closely follow is the intersection of cryptocurrency and AI. There is much discussion about fair compensation for AI training using creator materials, and the use of encryption technology may play an important role in it.

Fidelity Digital Assets Research Analyst: Stablecoin products may continue to increase

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Martha Reyes, a digital asset research analyst at Fidelity, said that stablecoins have flourished due to their application in digital asset transactions, as well as their role as a means of obtaining US dollars, a relative store of value, and a global payment method. In 2024, the EU’s stablecoin regulations will take effect in June, making it the first important jurisdiction to implement such regulations, and many are watching to see if other regions will follow suit.

Looking ahead, stablecoin products may continue to increase and promote integration with traditional banking businesses, as well as providing other cash-like tools. Stablecoins can coexist or compete with tokenized deposits issued directly by banks, and facilitate the trading of tokenized traditional securities, not only improving efficiency but also maintaining the status of the US dollar as the global reserve currency.

Franklin Templeton Digital Asset Management Research Analyst: DePIN demand increases, AI Agent becomes more prevalent

David Alderman, a research analyst at Franklin D. Templeton Digital Asset Management, said that the cryptocurrency market in 2025 will make significant progress due to regulatory clarity, institutional adoption, and technological development. Global financial regulatory agencies may take a more friendly attitude towards tokenization and cryptocurrencies.

We believe that this will be led by US regulatory agencies (such as the SEC), making more investment products related to cryptocurrencies (such as ETFs or tokenized securities) more diverse.

We will also see the convergence of major TradFi participants and crypto infrastructure, such as crypto-native companies entering the securities business or traditional financial companies launching crypto-related products. At the same time, it is expected that the United States will establish a regulatory framework for stablecoins, which will open the door for major financial institutions to issue their own stablecoins.

With the increasing support from governments and institutions, Bitcoin will consolidate its position as a global financial asset. Some countries may include Bitcoin in their strategic reserves, further promoting its adoption as a store of value and a global reserve asset.

As the industry prioritizes decentralized and efficient solutions for practical applications such as logistics and the Internet of Things, the demand for decentralized physical infrastructure network (DePIN) may increase. AI agents will become more common in the cryptocurrency field, automating on-chain transactions, portfolio management, and partially integrating social media and other social components with on-chain activities.

Overall, as the underlying technology of cryptocurrencies becomes an integral part of the global financial and operational systems, 2025 will mark the transition of the crypto industry from speculation to utility. Stakeholders should pay attention to regulatory developments, institutional initiatives, and the progress of AI integration with cryptocurrencies to navigate this dynamic environment.

Standard Chartered Bank Global Head of Digital Assets Research: BTC and ETH prices will reach $200,000 and $10,000 respectively by the end of 2025

Standard Chartered’s global head of digital asset research, Geoff Kendrick, said that as of 2024, institutions have net purchased 693,000 bitcoins through US spot ETFs and MicroStrategy, equivalent to 3.3% of the total possible bitcoin supply, driving bitcoin to break through $100,000. It is expected that the institutional inflow in 2025 will maintain or exceed the pace of 2024.

MicroStrategy is ahead of schedule in completing its three-year $4.2 billion plan, so the purchasing amount for 2025 may be on par with or even more than in 2024.

As for US ETFs, according to SEC 13F filings, pension funds account for only 1% of the reported holdings of the nine new ETFs. We expect this number to increase by 2025 with the implementation of regulatory reforms by the Trump administration, making it easier for traditional finance to participate in the digital asset market.

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This will drive the price of Bitcoin to our target of around $200,000 by the end of 2025. Our expectations will be even more optimistic if U.S. retirement funds, global sovereign wealth funds, or potential U.S. strategic reserve funds adopt Bitcoin more actively.

Since the US election, Ethereum has also been a major beneficiary of inflows into spot ETFs. Prior to this, due to Grayscale’s outflows, the Ethereum spot ETF has incurred a net loss of $500 million since its inception in July. However, after the election, net inflows reached $2 billion, and in terms of market share, the inflow is roughly equivalent to that of Bitcoin, totaling $9.5 billion.

Continued inflows in 2025 should help propel Ethereum to our expected target of around $10, 000 by the end of 2025.

Shanzhai Coin is also expected to rise in 2025, but may benefit in a more unstable manner. From different end-use cases, we anticipate further growth in gaming and asset tokenization; we see subcategories in their early stages (such as DePin and consumer social) with rapid growth potential.

Sygnum Investment Research Director: Cryptocurrency Market Will Experience Demand Shock by 2025

Katalin Tischhauser, investment research director at Sygnum, said that with a large influx of new funds into the cryptocurrency market in 2025, there may be repeated demand shocks.

We only see the beginning of institutional funds flowing into ETFs and portfolio allocations to the crypto asset category. The rapid decline in US regulatory risks has supported this trend, and the possibility of central bank Bitcoin reserves is very high, which will accelerate demand growth, far beyond what this market can bear, leading to a significant price increase.

After significant investments in stablecoins and tokenized infrastructure by traditional financial institutions and decentralized platforms, we expect stablecoins to be widely adopted in payments and tokenized assets to be widely used in trading and investments by 2025.

While we expect regulatory changes to enable the issuance of more cryptocurrency ETFs, we have not seen significant demand for more single token ETFs. Expectations for ETFs can drive the prices of various tokens, but reality may be disappointing.

The altcoin season may eventually replicate past cycles, driven primarily by hype and sentiment rather than fundamentals, and this cycle will be led by meme coins. However, if there is rapid progress on the regulatory front that allows the token structure to actually absorb economic value, then we could see a broad fundamentals-driven revival of altcoins.