DAF Insights – Key Crypto Trends To Watch in 2025
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As we’ve entered 2025, the digital asset industry is at a turning point. Regulatory clarity is improving, institutional adoption is growing, and new technologies are reshaping how we think about finance.
However, challenges remain, particularly in global policy coordination, retail customer protection and infrastructure development.
Many industry leaders highlighted key trends that will define the years ahead.
Some of these developments like stablecoins as widespread payment tools and the rise of institutional involvement in crypto seem inevitable.
Others, such as the tokenization of RWAs (real-world assets) and on-chain compliance solutions, could radically transform finance but require further innovation and regulatory acceptance.
The question is re we ready for these shifts
Entering the compliance era
A major theme for 2025 is regulatory enforcement. The EU’s MiCA (Markets in Crypto-Assets) regulation is being implemented by the EU member states, with the first licensed firms setting compliance benchmarks.
This is a significant step toward legitimizing the industry and could serve as a model for other jurisdictions.
However, global regulatory alignment remains a challenge. While MiCA provides clarity in Europe, many other markets lack comprehensive frameworks.
This inconsistency creates uncertainty for businesses operating across borders, complicating compliance efforts.
Stablecoins as the gateway to crypto and multi-custodial future
For many, stablecoins will be their first real interaction with digital assets.
In emerging markets, where local currencies are volatile and access to US dollars is limited, stablecoins become a critical financial tool for remittances, savings and commerce.
Yet, widespread adoption depends on three key factors.
- Regulatory clarity. Governments must define how stablecoins fit into financial systems.
- On/off-ramp accessibility. Users need easy ways to convert between stablecoins and local currencies. While existing systems like SWIFT still play a role, alternative solutions could become dominant in the coming years.
- Infrastructure development. Global payment networks must evolve to accommodate stablecoin transactions at scale. Yet, as stablecoins integrate further into the global economy, another shift is occurring. 2025 will see a shift toward hybrid custody models. Traditional finance institutions, crypto-native firms and self-custody solutions are increasingly coexisting. This provides flexibility for different types of investors but also might raise concerns about security risks and governance.
Large institutional players enter the crypto space
Large asset managers and sovereign wealth funds are stepping into crypto. Their participation requires strong due diligence, compliance frameworks and risk mitigation strategies.
However, institutional players prefer ‘clean’ assets some sovereign wealth funds reportedly favor ‘virgin’ Bitcoin to avoid potential regulatory scrutiny.
This raises questions about market segmentation and whether these clean assets will trade at a premium.
On-chain identity versus traditional AML/KYC checks
The idea that KYC reviews could become obsolete with blockchain-based identity solutions is a game-changer.
However, adoption depends on whether regulators recognize blockchain-based identity systems as legally valid and acceptable.
Without regulatory buy-in, this innovation could remain underutilized.
Tech to transform the industry
Tokenization of RWAs
Tokenization was one of the major topics at the conference. By representing real estate, equities and other assets as blockchain tokens, institutions can potentially unlock additional liquidity.
Tokenization could also make it easier for retail investors to participate in asset classes that were once reserved for institutions.
However, they remain vulnerable.
The crypto market is driven by hype cycles and narratives, and retail investors need more protection via the following.
- Improved financial education to help retail investors make informed decisions.
- More transparency in token projects and exchanges.
- Implementing stronger safeguards against market manipulation and scams.
Without addressing these issues, the industry risks losing credibility among everyday users, slowing adoption despite tech advancements.
Programmable money
Unlike traditional currency, programmable money allows users to embed rules into transactions.
This means financial operations can be automated, conditional and compliant by default. This innovation can become a long-term differentiator for crypto beyond Bitcoin.
On-chain compliance and analytics
Blockchain analytics tools are now integrated into AML and KYC compliance processes.
This convergence of regulation and technology allows firms to monitor transactions in real-time, detect illicit activity and ensure regulatory compliance.
This shift suggests that crypto is not moving away from regulation but rather adapting to it.
Companies that use these tools will likely gain a competitive edge as compliance standards tighten.
The road ahead
The digital asset industry is moving from speculation to utility, from regulatory uncertainty to compliance and niche adoption to mainstream acceptance. The foundation is being laid but execution will determine success.
The key to navigating this transition is balancing innovation with regulation, ensuring retail customers’ protection and building scalable infrastructure.
Yulia Murat is the head of regulatory affairs at Global Ledger, bringing extensive experience in financial crime compliance and anti-money laundering. She has previously worked with the UK’s FCA (Financial Conduct Authority), where she assessed applications from crypto firms seeking UK registration.
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Author: Yulia Murat
