Coinbase’s latest market outlook for 2025 identifies tokenization, DeFi resurgence, and a shift toward pro-crypto regulation in the US as key trends for the following year.
Coinbase anticipates 2025 as a pivotal year for US crypto legislation after years of regulatory ambiguity. The exchange said these developments could redefine how crypto integrates with traditional finance and regulatory systems in the year ahead.
Pro-crypto regulation
According to the exchange, a bipartisan pro-crypto majority in Congress signals a favorable shift, transforming regulatory frameworks from obstacles into catalysts for industry growth. Additionally, the push for a Strategic Bitcoin (BTC) Reserve further solidifies the evolving attitude among lawmakers.
In August, Senator Cynthia Lummis proposed the idea, followed by Pennsylvania’s consideration of a Bitcoin Strategic Reserve Act, which could allow the state to allocate up to 10% of its general fund to crypto.
While legal challenges remain, these initiatives indicate growing government interest in integrating Bitcoin within financial strategies.
Internationally, jurisdictions like the EU, through its phased Markets in Crypto-Assets (MiCA) regulation, and financial hubs like the UAE, Hong Kong, and Singapore are also building frameworks to foster innovation. This global momentum could further propel crypto adoption and innovation.
$30 trillion opportunity
The tokenization of real-world assets (RWA) gained significant traction in 2024, with the market growing over 60%, reaching $13.5 billion by December. Projections estimate the sector could expand to a staggering level between $2 trillion and $30 trillion in the next five years.
The report noted that traditional financial institutions are increasingly adopting tokenization, using blockchain technology to enable near-instant settlements and 24/7 trading. The scope of tokenization is broadening, encompassing government securities, private credit, commodities, corporate bonds, and even real estate.
Challenges, such as liquidity fragmentation across multiple blockchains, persist, but the report mentioned advancements in these areas suggest tokenization could streamline investment processes and portfolio construction.
DeFi brings utility back
After a challenging cycle marked by unsustainable practices, decentralized finance is now transitioning to a more mature and transparent phase. Coinbase highlighted the growing synergy between off-chain and on-chain capital…
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