What to Expect in Institutional Crypto in 2025

– What were your biggest expectations for the crypto trading industry in 2024 that you hope will finally take shape in 2025? 

Tier 2 and Tier 3 EU CEXs may face increasing liquidity challenges as MiCA regulations unfold in their domestic markets. These changes could drive them to explore new broker-dealer business models or seek advanced technology and liquidity solutions to remain competitive. 

Konstantin Shulga, CEO & Co-Founder

Following increased regulatory oversight, the stablecoin market size would expand with more regulated stablecoins backed by USD and local fiat being launched. It's happening albeit slowly.

Most countries have yet to debundle the risk by segregating various crypto providers like Wallet, Exchange, On/Off Ramp, and Depository/Trust, which needs to happen to both protect end users and to have a better market structure. 

Krish Chatterjee, Advisory Member

While crypto ETF approval increased retail participation in digital assets, institutional adoption was rather underwhelming in 2024. The new US administration, interest from corporate treasuries of major US companies, and the development of crypto Depositary Receipts promise more robust volumes and price action in 2025.

Leo Hmelnitsky, Strategic Partnerships

In 2024, I expected more unified global regulations to streamline cross-border crypto trading, but fragmented policies kept uncertainty high. Liquidity in crypto derivatives also fell short, especially during volatile periods, leaving traders exposed. Additionally, the integration of tokenized traditional assets into mainstream markets progressed slower than anticipated. In 2025, I hope to see these gaps addressed, fostering a more stable and institutional-friendly trading environment.

James Harris, Strategic Partnerships

– What are your key thoughts or expectations regarding the institutionalization of crypto in 2025? 

U.S. clarity: I’m not super optimistic that 2025 will bring back most of the crypto businesses that left the US. However, we should at least see more regulatory clarity and build a proper base for mass institutional adoption in the U.S. by 2026.

Konstantin Shulga, CEO & Co-Founder

Crypto-backed cards would finally start to boom due to key regulations that have brought stablecoins under payment acts in various countries. It would lead to both Web3 and Web2 clients spending crypto for everyday needs. 

ETFs and their promotions would lead to more institutional flow in сrypto, leading to good volumes in the majors like BTC and ETH. This would also directly or indirectly lead to institutions offering crypto-backed loans, unlocking further opportunities for driving investments into crypto.

Krish Chatterjee, Advisory Member

The digital assets space continues to evolve for retail and institutional market participants. While CEXs retain a key role in the crypto market structure, OTC trading and credit intermediation continue to gain momentum. Innovative investment strategies and products, like crypto Depositary Receipts, collateralization of digital assets, basis spread and cross-currency trading, and streamlined operations introduce new opportunities for investors. Tokenization of real-world assets, Treasury instruments and investment funds allows a broader adoption for participants all over the world bridging the gap between developed and developing markets.

Leo Hmelnitsky, Strategic Partnerships

In 2025, tokenized traditional assets like bonds, equities, and real estate are likely to gain significant traction. This trend could redefine global trading strategies as markets adapt to 24/7 trading, fractional ownership, and improved liquidity for previously illiquid assets.

The growth of institutional liquidity pools in crypto markets will reshape global trading dynamics. With deeper liquidity and tighter spreads, crypto trading could become more efficient and attract larger players from traditional finance, particularly in emerging markets.

As global regulators establish clearer frameworks, institutional adoption of DeFi protocols will likely rise. This could lead to a hybrid model where decentralized platforms integrate with centralized oversight, offering traders new avenues for yield generation and arbitrage.

James Harris, Strategic Partnerships