Nowadays, there’s not a single person who hasn’t heard of crypto. The conversations about it have even reached government levels, making it nearly impossible not to get involved in some way. Since November 2024, we have heard about crypto literally every day, and almost every day, we can see big news regarding it. The same happened on January 23, 2025, when Trump signed executive orders regarding crypto and blockchain. You might also like: The focus is on strengthening US leadership in crypto tech | Opinion We can see how tokenized assets are becoming more and more popular with the worldwide increasing acceptance and understanding of their necessity. Industry projections show that tokenization could grow into a $50 trillion market by 2030 (or now even more?). And 2025 is set to be a significant year for this revolution, which is hard to argue with. Why? Let’s find out. 2025: The expected regulatory turning point We all know how the arrival of Donald Trump was anticipated in the crypto community, as he made several pro-crypto promises. After his inauguration, as I already mentioned, we’re already seeing progress. The first was the creation of a dedicated crypto task force within the SEC. The second is signed executive orders regarding cryptocurrencies, which is an even more significant step towards crypto regulations. However, it’s important to understand that there are no final regulations yet, but they are in the process of formation. There are some worries about the repeal of SAB 121, which is understandable, but with it, we’re also seeing the democratization of the industry. I believe we will soon see clear regulations. It’s important to know what is allowed and what isn’t. What will it give to the industry? A lot. First of all, as politicians begin to support cryptocurrencies, more people are likely to study and adopt them. And with clear regulations, the public’s trust is going to be significantly boosted. So, clear guidelines on what is permissible and what is not will attract even more investors since they will feel more confident about how companies are operating. But it’s important to remember that when it comes to regulations, the most important is to find its balance with innovation. We already have an example with Markets in Crypto-Assets Regulation that shows us that it’s not that easy. However, it’s important to mention that tokenized assets are not only crypto assets, it’s a broader term that covers the digitization of real assets or rights in the form of tokens on the blockchain. So, the new regulations will also benefit real-world assets, accelerating their adoption and providing the confidence needed to reach a potential $50 billion market this year. Some people, given all this, expected the market to grow significantly this year, but I think that it will happen gradually. At least, it should be this way. What is shaping the industry in 2025? A lot has happened in 2024 that is now developing even more in 2025. First and foremost, of course,—viewing Bitcoin ( BTC ) as a strategic reserve. This is, in fact, a very important moment for the industry. The fact that governments are showing confidence in Bitcoin as a store of value is increasing trust and adoption among institutional and retail investors. Also, the executive order signed on January 23 established the Presidential Working Group on Digital Asset Markets that will be working on evaluating the creation of a strategic national digital assets stockpile. Bitcoin wasn’t mentioned directly, but it’s too early to say if it will be the asset used for the stockpile. Anyway, if it’ll be any other digital asset—it’s not bad. Then comes AI, one of the most talked about phenomena right now. It is becoming a powerful enabler in many areas, and tokenized markets are not an exception. This is really not surprising, as AI-driven portfolio management could make tokenized assets more accessible to both retail and institutional investors. It can optimize investment strategies, minimize costs, and provide new opportunities in capital markets. 2025 predictions As governments are increasingly exploring tokenization in general, tokenized debt instruments might also become popular. For example, the G20 report highlights that tokenized government bonds could establish new standards for transparency and operational efficiency. This actually could redefine how public funds are managed and traded globally. Then comes AI (yes, the discussions about it really don’t stop). And the executive orders didn’t leave AI behind as well. Donald Trump has mentioned that it has a great potential to make money for the country’s economy. Again, we see support. Having such a big potential, the use of blockchain AI technology doesn’t stop and is projected to reach $703 million in 2025. Smart contracts, used to create digital assets, in turn, are expected to streamline financial processes, potentially saving $15-20 billion annually in global infrastructure costs. AI and tokenization will also likely lead to the emergence of new capital markets and small businesses, which will, in turn, expand opportunities for investors and simplify access to various financial instruments. In 2025, we can expect a better integration of DeFi with TradFi, giving businesses access to financial services and private markets. In fact, before, there were many discussions about bridging DeFi with TradFi, and RWAs are perfect for it. And interestingly, the tokenization of real estate, goods, and art will become more popular. It will allow ownership to be divided into tradable pieces and increase accessibility in these markets. Throughout the text, it was obvious that there were and will be many good changes for institutional investor participation, right? So, if 2024 was mainly a year of investments into tokenized assets, 2025 might be more about the real use of them. This might forever change the way countries trade. The broader impact By giving better access to assets, tokenization provides individuals with more opportunities and economic inclusion. Yes, challenges are still here, but they are soon to be cleared. And as we look to 2025, the question is no longer if tokenization will transform financial markets but how deeply it will change the global economy. And again, it’s far beyond Bitcoin. Read more: AI and crypto will come together in this Bitcoin cycle | Opinion Author: Anton Chashchin Anton Chashchin is the founder and CEO of private fintech group N7 Capital. N7 Capital focuses on developing innovative fintech solutions, with interests across fintech, banking, IT, e-commerce, blockchain, and digital assets. Mr. Chashchin is a seasoned investor, advisor, philanthropist, and visionary business leader with over 15 years of experience driving innovative projects across Europe and globally. Mr. Chashchin advises business leaders boards on growth strategies, operational scaling, funding guidance, and advancing financial technologies.
