GM, this inaugural issue launches our dedicated newsletter series tracking institutional crypto adoption. Drawing on our cross-border expertise, we’ll deliver regular insights that highlight how institutional trends interconnect across key markets worldwide.
The Institutional Transformation is Underway
The cryptocurrency landscape is experiencing a remarkable transformation that challenges everything we previously understood about digital assets. What was once viewed as a speculative technology is now capturing serious institutional attention with unprecedented momentum. A survey by Coinbase and EY-Parthenon reveals a compelling narrative of institutional confidence that signals a real shift in financial strategy.
An impressive 86% of institutional investors are either already invested in crypto or actively planning strategic allocations for 2025. This isn’t incremental interest—it represents a fundamental reevaluation of digital assets as a critical investment component. The momentum from 2024 was equally significant, with 84% of institutional players expanding their crypto investments, demonstrating a consistent and growing commitment to this emerging asset class.
Most notably, 59% of surveyed institutions are planning to allocate more than 5% of their AUM to cryptocurrencies. This marks a substantial leap from previous years, where crypto was often viewed as a peripheral investment. The rapid evolution of institutional perspective is fundamentally reshaping the financial landscape.
Regulatory Clarity: The Critical Enabler
The regulatory landscape has shifted quickly and effectively, setting the stage for a new era in institutional cryptocurrency adoption. A series of smart, focused moves has reshaped the environment in a big way.
On January 23, 2025, President Trump signed an Executive Order creating the Working Group on Digital Asset Markets, led by David Sacks. This group was tasked with reviewing current rules and suggesting fresh approaches to move the industry forward. That same day, the SEC introduced SAB 122, replacing the old SAB 121 that had forced crypto custodians to report liabilities on their balance sheets—a major step in freeing up the sector.
In February, two important laws were introduced: the GENIUS Act and the STABLE Act. These aim to build a clear, solid framework for payment stablecoins, and the effect was instant. Bank of America announced it would roll out a stablecoin as soon as the GENIUS Act gets the green light, showing just how much things are changing.
States are jumping in too. Texas led with two major initiatives: the March 6 Senate approval of the “Texas Strategic Bitcoin Reserve” for investing in major cryptocurrencies, followed by a March 11 proposal to allocate $250 million for digital assets. Utah joined the movement on March 7 by protecting residents’ rights to engage with blockchain technology. Looking ahead, Wyoming plans to launch its own stablecoin in Q2 2025, backed by cash and Treasury securities. These developments signal growing state-level support for cryptocurrency adoption.
Source: https://bitcoinreservemonitor.com/
The SEC has also flipped its approach to crypto completely. It scaled back its crypto investigations team into a smaller “cyber and emerging technology unit” and either paused or dropped lawsuits against major players like Coinbase, Yuga Labs, Kraken, Metamask (Consensys), Tron, Gemini, and OpenSea. It’s a clear sign of a fresh start.
This wave of clear regulations is a game-changer—it’s an assurance to investor confidence and opening the door wide for digital assets to take off globally. The future’s looking bright, and it’s happening now.
The Stablecoin Revolution
Stablecoins have emerged as a critical bridge between traditional and digital finance, offering unprecedented utility for institutional investors. Approximately half of the surveyed institutional investors are already leveraging stablecoins for a variety of sophisticated financial strategies, including yield generation, cross-border transactions, and foreign exchange optimization. Standard Chartered projects stablecoin usage in foreign exchange flows could reach 10% from today’s 1%, driven by the need for more efficient cross-border transactions.
Recently, several traditional financial institutions have made headlines with their plans to launch stablecoins, reflecting a growing trend in the integration of traditional finance with cryptocurrency. As of March 29, 2025, here’s a roundup of the latest developments:
Fidelity Investments, a major U.S. asset manager, is actively exploring the launch of a U.S. dollar-pegged stablecoin. Fidelity is in the final stages of testing this blockchain-based financial product, spurred by a shifting regulatory landscape and encouragement from the Trump administration’s pro-crypto stance. This move positions Fidelity to compete with dominant players like Tether (USDT) and Circle (USDC), which currently hold market capitalizations of $144 billion and $60 billion, respectively. Fidelity’s initiative also aligns with its broader push into digital assets, including a proposed Solana (SOL) exchange-traded fund (ETF).
Custodia and Vantage Bank recently launched a bank-issued stablecoin on the Ethereum blockchain. This launch highlights banks’ growing interest in offering stablecoin solutions. Similarly, BitGo rolled out its USDS stablecoin in January 2025, adding to the competitive landscape.
World Liberty Financial, a Trump-affiliated decentralized finance project, announced on March 25 its plans to launch USD1, a dollar-pegged stablecoin. Backed by U.S. dollar deposits, short-term Treasury bonds, and cash equivalents, with reserves custodied by BitGo, USD1 aims to appeal to institutional investors for secure cross-border transactions. This follows the project’s successful raise of over $550 million through token sales since October 2024.
JPM Coin, a dollar-backed cryptocurrency (stablecoin) from the bank JP Morgan Chase, is already clearing north of 1 billion each day. Bank of America’s CEO, Brian Moynihan, has expressed openness to entering the stablecoin market, potentially launching a dollar-pegged token. Meanwhile, a consortium including Robinhood, Kraken, and Galaxy Digital introduced USDG earlier in March, aiming to bolster the U.S. dollar’s global financial dominance through a joint stablecoin network.
Consider the big picture. The stablecoin market cap today is $227 Billion (60% YoY growth) but that only represents about 1.01% of the entire M2 USD money supply. While the stablecoin market is correctly dominated by Tether and Circle, we do see opportunities for distribution specific stablecoins and currency specific stablecoins coming into the mix more.
Top 10 Stablecoins by Market Cap
Source: rwa.xyz
Tokenization
The scope of assets undergoing tokenization has broadened significantly by 2025, encompassing a diverse range of real-world categories. Financial instruments lead the charge, with U.S. Treasury securities and money market funds being tokenized. Beyond financial securities, real estate has emerged as a prime candidate, with platforms like MetaWealth tokenizing residential and commercial properties to fractionalize ownership and unlock liquidity in a traditionally illiquid market. Commodities such as gold and silver are also gaining traction, with tokenized versions offered by firms like Paxos and Tether. Additionally, trade finance instruments—such as invoices and letters of credit—are being tokenized by Standard Chartered.
Fidelity has emerged as a key player in RWA tokenization with its filing in March 2025 to launch a tokenized share class of its $80 million Treasury Digital Fund on the Ethereum blockchain.
BlackRock, already a pioneer with its BUIDL fund launched in 2024, has continued to dominate the tokenized Treasury market into 2025, reinforcing its leadership in institutional adoption. In November 2024, BlackRock expanded BUIDL’s reach to five additional blockchains—Aptos, Avalanche, Arbitrum, Optimism, and Polygon—beyond its initial Ethereum deployment, showcasing a multi-chain strategy to maximize accessibility.
Franklin Templeton has also advanced its tokenization efforts, expanding its OnChain U.S. Government Money Fund (FOBXX) to the Solana blockchain in February 2025, ahead of competitors like BlackRock.
JPMorgan Chase has continued to push the boundaries of tokenization through its Onyx platform and has expanded its tokenization efforts beyond its JPM Coin to include a broader range of assets, such as tokenized bonds and trade finance instruments. In early 2025, JPMorgan collaborated with the Hong Kong Monetary Authority (HKMA) and Goldman Sachs to issue a $102 million digital Green Bond, utilizing its Goldman Sachs Digital Asset Platform (GS DAP) alongside Onyx.
MetaWealth, operating on the Solana blockchain, has carved out a niche in real estate tokenization, offering a compelling example of how specialized platforms are gaining institutional traction in 2025.
| Asset Class | On-Chain Value | Key Assets |
| U.S. Treasuries and Government Securities | ~$2–3 billion (excluding stablecoins) | • BlackRock’s BUIDL fund: $657+ million across multiple blockchains • Franklin Templeton’s FOBXX: $410+ million on mostly on Solana • Fidelity’s Treasury Digital Fund: $80+ million |
| Real Estate | ~$1–1.5 billion | • Led by platforms like MetaWealth (Solana) and RealT (Ethereum) • Figure’s Provenance blockchain reported $15B in tokenized real estate (includes off-chain facilitation) |
| Private Credit and Loans | ~$600–800 million | • DeFi protocols like Centrifuge, Goldfinch, and Maple Finance leading • JPMorgan’s Onyx platform tokenizing trade finance instruments (private blockchain so value no captured from onchain metrics) |
| Commodities (Gold, Silver, Diamonds) | ~$600–700 million | • Pax Gold (PAXG) reached $529.54M market cap by January 2025 • Matrixdock’s XAUm (gold) and Diamond Standard Fund (diamonds) • Meld Gold on Algorand adding smaller-scale contributions |
| Equities and Corporate Bonds | ~$200–300 million | • Goldman Sachs’ GS DAP platform and JPMorgan-HKMA collaboration tokenized $102M in Green Bonds • Exodus on Algorand offering tokenized stocks • Ondo introduces Ondo Global Markets (Ondo GM) to tokenize stocks, bonds and ETFs |
| Other Assets (Art, IP, Carbon Credits) | ~$100–200 million | • Art via Masterworks • Intellectual property through platforms like Anote Music on Algorand |
Source: DefiLlama; Dune; rwa.xyz
Corporate Activities Rising
Corporate engagement in the cryptocurrency space is heating up, with a flurry of mergers and acquisitions (M&A) signaling a robust trend toward consolidation and innovation in digital asset technologies.
- MoonPay recently executed a $100 million acquisition of Iron, a stablecoin infrastructure provider, exemplifying the increasing drive among cryptocurrency firms to strengthen their technological infrastructure.
- In February, Stripe completed its $1.1 billion acquisition of Bridge Network, initially announced in October 2024. This transaction, the largest in the payment company’s history, underscores its strategic intent to lead in the cryptocurrency payments sector.
- Robinhood has secured a $200 million agreement to acquire Bitstamp, a prominent European cryptocurrency exchange, enhancing its cryptocurrency operations with an anticipated closure in the first half of 2025.
- Circle has entered the tokenization landscape by acquiring Hashnote, a $1.3 billion issuer of real-world assets (RWAs), reinforcing its position within the rapidly developing market for tokenized assets.
Looking ahead, the M&A pipeline looks poised to grow even more active. As payment networks race to integrate stablecoins and tokenized asset issuance into their offerings, strategic buyouts are likely to accelerate, reshaping the competitive landscape.
Beyond M&A, Corporate America is weaving crypto into its core strategies with impressive sophistication. Following Microstrategy, GameStop recently completed a $1.5 billion offering of convertible senior notes to investors, with plans to use the proceeds in part to purchase Bitcoin. It stands out as a striking illustration of how companies are rethinking treasury management—transforming balance sheets into dynamic tools for capitalizing on the crypto boom. This wave of activity isn’t just a trend; it’s a clear sign that businesses are betting big on digital assets as a cornerstone of their future growth.
Beyond the US: Global Regulatory Momentum
While the US has been setting the pace, regulators worldwide are rapidly developing their own frameworks. Hong Kong made significant strides in December 2024 with its comprehensive Stablecoin Bill, the culmination of a year-long effort by the Hong Kong Monetary Authority (HKMA). The region is seeing notable innovation, with ChinaAMC (Hong Kong) launching the first retail tokenized money market fund, democratizing blockchain-based investments for individual investors. Additionally, HKMA’s stablecoin sandbox has attracted major players like Standard Chartered and HKT, focusing on HKD-backed stablecoins and cross-border settlement solutions.
Simultaneously, Abu Dhabi‘s financial regulator in the ADGM has established clear rules for fiat-backed stablecoins, positioning the UAE capital as an emerging leader in the crypto regulatory landscape.
Other markets are clearly taking cues from the US regulators while developing their own frameworks. We’ll be meeting with prospective investors, founders, and partners to gain firsthand insights into institutional adoption trends, particularly in Asian markets.
We’re excited to share these perspectives in the future as we travel through (mostly) Asian markets. If you’re in any of these locations, we’d welcome the opportunity to connect in person:
- April 7-10: Paris (Blockchain Week)
- April 14-18: London
- April 28-May 2: Dubai (Token 2049)
- May 4-7: Singapore
- May 8-11: Taiwan
- May 12: Hong Kong
- May 13-16: Toronto (Consensus)
The Broader Implications
We are witnessing a pivotal moment in financial history as institutional crypto adoption accelerates. The powerful convergence of regulatory clarity, corporate engagement, and sophisticated investment frameworks is creating unprecedented opportunities that transcend traditional financial boundaries.
Institutions moving decisively now will secure strategic advantages in this rapidly evolving landscape. The coming years will likely be remembered as the critical inflection point when digital assets transformed from experimental technology into essential components of the global financial infrastructure.
Your perspective matters to us. We welcome your feedback on this first issue and invite suggestions for specific topics, regions, or institutional developments you’d like us to explore in future editions. Please reach out with your thoughts—this series will evolve to address the questions and challenges most relevant to our stakeholders.