Coinbase The latest market outlook for 2025 identifies tokenization, the resurgence of DeFi and the shift towards pro-crypto regulation in the US as key trends for the year ahead.
After years of regulatory uncertainty, Coinbase predicts 2025 as a pivotal year for US cryptocurrency regulation. The exchange said these developments could redefine how crypto integrates with traditional financial and regulatory systems in the coming year.
Pro-Crypto Regulation
According to the exchange, a bipartisan pro-crypto majority in Congress represents a welcome change, turning regulatory frameworks from obstacles to catalysts for industry growth. In addition, THe pushes for a strategic Bitcoin (Bitcoin) reserve further reinforces the evolving attitude among legislators.
In August, Sen Cynthia Loomis It has been suggested ideafollowed by Attention Pennsylvania The Bitcoin Strategic Reserve Act, which could allow a state to allocate 10 percent of its public capital to digital currencies.
While legal challenges remain, these initiatives reflect the government's growing interest in integrating Bitcoin into financial strategies.
Internationally, jurisdictions such as the European Union are also creating frameworks to foster innovation through phased regulation of markets in crypto-assets (MiCA) and financial hubs such as the United Arab Emirates, Hong Kong and Singapore. This global momentum could further drive crypto adoption and innovation.
A $30 trillion opportunity
Real-world asset (RWA) tokenization in 2024 reached $13.5 billion in December, with market growth of over 60%. Forecasts estimate that this sector could grow to a staggering $2 trillion to $30 trillion over the next five years.
The report noted that traditional financial institutions are increasingly using tokenization and using blockchain technology to enable instant settlements and 24-hour transactions. The scope of tokenization is expanding to include government securities, private credit, commodities, corporate bonds, and even real estate.
Challenges, such as the fragmentation of liquidity across multiple blockchains, remain, but the report points to advances in these areas that show tokenization can simplify investment and portfolio building processes.
DeFi returns the tool
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 markets as a key driver of DeFi's comeback.
A shift in the US regulatory environment could be a game changer, enabling stablecoin governance frameworks and institutional access to DeFi. Decentralized exchanges now account for 14% of centralized exchange transaction volume, up from 8% in early 2023, indicating growing adoption.
Christopher Waller, Governor of the Federal Reserve confirmation DeFi's complementary role in centralized financing lends credibility to the sector's potential.
In addition, innovations such as smart contracts and stablecoins are increasingly seen as tools to increase efficiency and reduce risk in traditional financial systems.
Stablecoins and ETFs
Stablecoins and ETFs show significant growth paths in 2024, and Coinbase sees them as key topics for 2025.
The market value of stablecoins increased by 48% to $193 billion, and forecasts indicate that the sector will reach $3 trillion by 2030.
Their role in facilitating faster and cheaper payments and addressing global financial needs positions them as a cornerstone of future adoption.
Meanwhile, Bitcoin and Ethereum (ETH) ETFs launched in 2024 have attracted considerable institutional attention. Their total net inflows have reached $40 billion in less than a year.
Innovations such as permissionless creations and redemptions for ETFs can improve efficiency and reduce costs, strengthening their role in the crypto ecosystem.
