The cryptocurrency industry is entering 2025 with a wave of optimism, as industry leaders point to significant catalysts for growth. The election of US President-elect Donald Trump is seen as a pivotal factor in shaping the future of digital assets, with market players highlighting the potential for increased innovation, regulatory clarity, and global adoption.
Saad Ahmed, head of Asia business at Gemini, explained how developments in the United States often influence regulatory trends in other markets. “The appointment of a pro-crypto US president could encourage Asia-Pacific markets such as Singapore and Hong Kong to come up with more innovative financial products and refine their regulatory frameworks to drive adoption,” he said.
Pro-Crypto Policies Driving Innovation
Analysts and executives alike are optimistic that a Trump administration could provide much-needed regulatory clarity, spurring the expansion of areas such as tokenization and crypto payments. Lim Wee Kian, CEO of DBS Digital Exchange, believes this could pave the way for cross-border collaborations and unlock new opportunities for tokenized assets.
“With greater regulatory clarity in the US, established players in the global ecosystem could tap the American market,” Lim said. He also anticipates a surge in demand for tokenized securities catering to institutional investors and high-net-worth individuals, further bolstering growth in the sector.
Surge in Stablecoin Adoption
Stablecoins, pegged to traditional currencies or commodities, have witnessed exponential growth, with their total market capitalization reaching $190 billion. TripleA CEO Eric Barbier noted that stablecoins are driving a significant portion of crypto adoption due to their utility in payments and remittances.
“Stablecoins, in particular, are driving a significant portion of the adoption due to their practical use cases in payments and remittances,” Barbier said, adding that transaction volumes exceeded $5.2 trillion in 2024.
Bitcoin’s Rally and Institutional Support
Bitcoin remains the flagship cryptocurrency, with its price surging past $100,000 following Trump’s election win. Standard Chartered projects that Bitcoin could reach $200,000 by the end of 2025, fueled by institutional investments and potential government-backed initiatives, such as a proposal for the US Federal Reserve to accumulate one million Bitcoin over five years.
Challenges in Interoperability and Regulation
Despite the bullish sentiment, challenges remain. Industry leaders highlight the persistent issue of interoperability between blockchain networks, as well as the need for institutional-grade infrastructure and risk management frameworks.
Julian Sawyer, CEO of Zodia Custody, emphasized the need for greater connectivity between traditional finance and decentralized finance (DeFi) systems. Meanwhile, education and awareness about digital assets remain key barriers to entry for new investors.
Looking Ahead
As the industry continues to evolve, experts predict a greater focus on tokenizing real-world assets, developing decentralized finance platforms, and launching innovative financial products. The momentum from 2024, coupled with a pro-crypto US administration, positions the digital asset ecosystem for a transformative year ahead.
“The global cryptocurrency market is currently at approximately $3.63 trillion, up from $3 trillion in 2021,” said Lasanka Perera, CEO of Independent Reserve Singapore. “I am bullish that there is still untapped potential for further growth in 2025.”
