- Fidelity predicts crypto’s rise as nation-states adopt Bitcoin for reserves, reshaping global finance by 2025.
- Tokenization to revolutionize finance, with on-chain asset values doubling to $30B by 2025, boosting efficiency and accessibility.
- Mainstream crypto integration via ETFs managed funds, and portfolios to drive institutional and retail adoption by 2025.
The latest report from Fidelity Digital Assets paints a rather grand picture of the future of cryptocurrency. The firm expects the following changes in the digital assets market by 2025: the emergence of new assets and the consolidation of significant changes that will affect the financial industry as a whole.
The report highlights three crucial developments: Bitcoin acceptance in the nation-state, the adoption of Bitcoin in mainstream through innovative digital products, and the development of tokenization. According to Fidelity, these changes will reshape the way the world looks at and uses crypto.
Crypto’s Tokenization Revolution
Some countries may covertly start buying Bitcoin as part of their assets within the national reserve. Inflation, currency devaluation, and fiscal deficit are more and more directing governments towards bitcoin as a store of value and a protection against volatility. According to Fidelity, it may become more dangerous to avoid Bitcoin than to use it in the current financial environment.
Perhaps, following the examples of Bhutan and El Salvador, more countries will join the club of countries that use Bitcoin as their currency. Other sovereign wealth funds and central banks may be in a hurry to place Bitcoin as an asset in their reserves. This geopolitical shift could potentially radically change the map of the world economy.
Tokenization is presented in the report as a revolutionary force. Fidelity believes that the on-chain tokenized asset values will rise from $14 billion in 2024 to $30 billion in 2025. It goes further than crypto to include cars, brands, patents and stocks.
Tokenized Ecosystem Expansion
The latest example of such implementation is a Californian car title tokenization on the Avalanche blockchain. MoonPay CEO Ivan Soto-Wright said that stablecoins are the “killer use case” in the tokenized ecosystem. Tokenization could improve the performance and inclusiveness of the financial sector and thus expand the reach of the technology.
Fidelity also expects the growth of structured digital asset products up to 2025. The new entry-level products may include spot Bitcoin ETFs, actively managed funds, and custom investment portfolios to attract institutional and retail investors. These products will offer institutional quality access to crypto assets which in turn will increase confidence and adoption.
The report outlines how, in 2025, digital assets will disrupt mainstream finance. The crypto’s as a strategic financial tool can turn out to be one of the biggest events in the world economy. According to Fidelity, this change will help bring early adoption and widespread acceptance much closer together.
This year could establish digital assets as one of the pillars of the new financial system. Fidelity’s vision of the future is to have cryptocurrency to be easily incorporated into the existing financial systems.
