2025 Predictions: Institutional Crypto, Stablecoins & Bank Layer 2 Blockchains
Dec 30, 2024
auto_awesome
Yuval Rooz, COO and co-founder of Digital Asset, shares insights on the future of finance, making predictions for 2025. He highlights the importance of regulation for institutional crypto adoption and discusses collateral mobility's role in integrating real-world assets into blockchain finance. Rooz also touches on the expansion of use cases in the crypto space and the evolving landscape of stablecoins, including bank-issued options and their potential in emerging markets. The conversation emphasizes the merging paths of traditional finance and digital innovation.
A significant shift towards clearer regulations in the U.S. is predicted to attract institutional interest in cryptocurrencies by 2025.
The integration of AI with blockchain technology is expected to create novel transaction opportunities and enhance user privacy by 2025.
Deep dives
Regulatory Clarity as a Catalyst
A significant prediction for 2025 is that the U.S. will shift from regulation by enforcement to more regulatory clarity regarding cryptocurrencies. This anticipated shift is expected to stimulate interest from institutional players, who have been unable to move forward due to uncertainty about compliance and operational limits. With clearer regulations, organizations will have the opportunity to invest in blockchain technology, which is seen as a more efficient framework for financial transactions. This clarity could also prompt other countries to align with U.S. standards, leading to a global ripple effect in the cryptocurrency market.
Collaboration of Crypto and Traditional Finance
The podcast discusses how traditional finance and cryptocurrency are beginning to converge, particularly in the realm of collateral mobility. The movement to utilize real-world assets within blockchain systems will enhance efficiency and reduce risks associated with settlement failures. Financial institutions are increasingly motivated to adopt blockchain technology as it offers greater visibility and security in transactions, paralleling the benefits seen in traditional finance contexts. This growing integration suggests a future where crypto and traditional finance operate synergistically rather than in opposition.
Rise of Stablecoins and Innovative Payment Solutions
A notable prediction is that the demand for stablecoins, particularly those connected to banking systems, will significantly rise. This includes stablecoins that allow B2B transactions and payments in real-time, improving efficiency for both consumers and businesses. Companies are increasingly recognizing the utility of stablecoins, specifically in facilitating cross-border transactions with reduced friction. As the ecosystem develops, these stablecoins will enable more accessible and streamlined payment methods, especially in emerging markets.
The Intersection of AI and Crypto
The episode highlights an emerging trend where the integration of AI and blockchain technology is expected to gain widespread acceptance by 2025. As AI systems evolve and decentralization becomes a priority, new opportunities for interaction and transactions between AI agents and users will emerge. This could lead to novel forms of content creation and monetization through token economies, where private, edge computing models safeguard users' data. If successful, this intersection may transform how online engagements and financial transactions occur, pushing for more privacy-conscious and efficient user experiences.
On Ep. 14 of Tokenized, Simon Taylor, Head of Content & Strategy @ Sardine, and Cuy Sheffield, Head of Crypto @ Visa, are joined by Yuval Rooz, CEO @ Digital Asset to discuss their top predictions for 2025.
34:47 Cuy Sheffield prediction 3: Intersection of crypto & AI
This episode is brought to you by Visa
A world leader in digital payments, Visa is bridging the gap between traditional financial institutions and innovative blockchain networks, helping players in the payments ecosystem navigate the ever-evolving world of tokenized fiat currencies with confidence and ease. Learn more at visa.com/crypto.
This podcast is also supported by Digital Asset.
Digital Asset is excited to launch the Canton Network, a proven, trusted, and scaleable service that provides interoperability between institutional-grade tokenization platforms. The Global Synchronizer is now live, managed by Linux and institutions are actively using Canton Coin to manage the governance. No, the banks haven’t launched a token in the classic sense, this is much more interesting. They’ve done it to make all token networks interoperable. Find out more at canton.network
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode