2024 was a transformative year for crypto as the industry made enormous strides in institutional adoption, regulatory clarity and technological advancements. Now, as digital assets continue their march toward the financial mainstream, the Ripple team shares its predictions for the trends that will define the year ahead. From the emergence of new asset classes and crypto regulatory frameworks, to the continued growth of tokenization, they agree that the industry stands on the precipice of unprecedented adoption and growth.
Supercharged Institutional Adoption of Blockchain Technology
While many large institutions have already begun to integrate blockchain and crypto in focused efforts, the Ripple team expects those programs to gain steam more broadly across multiple fronts throughout 2025.
Markus Infanger, Senior Vice President of RippleX, suggests that increased institutional utilization of blockchain will be driven by market demand for operational efficiencies and enhanced connectivity. The introduction of new institutional-grade blockchain infrastructure and compliance tools means that major firms can now confidently deploy blockchain to achieve these benefits and even create new revenue streams through fractionalization which can expand access to tokenized assets.
He points to private equity as proof of this change, where firms such as KKR and Hamilton Lane have created tokenized funds. He believes that this signals a larger shift in how financial institutions are approaching asset management, one that is less constrained by barriers to investment and common frictions related to traditional financial rails.
“The enhanced visibility and seamless integration of blockchain technology enables institutions to optimize capital deployment and manage liquidity needs with greater precision absent time-zone limitations,” explains Infanger.
Ripple President, Monica Long, agrees, saying that tokenization and decentralized finance (DeFi) will evolve beyond crypto-specific applications to become institutional tools, with an emphasis on real-world asset (RWA) tokenization and practical use cases for global financial institutions.
“DeFi has primarily catered to crypto holders and traders seeking to maximize yield on digital assets, and we’re starting to see a shift toward applying DeFi to traditional and real-world financial use cases. Imagine FX markets with instant, cost-efficient settlements; commodities with transparent, tradable tokens; bonds with 24/7 trading and automated payments; and ETFs and mutual funds with real-time transactions,” adds Long.
Successful early tokenization use cases have already proven they can unlock liquidity, fractional ownership and broader accessibility—results which are catalyzing further digitization of assets in key markets like FX, commodities, bonds, ETFs, mutual funds and venture capital. By digitizing financial products, institutions can streamline processes, make settlement more efficient, improve transparency and achieve greater inclusivity.
Of the 15 large global banks that have already piloted tokenized asset products, Long predicts ten—including Deutsche Bank, HSBC, UBS, Standard Chartered and State Street—will launch market-ready offerings in 2025 by partnering with crypto-native infrastructure providers.
David Schwartz, Ripple’s Chief Technology Officer, says the coming era of institutional adoption will be made possible with Zero-Knowledge Proofs (ZKPs) that address privacy, scalability and interoperability. Coupled with advancements in smart contracts, institutions can use ZKPs to design sophisticated financial instruments—from automated syndicated loans to bespoke derivatives—tailored to their operational and regulatory needs.
“ZKPs will unlock the full potential of DeFi and make it possible for institutions to participate in this transformative technology because they meet regulatory compliance while maintaining confidentiality—a crucial requirement for widespread adoption,” explains Schwartz.
He points out that RippleX is at the forefront of these advancements, with upcoming DeFi features that allow for even greater customization and the potential for the integration of ZKPs into the XRP Ledger (XRPL).
Multi-Token Strategies Redefine Treasury Management
As part of this growing institutional embrace of crypto, more businesses will begin to hold a basket of digital assets on their balance sheet to support internal treasury management. Infanger says that major businesses like MicroStrategy have already proven the strategy, with 32 publicly traded companies currently holding approximately $56.6 billion worth of bitcoin in corporate treasuries.
According to Infanger: “This shift represents a fundamental change in how companies approach treasury management, combining inflation protection with enhanced operational capabilities.”
Long predicts that by year-end, 20% of major banks and public companies will allocate at least 2% of their treasury holdings to crypto—a trend we’re already seeing emerge. Amazon shareholders recently voted on this prospect, and Long expects other tech leaders like Meta, Apple, Netflix and Google to follow suit.
Much of this expansion is being driven by a combination of mounting monetary policy pressures, improved regulatory clarity and post-US election market dynamics. In Long’s view, the new Trump Administration’s crypto-friendly posture and the potential for a National Crypto Reserve will be a win for the wider crypto industry, a “rising tide that lifts all boats.”
Crypto Regulation Paves a Clear Path to Adoption
Institutional adoption and diversified crypto holdings both rely heavily on one crucial factor: regulation. For years, the lack of regulatory clarity has been a roadblock for the crypto industry in the US, but Ripple leaders are confident that 2025 will be a turning point.
Stu Alderoty, Ripple’s Chief Legal Officer, anticipates that a more pro-crypto administration in the US will usher in a new era of oversight with a healthier relationship between industry and regulators. He believes this shift will unlock suppressed potential and allow the market to thrive.
Globally, Alderoty says that regulatory leaders in markets like Singapore, the United Arab Emirates and the United Kingdom will drive a “race to the top” with frameworks that address key issues like tokenization standards and digital asset custody. With major regulators now engaged in the digital asset space, clear and consistent standards that enable mainstream adoption will follow. Ultimately, Aldertoy expects regulatory momentum around the world to shift the industry’s focus from “proof of concept” to creating real-world economic value.
New Asset Classes Take the Stage
With the crypto industry and progressive regulation advancing in tandem, the Ripple team anticipates that 2025 will see a growing role for stablecoins as well as the emergence of entirely new asset classes.
Ripple’s Senior Vice President of Stablecoins, Jack McDonald, says that while 2024 saw the proliferation of stablecoins, 2025 will be marked by a shift toward consolidation in favor of high-quality, regulated stablecoin issuers; only those with institutional backing and robust compliance frameworks will be able to endure a “war of attrition.”
“Exchanges and liquidity providers are becoming increasingly selective, prioritizing trusted, liquid stablecoins,” explains McDonald. “This pushes smaller issuers to the periphery and amplifies the dominance of market leaders.”
New demand drivers are also emerging. Once valued primarily as a crypto on-ramp, McDonald notes that stablecoins are increasingly viewed as the “killer application” for global payments, offering instant settlement 24/7, low costs and reduced friction. These same advantages are helping stablecoins gain traction in trading as more tokenized RWAs are brought on-chain, with fiat backed stablecoins like Ripple USD (RLUSD) proving ideal for new applications like posting of collateral.
Beyond stablecoins, tokenized money market funds could improve stability, compliance and institutional-grade risk management. Infanger suggests that these funds represent the next frontier for RWAs, bridging the gap between traditional finance and digital assets.
Meanwhile, Schwartz envisions the rise of purpose-built tokens designed for specific use cases. These tokens—exemplified by the XRPL and its Multi-Purpose Tokens—will represent a new standard in sophistication for tokenization, embedding metadata to streamline fractional ownership, ensure compliance and enable multi-asset structures. He says the adoption of purpose-built tokens will help pave the way for a more accessible, transparent and efficient global financial system.
A Year of Maturity and Momentum
2025 is shaping up to be another defining year for crypto and blockchain. Ripple leaders are confident that tokenization will continue to revolutionize institutional finance and enable new asset classes, diversified crypto strategies will reshape treasury management, and regulatory clarity will unlock new growth in support of innovation and inclusion. As these trends converge, blockchain and crypto are positioned to become indispensable pillars of the global economy.
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