The digital asset market is highly dynamic and influenced by many factors and In the last few years, sentiment about the industry has fluctuated as a result of new regulations, increased institutional adoption, new technology developments, and macro economic factors such as higher inflation. Positive sentiment often follows favorable developments on any of these fronts.
- Crypto has the potential to deliver an array of game-changing benefits in 2025: 60% of financial services organizations expect to attract more customers by accelerating their digital asset programs, 55% feel it will position them as an innovative organization, and 48% predict that it will deliver an uplift in revenue and profit. Whilst motivations for progressing digital asset programs in crypto businesses are broadly similar, almost half (48%) of crypto organizations think that it will help to future proof their organization. Almost a quarter (24%) think digital asset offerings will help with financial inclusion, perhaps allowing them to capture an underserved demographic.
- Overcoming barriers to crypto growth: Both crypto businesses (70%) and financial institutions (52%) alike report that regulatory uncertainty and a lack of clarity around compliance requirements has and continues to hold them back from progressing their digital asset strategies.
- A strong appetite for regulatory clarity: 96% of compliance and risk leaders state that well-defined regulatory frameworks are urgently needed for their organization to progress with its digital asset strategy. 89% believe that regulatory approval for cryptocurrencies will improve institutional adoption of crypto.
- The digital asset market is set to evolve and grow: Looking ahead to how digital assets are likely to evolve over the next five years, the research findings paint a picture of a highly dynamic market, characterized by growth and widespread adoption, innovation and more professional standards. Interestingly, 75% of respondents predict that Decentralized finance (DeFi) will grow consistently over the next five years, 71% expect blockchain intelligence to become commonplace in combating financial crime, and 67% believe that crypto will be used more widely to monetize social media platforms.
- The need for trusted partnerships within a dynamic ecosystem: To advance their digital asset programmes, both crypto businesses and wider financial institutions recognize the need to establish strong partnerships within a trusted eco-system. Indeed, 77% of compliance and risk leaders within financial institutions state it is important for them to find partners and crypto service providers to build out their capabilities.