Coinbase’s latest market outlook for 2025 identifies tokenization, DeFi resurgence, and a shift toward pro-crypto regulation in the US as key trends for the following year.
Coinbase predicts that US crypto legislation will reach a tipping point in 2025 after many years characterized by regulatory ambiguity. These developments, according to the exchange, could redefine in 2019 how crypto is integrated with traditional financial and regulatory systems.
Crypto regulation is pro-crypto
According to this exchange, the bipartisan majority for crypto in Congress is a sign of a shift that will transform regulatory frameworks into catalysts, which can help grow industry. Moreover, it is important to note that the increase in crypto-related regulations has been a catalyst for growth.He push for a Strategic Bitcoin Reserve, (BTC), solidifies further the shifting attitude among legislators.
In August, Senator Cynthia Lummis The idea was proposedThen, Pennsylvania’s consideration A Bitcoin Strategic Reserve Act could be passed, allowing the government to dedicate up to 10 percent of its overall budget to cryptocurrency.
These initiatives show that government is increasingly interested in Bitcoin, despite the legal issues.
On a global scale, financial hubs such as UAE, Hong Kong, Singapore, and the EU are building innovative frameworks through their Markets in Crypto-Assets Regulation (MiCA). The global trend could lead to a further increase in crypto adoption.
30 Trillion Dollar Opportunity
Tokenization of Real-World Assets (RWA) has gained a lot of traction since 2024. By December, the market had grown by 60%. The sector is expected to grow between 2 trillion dollars and 30 trillion dollars in the next 5 years, according to projections.
According to the report, traditional financial organizations are adopting blockchain technology in order to facilitate near-instantaneous transactions and 24-hour trading. Tokenization has expanded to include government securities, commodity bonds, corporate debt, and real estate.
Reports mention that there are still challenges, including liquidity fragmentation between multiple blockchains. However, the advancements made in this area suggest that tokenization may streamline portfolio building and investment processes.
DeFi brings the utility back
After an unsustainable cycle, decentralized financing is transitioning into a mature phase. Coinbase highlighted the growing synergy between off-chain and on-chain capital markets as a key driver of DeFi’s comeback.
A shift in US regulation could change the game, as it would enable stablecoin governance and access for institutions to DeFi. The decentralized exchanges account for 14 percent of the centralized trading volume, which is up from 8 percent in early 2023. This reflects a growing acceptance.
Federal Reserve Governor Christopher Waller’s endorsement of DeFi’s complementary role to centralized finance adds credibility to the sector’s potential.
Smart contracts and stablecoins, for example, are seen by many as a way to improve efficiency and lower risk within traditional financial systems.
Stablecoins, ETFs and other financial instruments
Coinbase sees stablecoins, crypto-based ETFs as important themes in 2025.
Market capitalization for stablecoins grew by 48%, to $193 Billion. Projections suggest that the industry could be worth $3 Trillion in 2030.
As a result of their ability to facilitate quicker, cheaper payment and address global financial needs, they are poised as the cornerstones for future adoption.
Spot Bitcoin and Ethereum (ETH), launched in the year 2024, attracted a lot of institutional interest. In less than one year, their combined net inflows reached $40 billion.
In-kind creations, ETF redemptions and other innovations could reduce costs and improve efficiency in the crypto industry.
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