As we begin 2025, digital assets are transforming the financial services industry, driven by their unique capabilities to increase liquidity of real-world assets, provide access to international private markets and enable more efficient transactions. The past year has marked a significant shift in the digital asset landscape, particularly with the approval of Bitcoin ETFs demonstrating growing institutional demand. Major financial institutions are increasingly integrating digital asset offerings into their services to capture market share and meet client demands.
While regulatory frameworks remain more developed in jurisdictions outside the United States, the incoming administration in the United States government is expected to adopt a more favorable and proactive stance toward digital assets, potentially creating a constructive regulatory environment that fosters innovation, provides more clarity for market participants, and positions the United States as a global leader in blockchain and digital assets. Meanwhile, the industry continues to evolve globally, supported by improving digital infrastructure and broader market acceptance.
The evolution of blockchain extends beyond its foundational role in enabling cryptocurrencies, emerging as a transformative force in business operations, financial services and digital security. This transformation is particularly evident in key areas such as asset tokenization, crypto trading platforms, and digital payment solutions, where the underlying blockchain technology enables enhanced transaction transparency, immutability, and scalable operations.
Understanding and adapting to these changes isn’t just about staying competitive—it’s about capitalizing on new opportunities in lending, payments, asset management and operational efficiency.
Six market forces shaping the industry for 2025:
1. Leverage DeFi to access new financial opportunities
Decentralized Finance (DeFi) has matured significantly. The integration of DeFi with traditional finance represents a fundamental shift, offering businesses unprecedented access to financial services and private markets. Institutional-grade lending protocols now provide competitive rates and robust security measures, while advanced yield optimization strategies enable more efficient treasury management.
Cross-chain functionality has improved dramatically, reducing friction in international transactions. The emergence of hybrid financial products, combining traditional financial instruments with DeFi capabilities, is particularly noteworthy for businesses seeking to optimize their capital efficiency.
2. Prepare for evolving regulatory requirements
The regulatory landscape for digital assets is evolving rapidly on both international and domestic fronts. The European Union’s Markets in Crypto-Assets (MiCA) regulation has established a comprehensive blueprint for digital asset oversight, while the OECD’s Crypto-Asset Reporting Framework (CARF) is setting new standards for cross-border tax reporting. In the United States, regulatory developments are occurring at multiple levels, with states taking progressive stances through legislation and licensing frameworks, particularly in jurisdictions like Wyoming, Texas and Florida.
At the federal level, there’s a significant shift in approach, marked by increasing likelihood of a regulatory framework and the anticipated establishment of dedicated crypto policy roles. More specifically, the incoming Trump administration’s plans include the formation of a crypto advisory council comprised of industry experts tasked with designing a transparent regulatory framework to foster growth and innovation in the digital asset industry, the proposal to create a national Bitcoin reserve, and the appointment of pro-crypto officials to key positions.
This evolving U.S. regulatory environment, combined with established frameworks in jurisdictions like Singapore and the UAE, is helping shape a more mature global digital asset ecosystem. These developments are particularly significant as they coincide with broader institutional adoption, and the significant developments and trends at both federal and state levels.
3. View Bitcoin as a store of value
A historic shift is underway as the United States considers Bitcoin for a strategic reserve, intended to position the U.S. as a leader in cryptocurrency adoption and integration. As noted, Trump has proposed the creation of a national Bitcoin reserve.
Additionally, Senator Cynthia Lummis has introduced the Bitcoin Reserve Act, proposing that the U.S. government purchase 200,000 Bitcoin annually over five years, totaling 1 million Bitcoin. This development builds on precedents set by countries like El Salvador, which adopted Bitcoin as legal tender in 2021 alongside the U.S. dollar, and has since seen significant returns through not only strategic acquisitions to bolster its Bitcoin reserves but also as Bitcoin’s value has surged above $100,000.
In spite of Bitcoin’s continued volatility for the foreseeable future, this growing understanding and confidence in Bitcoin as a store of value is further evidenced by increasing institutional adoption, as major investment firms integrate digital assets into their portfolio strategies. For businesses, this evolution creates new opportunities in treasury management, international trade settlement and risk hedging strategies.
4. Integrate AI and Blockchain to drive innovation
The integration of AI and blockchain technology is creating new opportunities, with the market projected to exceed $703 million in 2025. This convergence of the Internet of Things (IoT) addresses critical challenges in data integrity and operational efficiency while democratizing access to AI capabilities. Smart contracts are becoming more sophisticated, for example, incorporating AI-driven conditional decision-making based on external data while maintaining blockchain’s transparency and security.
Enhanced privacy protocols ensure sensitive business data remains protected while enabling advanced analytics and automation. For example, techniques to mathematically prove the correctness of smart contract code are becoming more common, reducing vulnerabilities.
5. Rethink enterprise blockchain solutions and tokenomics
Enterprise blockchain adoption is accelerating, driven by the tokenization of real-world assets projected to reach $600 billion by 2030. Major financial institutions are leading implementation, with tokenized money market funds and digital gold tokens gaining traction. The number of banks issuing tokenized assets is expected to double in 2025, creating new opportunities for capital formation and asset management.
This transformation is significant for companies and funds of all sizes, offering improved access to capital markets, liquidity and democratization of data analytics through tokenomics to scale business operations.
6. Adopt new tax reporting and accounting standards
New Treasury regulations requiring Form 1099-DA reporting from 2025 represent a significant shift in tax compliance requirements for centralized crypto exchanges and brokers, with the outlook of similar reporting standards for decentralized crypto operators. The transition from universal to wallet-by-wallet tracking demands more sophisticated accounting practices and is likely indicative of the detailed tax reporting that can be expected in future guidance concerning digital assets.
The Financial Accounting Standards Board’s updated accounting standards introduce fair value measurement requirements and enhanced disclosure obligations, changing how businesses report digital asset holdings. This update now requires an entity to measure crypto assets at fair value each reporting period with changes in fair value recognized in net income. These new standards are intended to provide greater transparency to investors about the true value of these assets, while also demanding more detailed information about their digital asset holdings.
Considering the increasing possibilities businesses now have to incorporate crypto assets into their operations, transactions, and service offerings, or even as part of diversified corporate treasury holdings, this update will likely result in a positive development for all stakeholders.
Looking ahead
The convergence of institutional adoption, the alignment of the incoming administration in the U.S. with a pro-crypto perspective and deep industry knowledge and expertise across key agency posts, emerging focus towards a regulatory framework and technological innovation is creating unprecedented opportunities in the digital asset space. Success will increasingly depend on an organization’s ability to navigate new frameworks while maintaining operational efficiency and compliance. As the ecosystem matures, businesses that position themselves strategically will be best equipped to capitalize on these changes.
Maximize your blockchain strategy with BPM
BPM’s Blockchain and Digital Asset Industry Group leverages more than a decade of experience to guide organizations through the complexities of digital assets. Our comprehensive services include global tax structuring, financial audits, valuations, R&D tax credits and specialized IT security services. With deep industry knowledge, we help organizations optimize their blockchain strategies while ensuring compliance and maximizing opportunities in this evolving landscape.
To discuss how we can support your blockchain priorities and help position your business for success in 2025 and beyond, contact us.
