Recent security violations have shaken the cryptographic space, stressing the fact that security will continue to be a key goal for suppliers.
In today’s issue, Marcin Kaźmierczak of Redstone Oracles breaks down why 2025 will be a critical year for finance deffi and in chain.
Then, Kevin Tam examines the institutional adoption of Bitcoin, as shown by recent deposits 13-F and highlights key positions in Ask and Expert.
–Sarah Morton
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DEFI Renaissance – Why will 2025 be the year of decentralized and chain finances?
Bybit’s recent hacking for nearly 401,000 ETH, valued at around 1.5 billion dollars at that time, revealed that security will play a huge role in adopting additional cryptography. Can institutions develop at the head after such an incident? Undoubtedly. This is a question of progressive adoption alongside ensuring first -rate security procedures.
Increasing adoption of assets bearing the yield: clearing, puncture of liquids, replenishment and replenishment in liquid
In traditional finances, assets generating return are generally considered to be long -term investments that are stronger than non -productive investments, as they provide investors with cash flows and continuous income. This perspective helps to explain why some investors prefer Bitcoin ether. Ether is considered to be more “productive” because it feeds a network supporting a wide range of decentralized applications, benefiting from the effects of the network. Beyond that, ether can be marked out to gain a coherent yield, aligning well with the traditional evaluation methods that prioritize the in progress dividends. The growing interest in development, in particular in the context of yield generating assets, is obvious in the growth of liquid ignition, which allows an exercise without friction and economical in capital. This trend accelerated further in 2024 with the emergence of liquid replenishment – for example, Ether.Fi, a promotional replenishment platform, experienced explosive growth last year, with more than $ 8 billion in ether marked through its rails.
Source: Defi Lama, total value locked in ether.fi
The total quantity of marked ether should grow and play an important role in Defi. About a third of all ETH – or 90 billion dollars – is marked out, with other entries provided for traditional financial institutions exploring stimulation. As the markup becomes more accessible through fintech applications, some investors can go from guardian solutions to non -guardian solutions because they acquire a more in -depth understanding of blockchain technology.
Stable growth
Global demand for exposure to US dollars is huge and stablecoins are the most effective way to meet him. Stablescoins as USDC develop access to the conservation of the richness denominated in dollars and the exchange of rationalization value. In 2024, venture capital investments took place in Stablecoin projects, and we foresee a subsequent development in this space. Regulatory executives and EU mica have provided more explicit directives, to further legitimize stablescoins and probably cause higher adoption next year. In addition, Stablecoins are integrated into traditional financial systems. For example, Visa started using USDC on networks like Solana to facilitate faster and more effective payments. In addition, Paypal entered the market with PUSD, and Stripe made one of the most important acquisitions of crypto by buying Bridge to extend its stablecoin operations. In 2024, the total market capitalization of Stablecoin reached a record level, exceeding $ 200 billion and continuing to establish new records in 2025.
Source: Defi Llama, Totable Stable -Copyoins Bourser Caplette
Improved interoperability and non -friendly non -guardian solutions
A key challenge in DEFI is to move funds on networks to access various investments. By 2025, significant progress is provided to eliminate the need to fill the funds by introducing a “solution in one click”. This development should simplify the process for new DEFI users, probably attracting more participants in space. In addition, portfolio suppliers should improve finance security on the chain and rationalize the integration process by eliminating heavy crypto-native configurations. This change, motivated by innovations such as the account of abstraction of the account, aims to make the crypto more accessible and friendly to access chain finance. Currently, the irreversible nature of transactions and the prevalence of sophisticated scams dissuade many new users. However, improving security features should encourage more people to engage with decentralized finances.
Bitcoin reaching $ 100,000
Although the simple fact of holding Bitcoin on its native network is not intrinsically linked to chain finance, we are witnessing an increasing integration of Bitcoin with decentralized financial ecosystems. For example, approximately 0.5% of the total Bitcoin power supply via the Babylon’s implementation protocol is now locked to secure the proof chains (POS). The increased acceptance of bitcoin by large banks and certain governments should create effects to fall, modifying the public perception of digital currencies far from being considered as a speculative asset or illicit activities to be a legitimate financial instrument, bringing new users in mind.
-Maźmierczak, COO, Redstone Oracles
Ask an expert
Q: Can banks hold the crypto with Sab 122 from the dry?
A: The SEC 122 staff accounting bulletin can encourage banks to integrate digital assets into the regulated financial system. By opening competition, banks can compete with centralized exchanges. Banks can offer services such as loan, clearing and guard services supported by Bitcoin, which treat digital assets more such as traditional assets.
This is a positive decision in a more flexible regulatory approach and to balance investors’ protections with the operational realities of financial institutions.
From institutional investment to consumer recognition, this is another major change in the way the world operates and interacts with digital assets.
Q: What institutions (for example, sovereign funds, pensions, businesses, etc.) buy Bitcoin?
A: The accumulation of sovereign funds and pension funds is just beginning.
Mubadala Investment Company PJSC (the wealth fund belonging to the government of Abu Dhabi) holds $ 436 million in an ETF Bitcoin with overall assets under management of $ 302 billion. The Sovereign Heritage Fund of Abu Dhabi (AIDA) manages 1.7 Billion of combined dollars, indicating that their Bitcoin investment is a relatively small part of the global portfolio.
In addition, last fall, Mubadala proposed to acquire the Canadian Society for Active Management CI CI Corp. For $ 4.6 billion.
In the United States, the latest report by the State of Wisconsin Investment Board shows that its Bitcoin ETF holdings have more than doubled in more than $ 321 million.
Q: Bank on Bitcoin – Which Canadian bank leads the charge?
A: The recent deposits of the fourth quarter 2024 reveal that the Canadian banks of Annex 1, the managers of institutional funds, the pension funds and the sovereign funds have disclosed major Bitcoin holders (see graphics).
In particular, the Bank of Montreal now exceeds Canadian banks with $ 139 million in Spot Bitcoin ETF investment. And BMO Bitcoin Holdings went from zero to more than $ 100 million in a single year.
Currently, in North America, there are approximately 1,623 large entities with more than $ 25.8 billion in Bitcoin etps.
–Kevin Tam, specialist in digital active ingredients
Continue to read
- Citadel has announced its intention to offer an exchange of crypto and liquidity.
- Curious by bybit piracy? Stephen Sargeant has created a LinkedIn post summarizing some of the recovery efforts that are underway with the support of the cryptographic community.
- Coinbase announced last week that the SEC would abandon its trial against the scholarship.
