Crypto’s future is starting to look more like a global financial system and less like a speculative playground, according to Andreessen Horowitz.
In its State of Crypto 2025 report, a16z analysts argue that the industry has entered a new era shaped by infrastructure upgrades, regulatory clarity and deeper ties with traditional finance. Among the most important trends for the coming year: stablecoin growth, real-world assets moving onchain, and new intersections with artificial intelligence (AI).
Stablecoins, which enable fast and cheap dollar transfers, are seeing wide adoption from institutions like Visa, Citi and PayPal. Visa said it sees strong demand in volatile emerging markets and cross-border payments. According to a16z, stablecoins handled $46 trillion in transactions over the past year — more than double PayPal — and now rival major networks like ACH and Visa. They’re also becoming major U.S. Treasury holders, surpassing countries like South Korea and Germany.
As regulatory efforts in the U.S. gain traction, stablecoins could strengthen the dollar’s global position. Legislation around market structure is expected to be a top priority in 2025, giving companies a clearer framework to launch products and onboard users.
Institutional momentum is picking up too. BlackRock and JPMorgan are building crypto partnerships, while Morgan Stanley plans to offer crypto trading on E*TRADE starting at the beginning of 2025. Exchange-traded funds (ETFs) for bitcoin (BTC) and ethereum (ETH) now hold over $175 billion combined, signaling a shift from fringe asset to portfolio staple.
Meanwhile, a quiet infrastructure revolution is underway. Ethereum upgrades and the rise of Solana have pushed blockchain transaction speeds to over 3,400 per second — closing in on the scale of credit card networks. These technical improvements, along with new privacy tools like zero-knowledge proofs and preparations for quantum-resistant encryption, are making blockchains more usable and secure.
Real-world assets such as U.S. Treasuries, commodities and equity instruments are beginning to move onchain, with $30 billion already tokenized. This shift could rewire how capital markets operate by creating more efficient settlement layers and round-the-clock liquidity.
AI is also becoming part of the equation. Developers are exploring how crypto tools like decentralized infrastructure and smart contracts can check the growing concentration of power in big tech’s hands. Though crypto has lost some engineering talent to AI startups, it’s also pulling new entrants from adjacent industries.
