Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Fidelity Report Insights on Digital Assets in 2025
Digital Assets | Jan 8, 2025
Image: Fidelity Digital Assets Look Ahead 2025 (Fidelity report)
Fidelity's Digital Assets 2025 Report Shows Innovation and Global Adoption
Since launching in 2018, Fidelity Digital Assets (FDA) provides secure custody, asset management, 24/7 trading, and crypto market analysis and develops blockchain solutions to bridge traditional finance with decentralized systems and helps institutional clients adopt digital assets confidently. FDA recently published 'Fidelity Digital Assets 2025 Looking Ahead' (34 page PDF report) offering some key data points and trends at the forefront of digital asset markets. This article provides an overview of the report to keep you informed.
Spot Bitcoin ETPs Continue to Grow
Investors seem to love Spot Bitcoin exchange-traded products -> view Bitcoin ETF Volume Tracker. By the end of 2024 they held over 1 million Bitcoin, which is equivalent to 5% of the total supply and assets under management of $114 billion. Comparatively, this growth far outpaces the adoption of early gold ETFs. 80% of the investments come from retail but institutional participation is rising due for advanced investment strategies to manage exposure and hedge risk.
Stablecoins Transactions Rival Visa Volume
Stablecoins processed (trading, remittances, cross border payments) $12 trillion in transfers in 2024 which is darn close to competitor Visa’s $13.2 trillion annual transaction volume. Daily trading volumes broke a record of $120 billion in November 2024.
See: National Bank Doubling Down on MicroStrategy’s Bitcoin Boom
Layer 2 solutions have drastically improved scalability by reducing fees by over 90% making stablecoins suitable for everyday transactions. Regulatory clarity in the EU and other regions will likely fuel further adoption.
Ethereum’s Scaling Upgrades Pays Off
Ethereum’s network upgrades are making transactions faster and cheaper. Rollups and Layer 2 solutions like Optimism and Arbitrum have cut fees by over 90%. The upcoming Prague/Electra upgrade will make Ethereum even quicker and more efficient by improving how it handles data. This is all to say that Ethereum is still a top choice for decentralized finance and digital assets.
Bitcoin Miners Adapt
Declining transaction fees on Bitcoin’s network is pushing miners to innovate. Protocols like DATUM are decentralizing mining which gives participants more control. Further, countries with low cost energy are emerging dominant players in the Bitcoin mining sector due to cost/margins.
Tokenization Expands
The tokenization of real world assets (RWAs) like real estate, bonds or even car titles into digital formats grew to $14 billion in 2024 ($8 billion in 2023) with projections reaching $30 billion by 2025. For example, California’s DMV is digitizing 42 million car titles using Avalanche to reduce costs, increase transparency, and democratize access to assets.
Governments Turn to Bitcoin
Governments are also increasing their Bitcoin reserves. The United States holds 198,000 Bitcoin ($20 billion), followed by China with 190,000 Bitcoin. Smaller countries like Bhutan and El Salvador are leveraging Bitcoin for economic security.
See: Investing in the Future of AI and Blockchain
While many of these bitcoin/crypto reserves are actually seized assets from various fraud cases, any active Bitcoin accumulation by governments is viewed by the market as a positive signal of the growing acceptance of Bitcoin as a financial reserve.
DeFi Lending Grows
Decentralized finance loans reached $55 billion in total value locked in 2024, up more than double from $22 billion in 2023. Also, Bitcoin’s integration into DeFi is creating new opportunities for collateralized loans. More and more traditional financial institutions are looking at these markets due to higher yields and the fact that President-elect Donald Trump's administration is pro-crypto and will provide much needed regulatory clarity.
Conclusion
The Fidelity Digital Assets 2025 Look Ahead Report provides a simple overview of some key trends that are moving crypto from a niche and volatile investment towards a mainstream financial investment and tool. The world has finally reached its tipping point of embracing these new technologies and is at work to redefine the global financial system of digital modern times.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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