Major financial institutions like BlackRock and Fidelity are actively entering the crypto space through Bitcoin ETFs, stablecoin issuance, and asset tokenization. This involvement lends significant credibility to the asset class, destigmatizes it for traditional investors, and provides robust on-ramps for capital.
Stablecoins have grown into a $230 billion market, facilitating an estimated $27 trillion in on-chain settlement volume in 2024, more than Visa. Representing ~80% of on-chain transactions, they are becoming the foundational layer for a new, more efficient global financial system.
Following the major bankruptcies of 2022 (Luna, FTX), the crypto industry has undergone a reset, clearing out bad actors and noise. The subsequent period has been characterized by substantive building, improved infrastructure, and a notable increase in the quality of both technical and non-technical talent entering the space.
Beyond Bitcoin as a store of value, practical use cases are gaining significant traction. Blockchain-based prediction markets like Polymarket are proving to be powerful information tools, while DeFi protocols like Aave are managing tens of billions in assets, demonstrating the potential for more transparent and efficient financial services.
The tokenization of real-world assets (RWAs) is seen as a major advancement for capital markets. Initiatives like BlackRock tokenizing U.S. Treasuries and the growth of markets for tokenized collectibles indicate a future where physical and financial assets can be traded with greater efficiency and accessibility on-chain.
Keep pulling the thread on Ben Forman.