It’s a time of reflection and anticipation at The Fintech Times throughout December, as we look back at key developments over the past 12 months and explore what lies ahead for 2025.
As we move into 2025, Web3, tokenisation, and decentralised identity will play a pivotal role in shaping the future of digital finance. Blockchain will continue to drive innovation, while new developments in decentralised finance (DeFi), self-sovereign identity, and regulatory frameworks will influence how these technologies are adopted and integrated.
Here, industry experts provide their insights into the trends, challenges and opportunities that will define the coming year.
The growth of crypto trading and regulation in 2025
Gracy Chen, CEO, Bitget
Gracy Chen, CEO of Bitget, a global crypto exchange, predicts that the crypto trading sector will experience major regulatory developments and mainstream adoption in 2025.
“The cryptocurrency landscape has transformed so much in 2024, with Bitcoin setting the pace. As we look ahead to 2025, the crypto industry will evolve significantly,” she said.
“The perfect amalgamation of AI technologies will complement trading strategies and user experience while paying attention to the inclusion of PayFi in the overall streamlining of such activities.
“We anticipate a continued bullish trend in the crypto market. The expected appointment of a pro-crypto SEC chairperson and the establishment of a national Bitcoin reserve could significantly enhance institutional confidence.
Chen also added: “With predictions indicating BTC potential peaks of $500,000 by 2027 driven by regulatory shifts and growing blockchain adoption, the stage is set for an exciting year ahead in the world of cryptocurrency.”
The future of self-custodial wallets and user autonomy
James Toledano, COO of Unity Walle
As self-custodial wallets become more essential for user autonomy, James Toledano, COO of Unity Wallet, a self-custodial crypto wallet, highlights the importance of adaptability in a rapidly changing regulatory and technological environment in 2025.
“One of the most impactful changes in 2024 was the sustained momentum toward decentralisation, driven by both regulatory pressures and user preferences.” said Toledano. “With centralised exchanges losing market share, smaller competitors and decentralised platforms flourished, signaling a major shift in user behaviour.
“In 2025, we expect to see significant advancements in interoperability, enabling seamless cross-chain asset transfers and DApp integration. As the industry passes it’s 15-year mark, we should also expect to see plenty of business consolidation and regulations will likely make it harder to launch new currencies unless they have actual utility — this will be especially true in Europe with MiCA regulations. This is a good thing.”
He also added: “Regulation will remain a central narrative, with nations (especially the US), vying to attract crypto innovation – especially as blockchain applications extend beyond finance into areas like supply chain, identity verification, and gaming. I do think blockchain ID verification will be quite important over the next year or two as a means of ameliorating fraud, laundering and sanctions circumvention.”
Decentralised identity and Web3 interoperability
Lasha Antadze co-founder of Rarilabs,
Lasha Antadze, co-founder of Rarilabs, a contributor to Rarimo, sees decentralised identity as a game-changer for Web3 in 2025.
“I think industry trends will shift to focus on prioritiSing long-term value creation and sustainable growth throughout 2025. We will likely see this through an abstraction of ZK-identity technology to try and break down barriers to entry. For example, the creation of a simple-to-use decentralised identity infrastructure facilitated by universal hardware such as phones.
“I think the future of the space is empowering users to control their own decentralised identity in the palm of their hands. Your IDs, biometrics, and social graphs will live in your pocket, creating a decentralised network of unique on-chain identities that users own and are safe from outside interference.
“Further to this, I believe there will be a shift away from universal identities towards pluralistic identities that exist within their own appropriate social contexts. I believe that whether we are settling governance forms with AI or misinformation, the only systems that are dynamic and evolving enough have a chance to scale.”
The role of decentralised identities in Web3
Kitty Horlick, COO of Rarilabs,
Meanwhile, Kitty Horlick, COO of Rarilabs, expands on the importance of zero-knowledge proofs (ZKPs) in the realm of decentralised identity.
“By enabling individuals to verify specific attributes – like age or location – without revealing underlying personal information, ZKPs offer a compelling solution to the growing concerns surrounding data privacy and security,” said Horlick.
“By 2025, decentralised identity systems are poised to become an essential component of Web3, empowering individuals with the tools to own, manage, and control their identities.
“Self-sovereign identity, where users have full ownership over their personal data, will empower people to engage securely across dApps without relying on centralized identity providers. This shift will be fundamental in enabling greater participation in decentralized governance, economic systems, and digital communities.
“Modern problems require modern solutions, and decentralised identity systems are the way forward.”
Bitcoin’s role in decentralised finance and Layer 2 solutions
Alexei Zamyatin, co-founder of Build on Bitcoin
Looking ahead to 2025, Alexei Zamyatin, co-founder of Build on Bitcoin, a Layer 2 solution focusing on Bitcoin’s security and scalability, predicts that Bitcoin will continue to play a central role in decentralised finance.
“Over the past year, Bitcoin has seen significant technical improvements, with Bitcoin Layer 2 solutions and Bitcoin staking emerging as key topics of interest among VCs and investors. There is real momentum behind the growth of Bitcoin DeFi.
“Looking into 2025 and beyond, the advancement and implementation of BitVM will supercharge this growth. Layer-2s like BOB, that use BitVM to inherit the security of Bitcoin and to power trust-minimized BTC bridges, will become increasingly popular DeFi destinations.
“They will be able to onboard large institutions and retail holders that were previously reluctant to engage in Bitcoin finance via custodial bridges. We expect to see an explosion in products, protocols, and ways for people to interact with Bitcoin.”
Regulatory challenges for crypto and DeFi in 2025
Joey Garcia, director and head of public affairs, policy and regulation at Xapo Bank
As the regulatory landscape shifts, Joey Garcia, director and head of public affairs, policy and regulation at Xapo Bank, also discusses the ongoing regulatory challenges facing the crypto and DeFi sectors, as well as how regulations will develop in 2025.
““For many tech-based, fintech, or blockchain native businesses next year MiCA will represent quite a significant step into the world of regulation, and high regulatory standards being applied to a largely nascent space. However, they will also need to understand the implications of non-compliance.
“While MiCA is frequently portrayed as the financial regulatory equivalent of GDPR, setting a benchmark for the industry, I don’t fully agree with that characterisation.
“That said, it’s likely to be a significant reference point for countries developing their own frameworks. What will be interesting is observing whether President Trump will meet his goal of introducing the US’ first regulatory framework in his first 180 days (which feels unfeasible), as he pledged during his speech at BTC Nashville. If this does happen, it’s likely that existing frameworks, including MiCA, will be considered as part of the development process.”
“The UK has the opportunity to leverage its ‘second mover advantage’ to create a more balanced regulatory framework through collaboration with industry stakeholders and participants. The balance of being able to foster and support innovation, while creating a secure environment for inexperienced consumers can be a very fine line.”
The convergence of DeFi and fintech in 2025
June Ou, CEO of Provenance Blockchain
June Ou, CEO of Provenance Blockchain, a platform focused on blockchain for financial services, discusses the anticipated shift in DeFi and its integration with traditional fintech in 2025.
“2025 is the year DeFi takes off its training wheels and rides straight into the fintech fast lane. For too long, DeFi’s been that brilliant-but-awkward kid in the corner — full of potential but too complicated and a bit intimidating for the average person. That’s all about to change. Next year, we’ll see fintech and DeFi collide in a way that’s impossible to ignore.
“Picture intuitive apps that let people save, invest, and borrow with transparency and efficiency — and without needing a PhD in crypto. Platforms will feel safer, smoother, and, dare I say, kind of fun. And powering a lot of that magic will be blockchain infrastructure like Provenance Blockchain.
“Let’s be real: when people hear ‘fintech’, they’re not immediately thinking ‘blockchain’. But by 2025, they’ll feel the benefits whether they realise it or not — lower fees, faster transactions, instant settlement results into clarity as to where their money and assets are. No more worrying if their money is stuck in institution limbo. The line between DeFi and fintech will blur, and the result will be financial systems that are smarter, sleeker and better for everyone.”
Tokenisation driving financial inclusion in 2025
Darren Carvalho, co-CEO and co-founder of MetaWealth
As blockchain technology and tokenisation continue to advance, Darren Carvalho, co-CEO and co-founder of MetaWealth, a fintech specialising in real estate investments through tokenisation, believes they will play a key role in driving financial inclusion in 2025.
“In 2024, the fintech community has come to recognise that tokenisation and blockchain technology can unlock various hindrances of current legacy technology that is running finance today. Many firms have come into the spotlight with a focus on building real-world utility.
“Looking ahead to 2025, we’re anticipating a resurgence of blockchain-based fintechs, poised to deliver on their promises of enhancing financial inclusion. By unlocking access to previously unattainable investments and financial services through tokenisation, these innovative fintechs will empower many individuals and communities to better their finances.
“Moreover, blockchain integration into the traditional financial ecosystem is set to accelerate at an unprecedented pace, driven in part by progressive policy shifts under the incoming US administration. With these developments, tokenisation’s potential to reshape the financial landscape will finally come to fruition, and fintechs will be at the forefront of this growth, bridging the gap between innovative Web3 infrastructure and real-world impact.”
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