The global cryptocurrency market has entered a phase of regulated innovation and rapid development. Stablecoin market capitalization continues to climb, Bitcoin’s price has surpassed $100,000, and decentralized finance ecosystems are diversifying at an unprecedented rate.
More importantly, a clear trend of comprehensive integration between crypto assets and the traditional financial system is emerging. Stablecoins are merging with payment infrastructures, banking institutions are actively expanding crypto services, and capital markets are increasingly intertwined with crypto markets.
Regulatory frameworks for stablecoins and cryptocurrencies are being accelerated worldwide, led by the United States. These developments are accelerating the mainstream adoption of crypto assets and providing the policy certainty needed for further integration.
Looking ahead, the fusion of stablecoins, cryptocurrencies, and traditional finance appears irreversible. Key areas to watch include stablecoins reshaping global payments, crypto assets upgrading financial infrastructure, and tokenization revolutionizing asset trading and settlement.
Stablecoin and Payment System Integration Gains Momentum
Stablecoins offer significant advantages in transaction speed and cost. As blockchain-based peer-to-peer payment instruments, they enable instant settlement. Traditional cross-border bank transfers can take up to five business days to settle, whereas stablecoin transfers are typically completed in under an hour.
The World Bank estimates the average cost of a traditional cross-border remittance at around 6.35%. In contrast, sending stablecoins on high-performance blockchains like Solana averages a cost of approximately $0.00025. Blockchain payment infrastructures, such as Ethereum and Tron, further optimize transactions through mechanisms like "gas fees" for priority management.
Stablecoins are being widely adopted for real-world economic and financial transactions. Beyond crypto trading, they are increasingly used for cross-border trade settlements, business-to-business payments, consumer purchases, payroll, and various financial investments.
Visa data indicates that as of April 2025, the stablecoin market exceeded $220 billion, with over 240 million active holding addresses in the preceding 12 months. Adjusted stablecoin payment transactions reached 1.4 billion, totaling $6.7 trillion in value.
Major stablecoin issuers are continuously exploring new use cases. Tether has partnered with UAE real estate platform Reelly Tech to enable property transactions using USDT. Physical retailers are also joining; Singapore's Metro Department Store began accepting stablecoins like USDT, USDC, and WUSD in 2025, while global retail giant SPAR (with over 13,900 stores across 48 countries) is testing crypto payments in Switzerland.
Crypto firms and traditional payment providers are collaborating to enhance domestic and international payment services. Tether made a strategic investment in digital payment fintech Fizen to bolster USDT's global utility. Circle, the issuer of USDC, partnered with Philippine e-wallet GCash to allow users to receive, buy, hold, and trade USDC.
Crypto exchanges like Kraken and OKX have partnered with Mastercard to launch crypto debit cards, enabling holders to spend cryptocurrencies and stablecoins at merchants worldwide, bridging crypto with daily consumption.
Traditional payment companies are also launching their own stablecoin initiatives to improve efficiency. PayPal introduced its USD-pegged stablecoin, PayPal USD, in 2020, allowing users to trade cryptocurrencies via its accounts. It recently expanded stablecoin payment scenarios through a partnership with Coinbase. Stripe acquired stablecoin platform Bridge in 2024 to support US businesses in using USDC for crypto payments.
Credit card giants are equally active. Visa partnered with Crypto.com in 2021 to facilitate cross-border transactions using USDC on the Ethereum blockchain. Mastercard is developing a "Multi-Token Network" to integrate on-chain and off-chain assets, providing a digital asset trading infrastructure for consumers, merchants, and financial institutions.
In summary, stablecoins significantly enhance payment efficiency and reduce cross-border costs. Collaboration between issuers, crypto exchanges, payment processors, and banks is accelerating, transforming stablecoins from a niche payment tool into a vital component of the global payment system. 👉 Explore advanced payment solutions
Banking Institutions Expand Crypto Services and Partnerships
Mainstream banks are experimenting with issuing their own stablecoins. JPMorgan Chase pioneered this in 2019 with JPM Coin. The pace has quickened since 2025. Standard Chartered Bank (Hong Kong) initiated a stablecoin sandbox test in 2024. Brazil's largest bank, Itau Unibanco, plans to launch its stablecoin, while Japan's second-largest financial group, Sumitomo Mitsui, is collaborating with blockchain firms to develop a fiat-backed stablecoin.
Japan's SBI Group and Circle launched USDC in Japan. The UAE's largest bank, First Abu Dhabi Bank, is exploring a dirham-backed stablecoin with sovereign wealth fund ADQ.
Banks are diversifying into stablecoin and cryptocurrency services. Since late 2024, the number of banks offering these services has grown rapidly, with leading institutions entering the fray and expanding their service ranges.
Hong Kong's virtual bank ZA BANK offers retail cryptocurrency trading, supporting purchases of Bitcoin and Ethereum with HKD and USD. Dubai's Emirates NBD provides crypto trading via its digital banking platform Liv X. European digital bank Bunq partnered with Kraken to launch Bunq Crypto, enabling users to buy, sell, and trade cryptocurrencies.
Furthermore, systemically important banks like Bank of New York Mellon have expanded services to stablecoin issuer Circle, allowing clients to send and receive payments for buying or selling Circle's stablecoins.
Banks are leveraging blockchain to upgrade financial infrastructure. JPMorgan rebranded JPM Coin to the blockchain payment platform Kinaxis in 2023, which now handles over $2 billion in daily transactions. Major institutions like Goldman Sachs, BlackRock, India's Axis Bank, and the London Stock Exchange use Kinaxis for cross-border payments and forex settlement.
In 2025, Swiss fintech Taurus launched Taurus-NETWORK, an interbank digital asset trading platform connecting global金融机构 for automated collateralized lending, real-time settlement, and operations without third-party dependency. Under Dubai’s Virtual Asset Regulatory Authority framework, Standard Chartered and OKX jointly launched a global staked asset mirroring project, accepting institutional client crypto and tokenized money market assets as OTC collateral.
In summary, banks are actively engaging in crypto through stablecoin issuance, trading services, and blockchain infrastructure upgrades. Their participation enhances liquidity, provides a secure entry for institutional investors, and accelerates the globalization and disintermediation of financial services.
Deepening Convergence Between Capital and Crypto Markets
Tokenized financial products are proliferating. Tokenization uses blockchain to enable instant buying, selling, and transfer without paperwork or intermediaries, significantly reducing costs, improving efficiency, and minimizing settlement risks.
Financial asset tokenization is leading the way, supported by regulators and major financial institutions. Singapore’s Project Guardian (2022), BlackRock’s tokenized fund BUIDL (2023), and Hong Kong’s Project Ensemble regulatory sandbox (2024) cover tokenized government bonds, corporate debt, funds, and equities.
In the 12 months to April 2025, the tokenized real-world asset (RWA) market doubled to over $22 billion, with over 100,000 holders and nearly 190 issuers. A McKinsey report from June 2024 predicts tokenized financial assets could reach $2 trillion by 2030 (excluding cryptocurrencies and stablecoins).
Global financial institutions accelerated tokenization in 2025. Fidelity launched a tokenized U.S. Treasury fund and a pension plan allowing direct crypto investment. Franklin Templeton introduced a tokenized money market fund. Singapore’s Invesco launched a tokenized private credit fund. China Asset Management (Hong Kong) and CPIC Investment Management (Hong Kong) offered retail tokenized funds and a tokenized USD money market fund, respectively.
In April 2025, UK fund services firm Calastone integrated Fireblocks’ blockchain infrastructure to help asset managers tokenize funds on its platform.
Asset managers are scaling crypto investments. The 2024 approvals of crypto ETFs in the U.S. and Hong Kong provided compliant channels for institutional investment, spurring direct crypto acquisitions by asset and brokerage firms.
In April 2025, BlackRock deposited 3,296 Bitcoin (worth approximately $254 million) with Coinbase Prime. State Street Global Advisors partnered with Galaxy Digital to launch a dual crypto-traditional investment platform, targeting $5 billion in crypto-related assets under management by 2026. Charles Schwab plans to introduce direct spot crypto trading within 12 months, while Goldman Sachs aims to expand digital asset trading, explore crypto lending, and heavily invest in tokenization.
Crypto and stock exchanges are merging. As regulatory clarity improves, crypto exchanges and brokers are pursuing mergers to integrate traditional equities, derivatives, and crypto trading services.
Kraken acquired retail futures and forex platform NinjaTrader. Coinbase is actively pursuing the acquisition of crypto derivatives exchange Deribit. Swapped.com acquired Web3 payment infrastructure firm Kado Software. Ripple purchased securities broker Hidden Road to offer institutional clients comprehensive fixed-income prime brokerage services.
UK crypto exchange Archax acquired FINRA and SEC-regulated broker Globacap Private Markets. Trading platform Robinhood is integrating crypto exchange Bitstamp. Reports suggest potential mergers between Coinbase and traditional exchanges like the NYSE or CME.
In summary, crypto ETFs opened正规 investment channels in 2024, tokenization improves financial asset trading efficiency, and mergers between crypto and stock exchanges are blending these markets, driving full integration between crypto and capital markets. 👉 View real-time market tools
Regulatory Shift Towards Supporting Crypto Innovation
U.S. stablecoin and crypto policies have shifted towards "supporting innovation." Following the return of the Trump administration, an executive order was signed to strengthen U.S. leadership in digital finance, establishing a presidential working group and advancing stablecoin and crypto legislation. The policy focus moved from strict limitations to "supporting innovation within a regulatory framework."
U.S. financial regulators have also changed their stance on bank involvement in crypto. Since March 2025, the FDIC, OCC, and Federal Reserve have revoked prior notice/approval requirements for banks engaging in crypto activities, allowing them to pursue legally permitted services with proper risk controls.
Major countries are accelerating stablecoin and crypto regulatory legislation. While jurisdictions like Malta, the UAE, Singapore, the EU, and Hong Kong established regulations earlier, the U.S. policy shift in 2025 has spurred global legislative momentum.
Recently, the UK, Australia, Japan, South Korea, Turkey, Argentina, Nigeria, the Cayman Islands, and Panama have all advanced or announced stablecoin and crypto bills. According to RIVER data disclosed by Cointelegraph, 47 countries have relaxed or simplified crypto regulations since 2020, while only four have tightened rules or banned trading and mining entirely.
Regulatory sandboxes for testing stablecoin and tokenization issuance have been explored since 2019 in Japan, Hong Kong, Dubai, and the U.S., balancing risk prevention with innovation.
Australia plans to introduce crypto legislation in 2025 to regulate stablecoin issuers, exchanges, custody services, and broker platforms, reducing de-banking of crypto firms. The UK Treasury announced collaboration with the U.S. to foster crypto industry growth, intending to制定新规 for Bitcoin and Ethereum service providers to boost investor confidence. Japan’s Financial Services Agency approved measures enhancing user protection during exchange bankruptcies while allowing crypto intermediary businesses and broadening stablecoin issuer asset investments.
The U.S. is leading governments in strategic Bitcoin reserve investments. In March 2025, an executive order established a "Strategic Bitcoin Reserve" and "Digital Asset Inventory," incorporating approximately 200,000 Bitcoin (worth around $20 billion) seized through legal actions. Budget-neutral strategies for further acquisitions are being explored, alongside parliamentary推进 for a "Bitcoin Strategic Reserve" bill.
Influenced by the U.S., other nations are considering similar reserves. Binance CEO Richard Teng stated in an April 2025 interview that the exchange advises multiple governments on establishing strategic Bitcoin reserves and crafting crypto regulations. Sovereign wealth funds in France, Norway, Saudi Arabia, Singapore, and Brunei are increasing crypto investments. Six UK digital economy associations recently urged the government to appoint a crypto envoy and develop a dedicated digital asset strategy to boost investment, jobs, and growth in the sector.
In summary, U.S. leadership has reduced policy uncertainty globally. Strategic Bitcoin investments by governments and sovereign funds are promoting legitimacy, alleviating concerns for traditional finance, and marking the maturation of crypto as an asset class.
Frequently Asked Questions
What are the main benefits of using stablecoins for payments?
Stablecoins offer near-instant settlement and significantly lower transaction costs compared to traditional banking systems. They operate on blockchain networks, enabling cross-border payments without intermediaries, reducing fees, and processing times from days to minutes.
How are banks integrating cryptocurrency services?
Banks are launching their own stablecoins, offering crypto trading and custody services to clients, and using blockchain technology to upgrade payment and settlement infrastructures. Partnerships with crypto exchanges and fintech firms are common to provide seamless access to digital assets.
What is asset tokenization and why is it important?
Tokenization converts physical or financial assets into digital tokens on a blockchain. It enables fractional ownership, increases liquidity, reduces settlement times and costs, and allows for global, 24/7 trading. This innovation is transforming how assets like bonds, real estate, and art are bought and sold.
How has the regulatory environment for cryptocurrencies changed?
There is a global trend towards clearer and more supportive regulations. Many countries are developing frameworks to oversee stablecoins, crypto exchanges, and tokenized assets, focusing on consumer protection while encouraging innovation. The U.S. has been a recent catalyst in shifting policies from restriction to managed support.
What is a strategic Bitcoin reserve?
A strategic Bitcoin reserve refers to a government holding Bitcoin as part of its national assets. This legitimizes Bitcoin as a store of value and can protect against currency volatility or serve as a long-term investment. The U.S. is leading this initiative by incorporating seized Bitcoin into a official reserve.
Are cryptocurrencies becoming mainstream investments?
Yes, with the approval of Bitcoin and Ethereum ETFs, direct investments by major corporations and asset managers, and increasing retail adoption, cryptocurrencies are transitioning from alternative investments to mainstream assets. Surveys show rapidly growing ownership rates in numerous developed countries.