Traditional Finance’s Impact on Crypto in 2025
Introduction
In 2024, the crypto industry gained mainstream recognition and a seat at the table. As we enter 2025, it appears likely that traditional finance (TradFi) will have a significant impact on the crypto landscape.
At Decrypt, we peer into our Crypto Crystal Ball to divine which narratives are likely to shape the next 12 months and what those moves could mean for you.
TradFi’s Full Attention on Crypto
Ryne Miller, a veteran attorney with experience at the CFTC, FTX, and top corporate law firms, believes that TradFi mainstays have yet to unleash their full marketing, lobbying, and acquisition-related capabilities on the crypto industry.
Due to a multitude of factors, 2025 is likely to bring the full attention of Sauron’s Eye on crypto, and with it will likely come much upheaval.
Acquisitions and Mergers
Miller expects that many TradFi firms will begin eating up smaller crypto companies at a rapid pace.
“Many of the players who sat out are going to want to catch up quickly,” he said. “They’re going to buy well-managed, responsibly run crypto companies.”
This could lead to a shift in what constitutes a successful crypto company, as TradFi standards become more prominent. Firms that make a lot of money but don’t have squeaky clean internal structures might start looking less attractive, while lesser-known platforms may soon get scooped up by major financial services companies and enterprise groups.
A Split in the Crypto Community
Miller thinks that TradFi’s full-throated entrance to the crypto ecosystem in 2025 could finally bring about a clean rupture between the camps of privacy and decentralization-minded projects and founders, and blockchain companies seeking to integrate with major institutions and household brands.
“You might see two types of crypto communities [emerge],” he said. “One is purist, and the other is more of a packaged Wall Street product.”
Conclusion
In 2025, it appears likely that traditional finance will have a significant impact on the crypto landscape. As TradFi firms begin to acquire and merge with crypto companies, the industry may see a shift in what constitutes a successful crypto company. Additionally, the crypto community may split into two camps: one focused on decentralization and privacy, and the other focused on integration with major institutions and household brands.
FAQs
Q: What does Ryne Miller expect to happen in the crypto industry in 2025?
A: Miller expects that many TradFi firms will begin eating up smaller crypto companies at a rapid pace, and that the industry will see a shift in what constitutes a successful crypto company.
Q: Will the crypto community split into two camps?
A: Yes, Miller believes that TradFi’s full-throated entrance to the crypto ecosystem in 2025 could finally bring about a clean rupture between the camps of privacy and decentralization-minded projects and founders, and blockchain companies seeking to integrate with major institutions and household brands.
Q: What does this mean for crypto companies?
A: This could lead to a shift in what constitutes a successful crypto company, as TradFi standards become more prominent. Firms that make a lot of money but don’t have squeaky clean internal structures might start looking less attractive, while lesser-known platforms may soon get scooped up by major financial services companies and enterprise groups.
