The best cryptocurrency in 2025 will depend on market trends, adoption, innovation, and regulatory developments shaping the industry.
In 2024, cryptocurrency sprang back. Bitcoin hit a new high, surpassing $100,000, as it was bundled for the first time into exchange-traded funds sold by major financial firms.
The crypto sector has demonstrated maturity by advancements that have made its technology relevant to a far broader range of users than simply crypto aficionados.
This year, traditional finance will use blockchain, the distributed ledger technology behind cryptocurrencies like Bitcoin, to address long-standing economic issues. The US is also pursuing a more ambitious agenda to mainstream some digital assets, but not all.
Mastercard has long emphasized that in order for blockchain technology to reach its full potential, security, trust, and ease of use must be prioritized. With these in place, fintechs and financial institutions will be more likely to adopt blockchain technology and develop scalable use cases that might benefit millions of people. In reality, many are experimenting with tokenized representations of money and valuables on blockchain networks. Behind this trend is a desire to enhance efficiency and cut the costs of the day-to-day transactions that drive the global economy.
As we move ahead to the rest of 2025, I anticipate numerous changes in this sector, some caused by a shift in the regulatory environment, but the majority by the requirements of customers, companies, banks, and the economy.
Here are four areas to monitor in the next year:
01
Stablecoins or tokenized deposits? Both should find their place.
In 2023, the Federal Reserve reported that American banks had about $18 trillion in commercial bank deposits from corporations and individuals, including checking, savings, and time deposits. These deposits underpin huge sectors of the global economy, supporting bank loans and other financial services, boosting consumer spending, and facilitating trade and commerce. Still, innovations are required to give this type of money with the most recent fintech advancements.
To do this, banks are experimenting with tokenized deposits, which include issuing a token on a blockchain that symbolizes a deposit on the bank’s own ledger. Banks seek to speed up transaction settlement and allow programmable payments, where money may be given only once particular conditions are met.
Stablecoins, which are backed by fiat money at a 1:1 ratio, are gaining popularity, driven not just by trading activity but also by emerging use cases such as remittance and business-to-business transactions. As of this writing, there are around $200 billion worth of US dollar-based stablecoins in circulation. While stablecoins need funds to be locked up, they move in real time and allow for programmed payments. A clearer regulatory framework will make stablecoins safer and attract more participants and issuers.
I believe we will go to a future where tokenized commercial bank deposits and stablecoins coexist, with transactions such as tokenized asset purchases beginning with tokenized money in bank accounts and being settled with stablecoins.
02
Clearer rules give banks and other institutions a green light to adopt digital assets.
The inauguration of President Donald Trump, who has claimed to be the first “crypto president,” has turned the United States’ more crypto-critical posture on its head. On Trump’s second full day. The Securities and Exchange Commission formed a crypto task force led by Commissioner Hester Peirce to develop a regulatory framework. Two days later, the president issued an executive order. On digital assets, establishing a working group of key regulatory agencies to recommend clearer policies and new laws.
The European Union’s Markets in Crypto-Assets law became effective on December 30, making it the first major jurisdiction to implement a complete legal framework for cryptocurrency. It provides financial companies with a better understanding of how regulators see digital assets and currencies. As well as what a business must do, for example, to create a stablecoin. It has already encouraged more conventional players to participate. In 2025, politicians and regulators will likely provide greater — if not complete — clarification. Perhaps more of a request than a prediction: More clarity on both crypto regulations and how banks. May engage in the public blockchain system would enable more experimentation with the blockchain. Allowing innovation to flourish while preventing bad actors from bay.
03
Central banks will likely lean away from issuing digital currencies and into products for institutions.
Just a few years ago, several of the world’s central banks were considering the possibility of launching their own digital currencies. Central banks are increasingly recognizing that the private sector is capable of innovation. That creating digital currencies for the public is not a top priority. Trump’s executive order on digital assets prohibits the development and issuing of CBDCs, citing their potential danger to financial stability.
In 2025, I anticipate that other central banks will follow suit, shifting away from consumer-focused CBDCs, known as “retail” CBDCs. However, they will continue to seek digital assets directed at the banking industry and other financial institutions. Sometimes known as “wholesale” CBDCs. These CBDCs have the potential to significantly improve institutional settlement capabilities and accelerate the transfer of capital across countries.
04
Interoperability, standards and trust will take on even more importance.
The cryptocurrency sector now has a stronger base. The bad players have been pushed out of the way (or crashed badly). Easier access to digital assets has attracted more regular investors. Which has piqued the interest of traditionally risk-averse financial institutions such as mutual fund providers. These developments have also highlighted the importance of trust, norms, and seamless connectivity. In the wider financial system, which still accounts for the vast majority of monetary value.
Mastercard’s Multi-Token Network has gained popularity because to its improved security, scalability, and interoperability for digital asset transactions. Last year, the MTN project successfully completed its first live test with Standard Chartered Bank and Kinexys by J.P. Morgan.
Blockchain technology that is secure and trustworthy has the potential to drive innovation in both. The cryptocurrency and traditional financial industries. In 2025, blockchain technology is expected to be increasingly. More firmly integrated into banking and financial services allowing for speedier transactions. More transparency, new capabilities, and innovation.
Read more: Bitcoin Dips as Trump Announces 25% Tariffs