Fidelity’s Vision for Digital Assets, What’s Ahead in 2025?

Fidelity Digital Assets has released its latest report and with it its bullish forecast, which could be some game-changer for the crypto market in 2025.

The report highlights three key trends that are likely to impact the digital asset landscape: nation-state adoption of Bitcoin, crypto becoming mainstream through structured digital asset products, and tokenization being a “killer app.”

Nation-state Bitcoin adoption will gain momentum

The report sheds light on how more countries like Bhutan and El Salvador could add more Bitcoin (BTC) to their national strategic reserves. According to Fidelity research analyst Matt Hogan, inflation, currency depreciation, and fiscal deficits are creating such geopolitical and economic pressures that nation states are actually considering whether they can use BTC as a strategic hedge. “It is likely that nation states will begin to accumulate in secret,” he said.

Such a geopolitical move could lead to a domino reaction, with rival banks and sovereign wealth funds seeking to position BTC as an equally compelling reserve asset. Fidelity warns that not adopting BTC could lead to greater risks than accepting the same in an increasingly unstable global economy.

Tokenization – the “preemptive implementation” of 2025

Tokenization is a paradigm shift that will be a game changer, as Fidelity states that the on-chain value of tokenized assets will double from $14 billion in 2024 to $30 billion in 2025. It extends beyond cryptocurrencies and covers a wide area. various assets, including car titles, intellectual property rights, and financial instruments such as treasury and stocks. As an example of how blockchain technology can seamlessly run these traditional processes, Fidelity cites California’s recent move to tokenize car titles on the Avalanche blockchain.

Tokenization has, of course, been called the key force behind the efficiency, liquidity and accessibility of financial systems, paving the way for further growth in adoption. This was also supported by MoonPay CEO Ivan Soto-Wright, who said stablecoins are the “perfect use case” for crypto. This transformation is aided by stablecoins as they serve as a stable medium of exchange within the tokenized ecosystem.

Digital asset products will see an increase

The report also notes this, with the launch of various structured digital asset products ranging from spot Bitcoin and Ethereum ETFs in 2024. More options for actively managed funds, dedicated digital asset portfolios, and BTC ETFs may enter the market in 2025. This will increase interest in crypto products. These financial structures could add a significant institutional-level offering to crypto and attract greater interest from both institutional and individual investors.

Fidelity thinks 2025 will be a big year for digital assets to become serious strategic financial instruments. This is the year the “cliff” in mainstream adoption could be crossed.