Digital assets are becoming a regular feature of institutional finance. With adoption growing quickly and investor confidence rising, the shift is already happening. By 2025, they will likely become a normal part of institutional operations.

The numbers speak for themselves: BlackRock's iShares Bitcoin Trust (IBIT) set a record by reaching $50 billion in assets in just 228 days, the fastest for any ETF. At the same time, a PwC report shows that 62% of institutional investors expect demand for cryptocurrencies to rise in the coming years.   

In this article, let’s break down the tools behind these changes and see what fintech companies need to do to keep up.

Key Game-Changers in Fintech 

In my opinion, one of the most interesting technologies that drives the industry of digital finance is AI. It develops very rapidly and is expected to reach $184 billion in 2024 and hit $826 billion by 2030. Fintech firms are increasingly relying on AI to prevent fraud, ensure compliance, and create personalised tools for customers. AI systems can process massive amounts of data in real-time, helping businesses identify risks, improve transparency, and optimise decision-making processes.

Another factor that I think greatly supports the rise of digital assets is open banking. Open banking facilitates secure data sharing between institutions and third-party providers. Its adoption has been steadily rising, with reports indicating that by January 2024, nearly 20% of UK small businesses had already embraced open banking solutions. Moreover, the technology is already used by the insurance, tech, e-commerce, and real estate sectors. It helps to develop a more integrated and connected financial network.

Altogether, these technologies facilitate the growing adoption of blockchain, which, in turn, redefines asset management, with tokenisation and stablecoins driving much of this change. Once seen as a fringe concept, blockchain has become a central part of financial innovation—by 2027, 10% of global GDP could be tokenised. 

Why Institutional Investors Target Digital Assets

Seeing the potential, it becomes unsurprising that institutional investors are increasingly turning to digital assets. A 2023 survey by Fidelity Digital Assets found that over 50% of questioned investors believe digital assets are here for the long term, with 65% planning to buy or invest in them in the future. 

The interest of institutional investors puts the industry in a more advantageous position. First of all, the influx of capital from institutional investors increases liquidity in the digital markets. A more liquid market means less volatility, which makes cryptocurrencies more attractive to a wide range of participants, including retail investors. The recent crypto market’s climb to ATH was also explained by the significant inflow of institutional capital.

How Regulations are Shaping the Future of Digital Assets

First of all, the attraction by institutional players stimulates infrastructure development. For the industry to work properly and smoothly, the updated infrastructure will guarantee security and transparency. Governments and regulators are already actively working in this field,  creating rules as the need for clear and consistent regulations has become more pressing.

For instance, the European Union’s Markets in Crypto-Assets Regulation (MiCA), introduced in 2023, represents a significant step toward setting standards for cryptocurrencies. Similarly, the International Organization of Securities Commissions (IOSCO) is preparing global frameworks for managing digital assets. In the UK, the Bank of England has required firms to outline their crypto strategies, signalling how seriously regulators are addressing the rise of digital assets. 

These regulations are designed to minimise risks such as fraud, market volatility, and operational instability while fostering innovation. Nevertheless, compliance remains a challenge, especially as regulations vary across regions, requiring fintech companies to implement strong strategies to adapt to this evolving environment.

Final thoughts

In 2025, I believe that fintech companies must focus on delivering trusted and easy-to-adopt solutions that meet the needs of institutions. To succeed, firms need to stay ahead of changing regulations, align with strong compliance practices, and find ways to connect traditional finance with digital innovation. Those who do will be well-prepared to meet challenges and take advantage of future opportunities. Companies that can move quickly and deliver real value will set themselves apart and drive the next stage of growth in digital finance.