Fidelity: Tokenization is the “killer” app of 2025, and mainstream cryptocurrency adoption will grow

Fidelity Digital Assets said in its 2025 Outlook report that it acknowledged the rapid growth of stablecoins, but noted that they are not yet perfect products and expects the industry to take further steps to address compliance risks, improve cross-chain interoperability and integrate with traditional financial systems. The report said that stablecoins can coexist with tokenized bank deposits, improve the efficiency of tokenized securities trading, while maintaining the status of the US dollar as the global reserve currency. Fidelity also believes that tokenization is the "killer" application in 2025. The notional value of on-chain tokenized RWA has grown from $8 billion in 2023 to $14 billion, and is expected to reach $30 billion by 2025. Fidelity added: "As institutions increasingly recognize the advantages of leveraging blockchain, including faster, cheaper and relatively frictionless operability, we expect the growth of the tokenized asset class to continue to expand." Fidelity said that DeFi is also expected to continue to innovate in 2025, with growth in the fields of dedicated blockchains, decentralized social media, DePIN and crypto AI. Fidelity believes mainstream cryptocurrency adoption will grow this year and says it’s “not too late” for investors to enter the space, despite Bitcoin’s recent breakout above $100,000: “Indeed, we believe we may be at the dawn of a new era for digital assets, one that will last for years — even decades — and one that could see digital assets permeate every domain — industries, technologies, sectors, balance sheets, and even nation states.”