Deng Chao, the CEO of HashKey Capital, has signaled a bright outlook for crypto-focused venture funding in 2025, with a renewed interest from venture capitalists in several key areas. He argues that stabilizing valuations from 2024 and favorable macro tailwinds in the United States, alongside clearer crypto regulatory frameworks, will attract more VC capital to crypto projects next year. At the same time, he cautions that macro risks—such as geopolitical tensions and potential spikes in deficit spending—could still drive price volatility and create uncertainty as the year unfolds. Against this backdrop, the market is increasingly eyeing stablecoins, real-world asset (RWA) tokenization, AI-enabled infrastructure, and broader crypto infrastructure as the core engines of investment activity in 2025.
Macro backdrop and venture capital dynamics for 2025
Deng Chao’s assessment centers on a confluence of supportive macro conditions and an evolving regulatory landscape that together could unlock more venture funding for crypto initiatives in 2025. He emphasizes that the macro environment is shifting toward stimulative policy measures in the United States and the formalization of crypto regulatory frameworks, which together create a favorable context for risk-taking by venture capital funds. In practical terms, this means VC firms may increasingly reallocate capital toward crypto projects that demonstrate clear use cases, scalable business models, and potential for regulatory compliance to unlock mainstream adoption. The anticipated inflow of funds would likely concentrate on the most mature and scalable segments within the crypto ecosystem, while early-stage bets on emerging technologies may still require longer maturation periods and higher risk appetite.
Chao notes that digital asset valuations rose meaningfully in 2024, a trend that can reinforce investor confidence in 2025. As valuations stabilize after a period of volatility, venture capitalists typically become more comfortable deploying larger sums into projects with proven traction and clear path to profitability. A key question for the sector remains how rapidly these funds can be deployed without triggering overheating in particular niches. In this context, stablecoins, RWA tokenization, AI-enabled infrastructure, and crypto market infrastructure stand out as areas where capital is most likely to flow, given their potential to deliver practical value, liquidity, and interoperability across traditional finance and crypto ecosystems.
Despite the generally optimistic outlook, dense macro headwinds can disrupt the pace of VC investment. Chao highlights geopolitical tensions and rising deficits as potential sources of inflationary pressure or macro-driven risk aversion. Such conditions could lead to higher price volatility across crypto assets, which in turn might influence the risk-adjusted returns that venture capital funds require to deploy new capital. For investors, this means a continued emphasis on risk management, hedging strategies, and the pursuit of diversified exposure across layers of the crypto stack—ranging from tokenized real assets to blockchain infrastructure and AI-integrated platforms.
This backdrop also underscores the relative performance of crypto venture funding against other technology sectors. Historically, crypto has shown higher volatility but also the potential for outsized gains when macro conditions align with technology adoption cycles. The analyst consensus remains that 2025 could see a re-acceleration of venture funding in crypto projects, but with a disciplined emphasis on compliance-ready, revenue-generating models. The result could be a more mature funding ecosystem that supports projects capable of delivering real-world utility, cross-border scalability, and enduring competitive advantages in the rapidly evolving digital asset economy.
In this environment, the role of macro tailwinds—the stimulative policy stance in major economies and the formalization of regulatory groundwork—becomes central to investment theses. For venture capital firms, these tailwinds can translate into more predictable demand dynamics, clearer asset classes, and an improved ability to structure deals around regulated products and services. A key theme for 2025 is the potential for multi-horizon investments: early-stage bets on groundbreaking technologies complemented by late-stage rounds into established platforms that have demonstrated regulatory compliance, robust liquidity mechanisms, and tangible user adoption. The expectation is not only growth in the number of deals but also a pronounced shift toward higher-quality deal flow where the risk/return profile aligns with institutional investor expectations.
Looking ahead, market participants will be watching closely how regulatory clarity translates into actual product offerings and monetization strategies. Projects that combine stablecoin utility, easy cross-border transfers, and compliant investment rails have the strongest potential to attract sustained VC backing. For technology and infrastructure players, the emphasis will be on scalable architectures, security at scale, interoperability with traditional finance, and the ability to deliver reliable performance in periods of market stress. In short, 2025 could be characterized by a refined, more disciplined approach to crypto venture funding, with capital increasingly directed toward those segments most likely to deliver long-term value and broad-based adoption.
In sum, the macro environment, regulatory clarity, and improved digital asset valuations create a favorable climate for venture funding in 2025. Yet, investors remain mindful of macro uncertainties that could inject volatility into the market. The balanced view is that while more capital is likely to flow into crypto projects, the emphasis will be on those with robust business models, clear regulatory alignment, and genuine use cases across stablecoins, RWA tokenization, and high-potential infrastructure.
Subsection: Distilled implications for crypto funding strategy
- Embrace stable, revenue-generating models that can survive regulatory scrutiny and market volatility.
- Prioritize projects with practical uses in payments, settlement, and cross-border transfers enabled by stablecoins.
- Accelerate initiatives in real-world asset tokenization to unlock high-value liquidity across traditional markets.
- Invest in AI-enabled blockchain infrastructure and scalable, secure architectures to support enterprise adoption.
- Maintain a diversified approach across geographies to capture opportunities in emerging markets and developed economies alike.
- Build robust risk management and governance frameworks to satisfy institutional investors and regulators.
Stablecoins: proven use case in 2024 and implications for emerging markets
Stablecoins rose to become the strongest proven use case for crypto in 2024, according to industry observers and market participants. The core insight from HashKey Capital’s leadership is that stablecoins served as a foundational tool for liquidity, payments, and cross-border activity, particularly in markets where traditional banking remains either costly or inaccessible. VCs increasingly anchored their investment theses on the stability, reliability, and regulatory readiness of stablecoin ecosystems, recognizing their potential to unlock practical financial services in diverse economic environments.
Dollar-pegged stablecoins have emerged as a central instrument in real-world finance. They function as stores of value in contexts where local fiat currencies depreciate rapidly or where capital controls restrict cross-border movement. In many developing and transition economies, individuals turn to stablecoins as a hedge against inflation and currency devaluation, creating demand for stable, accessible digital assets that offer near-instant settlement and global usability. The use cases extend beyond consumer wallets to include merchant payments, remittances, and decentralized financial protocols that require stable liquidity to operate effectively.
The broader adoption of stablecoins is closely tied to the growth of real-world asset tokenization. By tying the value of digital tokens to tangible assets—such as government securities, corporate bonds, or commodity-linked instruments—stablecoins can gain further credibility and utility as cross-border settlement tools. The combined engine of stablecoins and tokenized real assets presents a compelling opportunity for investors seeking to bridge the gap between conventional asset classes and crypto infrastructure. This alignment also enhances the resilience of the crypto ecosystem by embedding it within familiar financial frameworks and risk management practices.
From a deployment perspective, stablecoins offer several advantages that address core barriers to financial inclusion. They typically feature lower transaction costs, near-instant finality, and the requirement of a digital wallet rather than a traditional bank account. This makes stablecoins particularly attractive for enabling banking-like services to the underbanked and unbanked populations. In regions where bank branches are scarce or where financial services are prohibitively expensive, stablecoins can democratize access to payments, savings, and micro-investments. The World Bank’s data underscores the scale of the opportunity: hundreds of millions of people remain without traditional banking access, and mobile internet-enabled wallets provide a pathway to inclusive financial services that were previously out of reach.
Looking ahead, the stablecoin sector is expected to continue expanding, driven by regulatory clarity, improved custody and compliance standards, and broader merchant adoption. The sector’s growth is not solely about currency stability; it also encompasses the acceleration of programmable money, automated settlement layers, and compatibility with decentralized finance (DeFi) ecosystems. As stablecoins become more integrated with national digital payment rails, central banks and governments are increasingly evaluating the potential for official digital currencies or regulated stablecoin frameworks that complement existing fiat systems. This evolving landscape could significantly shape venture investment strategies, with capital gravitating toward projects that demonstrate robust risk controls, compliance readiness, and scalable use cases across real-world markets.
In emerging markets, stablecoins serve as a practical instrument for maintaining purchasing power, facilitating cross-border transactions, and enabling access to international financial markets. The adoption curve in these economies tends to favor stablecoins that are highly liquid, widely accepted, and interoperable with local financial infrastructure. Venture capital interest in this segment is accelerating as entrepreneurs build platforms that simplify stablecoin use for everyday payments, remittances, and digital wallets. The potential for disruption is significant: by reducing reliance on traditional bank accounts and enabling faster, cheaper cross-border flows, stablecoins can unlock new forms of economic activity and financial inclusion that were previously hindered by infrastructure gaps.
From an investment standpoint, the stability and utility of stablecoins offer a compelling risk-adjusted profile for venture capital. They provide a relatively predictable revenue model through custodial services, liquidity provision, and ecosystem partnerships, while enabling scalable network effects as more users and merchants join the system. The emphasis on security, regulatory compliance, and interoperability remains critical to attracting larger pools of institutional capital. For 2025, the trajectory suggests continued VC interest in stablecoins, particularly those with strong compliance frameworks, transparent governance, and robust integration with real-world assets and payment ecosystems.
Key takeaways for investors and market participants include:
- Stablecoins remain a central pillar of crypto adoption, with sustained demand across use cases from payments to remittances and liquidity provisioning.
- Emerging markets represent a primary growth frontier, where stablecoins can offer meaningful advantages over traditional financial pathways.
- Tokenized real assets can augment the value proposition of stablecoins, enabling diversified and collateral-backed liquidity.
- Regulatory clarity and risk controls will be decisive factors in attracting large-scale institutional investment.
Real-world asset (RWA) tokenization: scope, momentum, and market potential
Real-world asset tokenization has evolved from a niche concept to a mainstream investment paradigm within the crypto ecosystem. The central idea is to tokenize traditional asset classes—government securities, stocks, corporate bonds, real assets, and even stablecoins themselves—on blockchain ledgers to improve liquidity, transparency, and accessibility. By converting physical and financial instruments into digital tokens, investors can trade fractions of otherwise illiquid assets, enabling more efficient price discovery and broader participation across markets.
HashKey Capital’s leadership highlights RWA tokenization as a major area of focus for venture capital in 2025. The rationale rests on several converging factors: improved settlement speeds, fractional ownership, democratized access to high-value assets, and the potential to unlock new liquidity pools that were previously constrained by traditional market structures. Tokenization brings a new layer of liquidity to assets that have historically been constrained by limited trading windows and market liquidity frictions. This democratization of access is especially impactful for investors in emerging markets who seek exposure to high-quality assets via digital rails.
In practice, the RWA ecosystem encompasses a broad spectrum of asset classes. Government securities and corporate bonds remain core components because of their established cash flow characteristics and credit profiles. Equities and equity-linked instruments also feature prominently as tokenized shares or derivative instruments that track the performance of underlying equities. Beyond conventional financial assets, tokenized real assets extend to tangible items such as real estate, commodities, collectibles, and even specialized financial products that combine multiple asset types into structured tokens. The tokenization process is underpinned by smart contracts, enabling automated settlement, governance, and compliance checks that align with regulatory expectations.
The market potential for RWA tokenization is vast, with projections pointing toward a multi-trillion-dollar opportunity by the end of the decade. Analysts anticipate that real-world asset tokenization could reach tens of trillions in total value by 2030 when combining tokenized securities, tokenized debt instruments, tokenized commodities, and other tokenized real assets. This optimistic forecast rests on several drivers: greater investor demand for diversified exposure, improved liquidity in asset classes that have long been perceived as relatively illiquid, and the ability to issue tokenized instruments on regulated, compliant platforms that meet the standards of traditional finance.
RWA tokenization also intersects with stablecoins and cross-border settlement. Tokenized assets can be issued in a regulated tokenized form that leverages stablecoins for liquidity and digital settlement. This synergy accelerates the pace of trading, lowers friction, and broadens access for global participants. Furthermore, tokenization can facilitate new forms of collateral arrangements for DeFi protocols and traditional lenders, enabling more flexible lending terms and more efficient capital allocation.
As the RWA ecosystem evolves, several critical success factors emerge for stakeholders:
- Regulatory clarity and standardized compliance frameworks to ensure investor protection and market integrity.
- Strong custody, risk management, and anti-fraud measures to safeguard tokenized assets.
- Interoperability across blockchains and traditional financial rails to enable broad participation and liquidity.
- Clear valuation methodologies and auditable on-chain data to support reliable pricing and trust among participants.
The potential is that tokenized RWAs can bridge two parallel economies—the traditional financial system and the burgeoning crypto ecosystem—creating a seamless continuum for capital to move between asset classes and geographies. This could unlock unprecedented liquidity for assets such as government securities and high-grade corporate bonds while enabling retail and institutional investors to access opportunities previously reserved for a limited set of market participants.
Large-scale adoption will depend on how quickly issuers and regulators embrace standardized tokenization practices, how effectively platforms can deliver secure custody and settlement, and how well the market can translate tokenized assets into practical, revenue-generating products. The vision is one where tokenized real assets serve as a reliable backbone for blockchain-based finance, supporting sophisticated investment strategies, enhanced capital formation, and new forms of risk transfer that align with evolving investor preferences and regulatory expectations.
Market forecasts and VC investment trajectories for 2025
Investors and market observers have been tracking crypto venture funding trends with growing scrutiny as the sector matures. The year-over-year dynamics from 2023 to 2024 show that crypto companies raised approximately 13.6 billion USD in 2024, up from 10.1 billion USD in 2023. This growth signals an appetite among venture capitalists to target crypto-focused opportunities, particularly in segments tied to stablecoins, RWA tokenization, and infrastructure. Market data platforms and industry analyses suggest that investment activity could continue to ramp in 2025, albeit with caution given macro risks and regulatory developments.
Industry forecasts indicate a continued positive trajectory for crypto VC funding in 2025, with projections suggesting a further increase from the prior year’s totals. Some market observers have projected 2025 funding to reach around 18 billion USD for crypto projects, signaling a robust but disciplined expansion in venture activity. This outlook is often tied to the expectation that the sector will benefit from stronger regulatory clarity, improved compliance frameworks, and broader institutional interest, all of which can help unlock larger rounds and more strategic partnerships.
A widely cited prediction from market analytics groups and industry players is that 2025 would see a sizable year-over-year increase in venture funding for crypto projects but still fall short of the peaks seen during the 2021 bull market. The rationale is that while macro tailwinds may lift funding activity, returns and valuations may not immediately replicate the exuberance of 2021 due to higher risk management standards, increased due diligence, and the need to demonstrate sustainable business models. This nuanced view aligns with a broader trend toward more disciplined capital deployment, where investors seek defensible moats, clear monetization paths, and evidence of regulatory compliance before committing large sums.
Within the 2024-2025 funding landscape, Galaxy Digital and other market participants have forecasted that VC investment in crypto could grow by around 50 percent year over year in 2025, albeit with attention to not surpass the highs achieved in 2021–2022. This implies a significant expansion of venture funding, but with measured expectations about peak adoption and the sustainability of high valuations. The 2025 forecast also suggests that while more capital will flow into crypto ventures, a talents mix—comprising founders with strong execution capabilities, institutional-grade governance, and scalable product-market fit—will determine which projects can ride the wave of investor interest through 2025 and beyond.
Analysts emphasize several sectors as likely magnets for VC capital in 2025. Stablecoins, RWA tokenization, AI-enabled infrastructure, and cross-border payment solutions are frequently highlighted as core beneficiaries of continued investment. In addition, there is growing interest in cybersecurity, risk management, on-chain data provenance, and regulatory technology that helps bring crypto products into compliance with evolving rules. The combination of demand for practical, revenue-generating use cases and the necessity of robust risk management will shape the investment thesis for funds seeking to balance potential returns with prudent risk controls.
To navigate the 2025 funding landscape, venture capitalists are expected to prioritize certain characteristics in crypto projects:
- Demonstrated revenue generation and scalable business models.
- Compliance-centric product design and transparent governance structures.
- Robust security, custody, and fraud prevention measures.
- Clear pathways to liquidity, including exchange listings, market-making arrangements, and liquidity pools.
- Real-world utility with measurable user adoption and friction reduction in real financial activities.
Forecasts also highlight that regional diversification will play a critical role. Investors are increasingly looking at opportunities across different geographies to benefit from regional growth dynamics, regulatory differences, and market maturities. This approach aims to balance the potential for outsized returns with the operational realities of launching and scaling crypto projects in diverse regulatory environments. Overall, the 2025 VC investment outlook remains optimistic but prudently grounded in macro realities and regulatory progress, with a focus on investments that combine real-world utility, regulatory alignment, and sustainable revenue streams.
Subsection: Implications for founders and operators
- Build on-shore to regulatory-compliant platforms that can operate across multiple jurisdictions.
- Demonstrate real revenue streams and clear monetization strategies early in product development.
- Prioritize security, governance, and transparency to attract institutional investors.
- Design products with cross-border usability and liquidity in mind to leverage global capital flows.
- Invest in robust data and analytics to quantify impact, user growth, and ROI for stakeholders.
Sector opportunities: AI integration, infrastructure, and cross-border finance
Amid the brisk activity in stablecoins and RWA tokenization, the crypto landscape for 2025 places a strong emphasis on artificial intelligence integration, market-ready infrastructure, and cross-border financial solutions. The convergence of AI capabilities with blockchain technology promises to unlock new efficiencies, from predictive analytics for DeFi strategies to autonomous risk management and enhanced on-chain data processing. Investors are keen on platforms that marry AI with secure, scalable blockchain architectures, enabling smarter investment decisions, automated monitoring, and improved user experiences across crypto products.
Infrastructure developments are likewise central to the 2025 investment thesis. The demand for robust, scalable, secure, and interoperable blockchain infrastructure remains high as more enterprises seek to integrate crypto technology into their existing systems. This includes layers for interoperability between chains, secure custody solutions, and robust governance models that meet regulatory expectations. Projects that deliver reliable performance under high-throughput conditions, with strong security guarantees and minimized latency, will be well-positioned to attract both VC funding and enterprise partnerships.
Cross-border finance represents another critical opportunity area. Stablecoins and tokenized real assets can deliver faster settlement, lower costs, and improved accessibility for cross-border transactions. This has the potential to transform remittances, trade finance, and cross-border banking by providing programmable money and transparent settlement rails. Venture capital interest in cross-border financial solutions is likely to rise as institutions search for ways to streamline international transactions, reduce counterparty risk, and improve compliance with anti-money laundering standards and know-your-customer requirements.
In practice, several subthemes are expected to drive investment in this area:
- AI-assisted risk management and anomaly detection on-chain, enabling proactive safeguards against fraud and operational risk.
- Smart contract templates and audit-ready templates that simplify compliance for a wide range of asset classes.
- Scalable, modular blockchain architectures that can accommodate growth in transaction volume, asset tokenization, and DeFi activity.
- Cross-border liquidity solutions that bridge crypto markets with traditional financial centers, enabling seamless asset transfers and settlement.
- Data transparency and on-chain provenance to support regulatory reporting and investor due diligence.
The confluence of AI, real-world asset tokenization, and robust infrastructure could create a virtuous cycle: AI enhances decision-making and risk controls; tokenization expands liquidity and accessibility; and infrastructure enables scalable, compliant, and interoperable platforms. For venture capitalists, this combination offers a compelling investment thesis with multiple streams of potential revenue, including transaction fees, custody and settlement services, data analytics, and value-added services around tokenized assets.
Within this broader framework, founders should consider the following guidance to capitalize on 2025 opportunities:
- Integrate AI capabilities that improve user experience, security, and operational efficiency.
- Focus on modular, interoperable infrastructure that can scale with asset tokenization and DeFi adoption.
- Emphasize regulatory readiness, including KYC/AML checks, governance standards, and auditable data trails.
- Show clear customer traction and the ability to deliver measurable outcomes for institutional clients and everyday users.
- Develop cross-border capabilities to unlock global liquidity and diversified investor bases.
Regional and market dynamics: emerging markets, developed markets, and global growth
The 2025 crypto investment landscape is likely to feature a more nuanced regional distribution, with both emerging markets and established economies presenting distinct opportunities and challenges. In emerging markets, the appeal of stablecoins and tokenized real assets often stems from the need for more efficient payment rails, lower transaction costs, and access to cross-border capital. These markets can benefit significantly from digital asset innovations that facilitate remittances, micro-investments, and digital banking services where traditional infrastructure is lacking or expensive. The deployment of crypto infrastructure in these regions is typically linked to improving financial inclusion, accelerating economic activity, and enabling more resilient financial ecosystems.
Developed markets, on the other hand, tend to emphasize regulatory clarity, investor protection, and the integration of crypto products within traditional financial systems. In these environments, institutions seek regulated, compliant, and scalable solutions that can be embedded into existing financial workflows. Venture capital in developed markets will likely favor platforms with strong governance, rigorous risk management, and the ability to deliver institutional-grade services—such as secure custody, compliant lending, and regulated token issuance. The mix of demand drivers in mature markets complements the growth dynamics in emerging ones, creating a balanced, global growth trajectory for the crypto sector in 2025.
From a macro perspective, regional differences influence the pace of adoption and the shape of fundraising rounds. Regions with favorable regulatory positioning and stable macro conditions may see faster deal flow and larger rounds, while areas grappling with policy uncertainty or macro volatility could experience more cautious investments and longer time-to-market for product deployments. This underscores the importance of a diversified geographic strategy for both startups and investors, allowing participants to capitalize on regional strengths while mitigating localized risks.
Geopolitical factors, cross-border capital flows, and exchange rate dynamics will continue to shape the risk-reward calculus for crypto investments. Political developments, central bank policy trajectories, and global trade conditions can all impact the appetite for risk assets, including digital assets and tokenized instruments. In this context, investors will evaluate projects not only on technology and product-market fit but also on their ability to operate under different regulatory regimes and to deliver solutions that comply with diverse legal frameworks. The most successful ventures will demonstrate resilience, adaptability, and the capacity to scale across multiple jurisdictions while maintaining high standards for governance and risk management.
As the market evolves, nuanced strategies will emerge:
- Regional hubs for crypto innovation may develop where policy environments are conducive to experimentation, with sandbox approaches that allow for testing new products in controlled settings.
- Cross-border collaboration will be essential for scaling liquidity pools, enabling seamless asset transfers, and consolidating regulatory compliance across geographies.
- Localized product design that accounts for currency volatility, payment preferences, and specific consumer needs will help ensure deeper market penetration in diverse regions.
- Partnerships with financial institutions, fintechs, and public-sector entities can accelerate the deployment of tokenized finance and digital asset infrastructure.
In summary, 2025 is poised to be a year of broad regional activity, with both emerging markets and developed economies contributing to the growth of the crypto ecosystem. The combined momentum from these diverse regions can create a more resilient, interconnected market that fosters innovation, expands access to financial services, and broadens the base of participants in crypto and blockchain-enabled finance.
Risks, policy, and macro headwinds shaping crypto funding
Even as the crypto funding landscape shows positive momentum, macro and policy risks remain pivotal in determining the pace and scale of venture capital activity in 2025. Geopolitical tensions, fiscal deficits, and macroeconomic volatility can all influence investor risk appetite and the timetable for capital deployment. Regulators around the world are continuing to refine frameworks for crypto activities, with a focus on consumer protection, market integrity, and systemic risk mitigation. The clarity and predictability of these frameworks will be critical for attracting institutional capital, which seeks a stable operating environment and well-defined compliance requirements.
One of the central challenges for the industry is ensuring that regulatory development does not stifle innovation. In many jurisdictions, regulators are balancing the need to curb fraud and protect investors with the desire to enable legitimate financial innovation. The success of this balance will influence the willingness of corporate treasuries, asset managers, and family offices to participate in crypto markets. Projects that align with regulatory expectations and demonstrate transparent governance, robust risk controls, and clear reporting mechanisms will be better positioned to secure long-term funding.
Market volatility remains an inherent feature of crypto markets. While macro tailwinds can support investment activity, downside shocks—whether triggered by geopolitical events, shifts in monetary policy, or unexpected market stress—can quickly alter the risk-reward calculus for venture capital. Fund managers are likely to place greater emphasis on risk mitigation, hedging strategies, and scenario planning to ensure portfolio resilience in varying market conditions. This risk-aware stance can influence the pace of funding rounds, with deeper due diligence, longer lead times for term sheets, and more rigorous financial modeling becoming standard practice.
Regulatory regimes also influence product design and business models. For example, the deployment of stablecoins, the tokenization of assets, and the operation of on-chain liquidity markets all require clear compliance pathways. Companies that can articulate how their products meet KYC/AML requirements, custody standards, and governance obligations will improve their credibility with investors. In addition, anti-fraud measures, code audits, and formal governance processes can enhance trust and reduce operational risk, which is a critical consideration for VC and institutional investors.
From a strategic perspective, founders and executives should prioritize:
- Regulatory compliance as a core design principle, not an afterthought.
- Transparent governance and auditable on-chain data to enable investor due diligence.
- Strong risk management frameworks, including cybersecurity, fraud prevention, and incident response planning.
- Clear monetization strategies and credible paths to profitability that can withstand market cycles.
- Clear alignment between product-market fit and regulatory requirements to maintain long-term adaptability.
Investors will also monitor macro indicators and policy signals, such as inflation trends, currency stability, and policy shifts in major economies. These indicators help determine the broader environment for risk appetite and liquidity provision. The 2025 funding landscape will be shaped not only by innovation and market demand but also by the ability of the ecosystem to navigate regulatory expectations and macro uncertainties while delivering measurable, real-world value.
Practical implications for founders and investors
- Build with a compliance-first mindset, integrating regulatory considerations into product design, go-to-market strategies, and business operations.
- Demonstrate tangible user adoption and revenue generation to attract institutional capital.
- Invest in security, custody, and governance to establish trust and resilience in capital-intensive deployments.
- Craft cross-border strategies that leverage regional strengths while accommodating regulatory differences.
- Prioritize interoperability and modular architectures that can scale with evolving technology and asset classes.
The conclusion: concluding outlook for 2025 and beyond
Deng Chao’s assessment underscores a cautiously optimistic outlook for crypto funding in 2025, anchored by macro tailwinds, regulatory clarity, and a strong focus on practical use cases such as stablecoins and RWA tokenization. The potential for increased venture capital inflows hinges on the sector’s ability to deliver real-world value, robust risk management, and scalable, compliant solutions that align with the broader financial system. While macro risks remain, a disciplined investment approach that emphasizes governance, compliance, and measurable outcomes could unlock substantial growth in 2025, with a broad range of opportunities across stablecoins, real-world assets, AI-enabled infrastructure, and cross-border financial solutions.
Conclusion
The crypto venture capital landscape in 2025 is poised to benefit from a confluence of favorable macro conditions, regulatory clarity, and a maturing market that increasingly prioritizes real-world utility. Stablecoins, RWA tokenization, and high-potential infrastructure and AI-enabled platforms are expected to receive the lion’s share of attention and capital. Founders who deliver compliant, scalable, revenue-generating products with clear paths to liquidity will be well-positioned to attract institutional capital and sustain growth through 2025 and beyond. At the same time, stakeholders should remain mindful of macro risks, geopolitical tensions, and policy uncertainties that can influence market sentiment and investment pacing. By prioritizing risk-conscious, regulation-aligned strategies and maintaining a focus on tangible value creation, the crypto ecosystem can advance toward broader adoption and deeper integration with traditional finance.
