A compelling forecast is taking shape for 2025, as leading crypto investors and policymakers align around a more favorable risk environment, with venture capitalists showing renewed interest in crypto projects. HashKey Capital’s Deng Chao argues that stablecoins, real-world asset tokenization, artificial intelligence, and foundational infrastructure will be among the most attractive focal points for venture funding next year. He points to a 2024 backdrop of higher digital asset valuations and the potential political-economic tailwinds from U.S. policy shifts as catalysts that could draw more capital into crypto ventures in 2025. Yet even with optimism, he stresses that macro risks—ranging from geopolitical frictions to higher deficits—could inject volatility and uncertainty into prices and investment sentiment. The industry is watching closely how public policy, market dynamics, and technological advancements converge, shaping a landscape where capital, compliance, and consumer value intersect in new ways.
Market Outlook for 2025: VC Activity in Crypto and Macro Tailwinds
Deng Chao’s perspective centers on a notable transition in venture capital flow: from cautious positioning to active deployment as digital assets enter a more mature phase of valuation and regulatory clarity. In 2024, the sector experienced a broad re-pricing of risk assets, with several crypto projects reporting higher valuations relative to the previous year. This re-rating has the practical effect of expanding the appetite among venture capital funds, corporate venture arms, and family offices that seek to diversify portfolios and capture multi-year upside in a maturing market. The 2025 horizon, according to Chao, is likely to see a deeper penetration of capital into ecosystems that offer tangible use cases and scalable revenue models.
A central argument rests on macroeconomic tailwinds emanating from stimulative policies in the United States and the formalization of crypto regulatory frameworks. When policymakers provide greater clarity and predictability around compliance requirements, institutional investors gain confidence to allocate longer-term capital to crypto projects. The trend is reinforced by a broader recognition that digital assets and their underlying technologies can support enhanced efficiency in financial services, cross-border settlements, and real-time data processing. In this framework, venture capital becomes less about speculative bets and more about strategic investment in infrastructure, applications, and networks that can deliver measurable benefits to participants across the value chain.
Chao emphasizes that the macro environment is a pivotal determinant of capital inflows. He notes that supportive policy measures, coupled with a clear regulatory stance, can help reduce perceived risk and unlock new funding channels. The result could be a more dynamic funding cycle in 2025, with larger rounds, longer investment horizons, and more collaborative models that combine venture funds, operating partners, and strategic backers. However, it is essential to balance this optimism with a sober recognition of ongoing geopolitical tensions, potential shifts in deficit spending, and policy changes that could temporarily affect market sentiment or liquidity.
From a sector perspective, the mix of opportunities being eyed by VCs includes stablecoins, RWAs (real-world assets), AI-enabling platforms, and foundational infrastructure that supports scalable and compliant networked finance. Each category presents distinct risk-return profiles and developmental milestones. Stablecoins are viewed as the most proven use case for crypto in 2024, with venture investors increasingly prioritizing their application in emerging markets where local currencies are volatile or capital controls are stringent. RWAs, including tokenized forms of government securities, corporate bonds, and other asset classes, offer a bridge between traditional finance and decentralized networks, enabling new modes of value capture and liquidity provisioning. AI integration is expected to accelerate product development, risk management, and automated compliance, adding a layer of sophistication to crypto offerings that was previously unattainable at scale.
The longer-term question for 2025 is how quickly and effectively these investments translate into durable business models and real-world adoption. Analysts expect that a subset of crypto-focused ventures will scale to meaningful revenue streams, while others may remain as early-stage pilots or niche platforms that require additional capital to reach profitability. The dynamic nature of crypto markets means investors will also assess governance structures, data integrity, security protocols, and interoperability across networks. In parallel, the sector will continue to witness shifts in funding strategies, including co-investment syndicates, strategic partnerships with financial institutions, and initiatives centered on regulatory technology (RegTech) and compliance automation. The overall trajectory suggests a more robust VC ecosystem for crypto in 2025, provided the macro backdrop remains supportive and investors navigate risk with a balanced, evidence-driven approach.
Looking at the historical arc, 2023 and 2024 established a baseline for venture funding in crypto projects, which is now informing expectations for 2025. The pattern shows that funding volumes have fluctuated in line with broader market cycles, but the underlying interest in blockchain-enabled solutions, asset tokenization, and digital payment innovations has endured. This resilience underscores a broader narrative: crypto is maturing from a speculative domain into a domain where institutional capital can play a meaningful and strategic role. As venture capitalists reassess risk, they increasingly demand clarity on token economics, regulatory compliance, and the real-world utility of the platforms they back. This is not merely about backing novel ideas; it is about supporting ecosystems that can scale, deliver governance that protects users, and integrate with traditional financial systems in ways that are transparent and auditable.
In summary, the 2025 market outlook posits a greater flow of venture capital into crypto projects, anchored by macro tailwinds, regulatory clarity, and a growing appetite for infrastructure, stablecoins, and real-world asset tokenization. While the optimism is tempered by obvious macro risks, the converging factors create a fertile ground for ambitious ventures that can demonstrate repeatable value, solid risk controls, and scalable business models. Investors will continue to balance the potential upside with the need for discipline, governance, and measurable outcomes, setting the stage for a more sophisticated and resilient crypto investment landscape in the year ahead.
Stablecoins: The Strongest Proven Use Case and Emerging Market Adoption
Across the crypto landscape, stablecoins are repeatedly cited as the most proven and practical use case that has emerged, particularly in 2024, and this trend is anticipated to extend into 2025. The core appeal of dollar-pegged stablecoins lies in their ability to provide price stability, low friction, and broad accessibility, which are critical for everyday digital transactions, cross-border remittances, and as a gateway to broader crypto ecosystems. This is especially impactful in emerging market economies where local fiat currencies face rapid depreciation or are subject to stringent capital controls, creating compelling macroeconomic incentives to use stablecoins as a store of value and a medium of exchange.
In practical terms, stablecoins function as immune system components for users and businesses operating in volatile environments. They offer near-instant finality, which makes them suitable for micropayments, remittances, payroll, and price precision in decentralized applications. The technology behind stablecoins—whether fiat-backed, crypto-backed, or algorithmic—has evolved to deliver greater efficiency and security, including improved settlement speeds, lower transaction costs, and scalable liquidity. The security and reliability of stablecoins become even more crucial when they serve as a bridge to traditional financial services, particularly for populations that lack access to robust banking networks.
The World Bank data indicates that approximately 1.4 billion people worldwide lack access to adequate banking services. This gap is largely attributable to insufficient infrastructure in many developing countries, compounded by the digital divide and limited financial inclusion. The positive implication for crypto is that smartphones with internet access and crypto wallets can unlock pathways to financial participation for billions of individuals who were previously excluded from formal banking. In this context, stablecoins can act as an on-ramp to broader financial products and services, enabling savings, lending, and seamless payments for underserved communities. The implication for investors is that stablecoins create a scalable, globally accessible use case that can drive transaction volumes, liquidity, and network effects across multiple jurisdictions.
From a capital allocation perspective, stablecoins also unlock opportunities for banks and non-bank financial institutions to participate in crypto ecosystems without taking on the volatility risk associated with other digital assets. They can serve as a stable settlement layer, facilitate cross-border trades, and provide a dependable unit of account within DeFi protocols and tokenized platforms. Moreover, the emergence of stablecoins in emerging markets can catalyze the development of local crypto ecosystems by enabling new business models, such as stablecoin-denominated lending and insurance, that align with the needs of small and medium-sized enterprises as well as individual consumers. The eventual expansion of stablecoin services in these regions can spur regulatory attention focused on compliance, consumer protection, and financial stability, prompting a careful balance between innovation and oversight.
In the face of ongoing discussions about central bank digital currencies (CBDCs) and broader digital finance initiatives, stablecoins occupy a unique space as a practical, permissionless, and programmable form of digital money. They offer a pathway for users to access crypto economies without facing the volatility inherent to unpegged assets, while enabling developers to build scalable decentralized applications that require stable value anchors. The adoption trajectory of stablecoins in emerging markets is likely to be influenced by factors such as liquidity depth, issuer credibility, on-chain compliance frameworks, and interoperability with local fiat rails. For venture capitalists and project founders, the stablecoin story remains compelling because it merges real-world usability with scalable technology, creating demand-side and supply-side dynamics that can sustain long-term growth and resilience in crypto ecosystems.
Looking ahead to 2025, the consensus among many market watchers is that stablecoins will remain the cornerstone of crypto adoption in jurisdictions facing currency volatility and capital restrictions, while continuing to evolve in terms of security, governance, and user experience. The path forward involves enhancing transparency around reserve management, improving custody and risk controls, and expanding access points so more users can participate in stablecoin ecosystems confidently. As the market matures, there will likely be greater emphasis on interoperability, cross-chain liquidity, and regulatory alignment to ensure that stablecoins support broad-based financial inclusion while maintaining financial integrity across borders. The result is a multi-faceted growth opportunity for developers, investors, and policy-makers who see stability and inclusivity as enabling forces for innovation in digital finance.
Real-World Asset Tokenization: Scaling Assets onto Blockchain
Real-world asset (RWA) tokenization represents a landmark shift in the way traditional financial instruments—such as government securities, stocks, corporate bonds, and even collectibles—can be represented on blockchain ledgers. This approach is expanding the boundaries of what counts as an investable asset by enabling fractional ownership, improved liquidity, and streamlined settlement processes. The RWA sector, including stablecoins and other tokenized assets, is projected to reach a remarkable scale, with estimates suggesting a total value of up to $30 trillion by 2030 when all asset classes are tokenized and integrated into blockchain ecosystems. This projection signals a potential reconfiguration of financial markets as tokenized representations of real-world assets circulate on digital rails, unlocking new ways to access, trade, and manage value.
The intrinsic value proposition of RWA tokenization lies in its ability to bring real assets onto programmable networks, allowing for automated compliance, fractional ownership, and transparent governance. Tokenization can democratize access to high-value assets that historically required substantial minimum investments, enabling broader participation from investors who previously faced barriers to entry. In this framework, tokenized assets can be traded with greater speed and certainty, reducing settlement risk and enhancing price discovery through on-chain activity. Moreover, tokenization can unlock new liquidity pools, as fractional ownership opens up demand from a wider audience and enables continuous trading regardless of market cycles. The resulting liquidity can, in turn, lower capital costs for issuers and create more resilient funding channels for ongoing corporate activities and public financing.
From a market perspective, the growth of the RWAs sector hinges on several critical factors. These include regulatory clarity regarding tokenized asset classes, robust risk management and governance frameworks for token issuers, and the development of standardized contractual models that ensure legal enforceability across borders. Infrastructure considerations are equally important: trusted custody solutions, secure token standards, reliable settlement layers, and interoperable market data feeds will determine the pace and reliability of RWA markets. As investors gain comfort with tokenized versions of traditional assets, demand dynamics could shift toward platforms that offer scalable liquidity, transparent pricing, and strong reporting capabilities.
Emerging markets stand to benefit significantly from RWAs, as tokenization can unlock access to a broader set of capital sources and enable cross-border investment opportunities previously constrained by regulatory and operational frictions. For example, tokenized government securities could facilitate more inclusive access to sovereign debt markets, while corporate bonds tokenized on a blockchain can streamline issuance and trading processes for issuers and investors alike. The integration of stablecoins, tokenized assets, and DeFi-enabled protocols can create a composite ecosystem in which value flows more efficiently and where financial inclusion is expanded through transparent, programmable instruments. The long-term implications for financial systems include enhanced capital formation, more granular risk management, and the potential for innovative public-private collaboration in the design and oversight of tokenized markets.
As with any transformative trend, RWAs carry inherent risks that investors must carefully manage. Legal uncertainties across jurisdictions, varying degrees of regulatory compliance, and the possibility of mispricing or liquidity mismatches can present challenges. Market participants will need to prioritize robust due diligence, rigorous governance structures, and transparent disclosure to minimize these risks. In practice, successful RWA initiatives will combine strong on-chain data integrity with credible off-chain legal and regulatory alignment, ensuring that tokenized assets deliver genuine value to holders and issuers alike. The coming years could see a rising tide of RWAs that push the boundaries of what is possible in asset tokenization, unlocking new avenues for diversification, liquidity, and financial resilience on a global scale.
The VC Landscape: 2023–2025 Trends and Projections
The venture capital (VC) landscape for crypto and blockchain projects has demonstrated notable volatility but also persistent underlying momentum. In 2024, crypto-focused companies raised approximately $13.6 billion across various rounds, a figure that reflects ongoing investor appetite despite macro uncertainties. This compares with roughly $10.1 billion raised in 2023, signaling a recovery of investment activity and a renewed confidence among fund managers that crypto projects can deliver long-term value. Market observers have highlighted a trajectory toward bigger rounds, more sophisticated investment theses, and a greater emphasis on governance, transparency, and risk management.
Looking ahead to 2025, projections from market data platforms indicate continued growth in VC investments in crypto projects, with estimates suggesting that funding could rise to around $18 billion. This forecast implies a notable acceleration relative to 2024 and reflects the belief that the sector is moving beyond early-stage experimentation toward more mature, scalable ventures. Analysts caution, however, that the range of outcomes remains wide, and the ultimate level of investment will depend on macroeconomic conditions, regulatory clarity, and the ability of projects to demonstrate sustainable business models and real-world impact.
A complementary assessment from market researchers suggests that 2025 could see a 50% year-over-year increase in crypto VC activity, although it may still fall short of the peaks observed during the 2021–2022 bull market. The divergence between capital inflows and peak market valuations underscores the complexity of crypto markets, where exuberance and caution can coexist as investors seek to balance innovation with prudent risk management. In this context, the most robust investment theses are likely to revolve around sectors with clear use cases, such as stablecoins, RWAs, AI-enabled platforms, and critical infrastructure that supports scalable, secure, and compliant blockchain ecosystems.
Strategic themes for venture investors in 2025 include the following:
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Emphasizing risk governance and due diligence: As the sector matures, investors increasingly demand rigorous risk controls, governance structures, and transparent reporting to manage volatility and regulatory risk.
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Focusing on real-world utility: Startups that demonstrate tangible value through stablecoin-enabled payments, cross-border settlement, RWA tokenization, or improved capital efficiency are more likely to attract capital.
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Building interoperable ecosystems: Projects that can operate across multiple networks and comply with cross-border regulatory regimes are better positioned to capture liquidity and network effects.
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Integrating AI and data-driven capabilities: AI-enabled analytics, risk management, and automation can differentiate platforms and accelerate product-market fit, driving efficiency and scale.
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Prioritizing inclusion and access: Ventures that address financial inclusion, particularly in emerging markets, can unlock sizeable demand pools and align with policy objectives around inclusive finance.
These themes align with the broader narrative that crypto is evolving from a niche technology into a critical component of modern financial systems, with venture capital playing a pivotal role in shaping the direction of innovation, governance, and global reach.
Infrastructure and AI: The Intersection of Crypto and Advanced Technologies
Artificial intelligence (AI) and robust infrastructure are increasingly intertwined with the crypto ecosystem, enabling more secure, scalable, and user-friendly platforms. AI can support a range of functions from predictive analytics and automated risk assessment to adaptive governance and enhanced security protocols. In infrastructure terms, the focus is on building scalable, interoperable networks that can accommodate higher transaction throughput, lower latency, and stronger resilience against cyber threats. The synergy between AI and crypto infrastructure is likely to yield platforms that can operate with greater efficiency, optimize capital allocation, and deliver customized user experiences across diverse markets.
Chao’s remarks underscore the role of AI as a strategic asset within crypto ecosystems. AI has the potential to transform multiple layers of the value chain—from decision-making processes inside token issuers and asset managers to the risk management frameworks used by investors and regulators. For venture-backed projects, AI integration can accelerate product development cycles, improve customer insights, and enhance the quality of service through real-time data analysis and automation. This convergence is especially meaningful as RWAs and stablecoins scale, creating demand for sophisticated analytics, compliance tooling, and automated reporting to meet regulatory standards and investor expectations.
From a technical perspective, the evolution of crypto infrastructure includes enhancing security guarantees, such as safer custody solutions, improved key management, and robust vulnerability testing. It also involves refining on-chain data integrity, ensuring reliable price feeds, and achieving greater cross-chain interoperability through standardized token interfaces and protocol-level governance. These improvements are essential for attracting institutional capital, which demands high levels of transparency, auditable controls, and consistent performance. In practice, the convergence of AI and infrastructure can produce more resilient platforms capable of delivering stable, predictable outcomes for users and investors alike, especially as RWAs and stablecoins continue to expand their footprint in both developed and developing markets.
The strategic takeaway for builders and investors is clear: invest in capabilities that combine intelligent data processing with scalable, secure architecture. Projects that deliver end-to-end solutions—covering issuance, custody, settlement, compliance, and analytics—stand to gain an enduring competitive advantage. The AI-infrastructure synergy can also help reduce friction in onboarding, KYC/AML processes, and risk screening, further enabling broader adoption across regulated environments. In the long run, the integration of AI and robust crypto infrastructure can create a virtuous cycle of innovation, where data-driven insights inform better product design, governance, and policy compliance, supporting sustainable growth for the entire ecosystem.
Regulatory Clarity and Policy Tailwinds: Navigating the Legal Landscape
Policy clarity and regulatory developments are central to shaping the trajectory of crypto funding and adoption. Democratic and orderly frameworks provide a stable operating environment that reduces uncertainty and encourages long-horizon investment. The formalization of crypto regulatory frameworks—through clear guidelines on custody, disclosure, governance, and consumer protection—can unlock participation from institutional investors who require high standards of compliance and risk management. At the same time, it is essential that regulatory regimes foster innovation and do not stifle entrepreneurship or the growth of open, permissionless networks.
In the current environment, macro policy tailwinds include stimulative measures in the United States that can indirectly support crypto markets by improving liquidity, reducing financing costs, and enabling the deployment of digital financial products that enhance efficiency and resilience. However, the risk of policy shifts, geopolitical tensions, or fiscal policy changes remains a counterweight. Investors will be watching how policy risk evolves, including potential changes in tax treatment, securities classifications, anti-money-laundering (AML) rules, and the treatment of stablecoins and tokenized assets. The balance between innovation and oversight will be critical, as overly restrictive rules could dampen growth, while too lenient frameworks could create volatility or financial stability concerns.
One important dynamic to consider is how policy clarity can influence 2025 funding activity. A well-defined regulatory environment can facilitate more predictable fundraising timelines, more transparent disclosures, and clearer pathways for product approvals or market access. Conversely, ambiguous or inconsistent regulatory signals can slow investment, increase compliance costs, and drive capital toward jurisdictions with clearer rules or more favorable risk-reward dynamics. This is particularly relevant for RWAs, where cross-border settlement and securitization models intersect with traditional financial regulation. The success of RWAs and stablecoins in the coming years will depend to a large extent on the capacity of policymakers to establish coherent frameworks that protect investors and consumers while supporting innovation and financial inclusion.
Regulatory developments also have implications for consumer trust and market integrity. As more ordinary users engage with crypto services, regulators are likely to impose stronger consumer protection measures, disclosure standards, and security requirements. While this can elevate the credibility of the ecosystem and attract more mainstream participants, it can also impose compliance costs and slow growth if not implemented thoughtfully. Stakeholders will benefit from ongoing collaboration among regulators, industry participants, and users to design policies that align incentives, reinforce risk controls, and promote durable value creation in crypto markets.
In practice, the path to regulatory certainty involves a combination of global coordination and local specificity. The emergence of common principles for disclosures, reserve requirements for stablecoins, and standardized reporting can help harmonize cross-border operations and reduce fragmentation. At the same time, jurisdiction-specific considerations—such as tax regimes, securities classifications, and privacy protections—will shape where capital flows and where projects choose to base their operations. Investors and companies that adopt proactive compliance strategies, invest in robust governance, and pursue transparent interactions with regulators will likely be better positioned to capitalize on the opportunities in 2025 and beyond.
Emerging Markets and Financial Inclusion: The Role of Crypto
The case for crypto in emerging markets rests on the potential to extend access to financial services, create new avenues for capital formation, and improve the efficiency of payments and settlements. The combination of stablecoins, RWAs, and scalable crypto infrastructure can help bridge gaps in traditional financial systems and enable broader participation in the global economy. In markets with high inflation, volatile currencies, or stringent capital controls, stablecoins can offer a more stable store of value and a reliable medium of exchange. RWAs can democratize access to asset classes that historically required large minimum investments and complex intermediaries. In addition, the use of on-chain finance can reduce friction, improve transparency, and enable real-time settlement, which collectively strengthens financial resilience and inclusion.
The smartphone revolution and widespread internet connectivity are pivotal enablers of this transformation. In regions where traditional banking channels are underdeveloped or unreliable, crypto wallets and mobile payments can provide a practical alternative, giving individuals and small businesses a gateway to global markets. The World Bank’s data on the unbanked illustrate the scale of the opportunity: billions of people stand to gain from financial tools that were once out of reach. By leveraging stablecoins and tokenized assets, emerging markets can participate in capital markets, access credit, and engage in cross-border trade with less dependence on traditional, sometimes opaque, financial intermediaries. This shift can democratize wealth creation and distribution while offering new channels for local innovation and entrepreneurship.
Investors, policymakers, and entrepreneurs should pay particular attention to inclusivity and capacity-building in these regions. Successful implementations require not only technology but strong governance, consumer protection, and education to ensure that users understand the risks and benefits of on-chain financial instruments. Financial literacy and digital literacy will be essential components of wide-scale adoption, as will the establishment of trusted custody solutions, secure wallets, and reliable customer support. The collaboration between fintech startups, financial institutions, and regulators can foster responsible growth that aligns incentives for users, issuers, and investors alike.
As RWAs and stablecoins scale in emerging markets, cross-border collaborations will become more common. Local projects can partner with international platforms to access liquidity, expertise, and risk management capabilities, while regulators increasingly look to align standards to promote stable and safe growth. The long-term payoff for emerging markets is substantial: more efficient capital formation, improved access to financing, and stronger participation in global value chains. For investors, this context offers not only diversification benefits but also the opportunity to back ventures that address pressing developmental needs with innovative financial technology.
Risks, Market Volatility, and Risk Management in a Pivoting Landscape
Even as the crypto fundraising environment improves, investors and project teams must contend with persistent risks and the potential for volatility. Macroeconomic shocks, geopolitical tensions, regulatory shifts, and cybersecurity threats can all influence sentiment and outcomes. Chao’s cautious reminder about macro risks underscores a fundamental principle of prudent investing: diversification, rigorous risk controls, and robust governance must accompany any expansion of capital into crypto ventures. This approach helps to cushion against abrupt price swings and protect value across cycles.
Key risk dimensions to monitor include:
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Market volatility: Crypto assets can experience rapid price movements driven by liquidity dynamics, sentiment shifts, and systemic risks. Risk management strategies—such as hedging, position sizing, and dynamic portfolio construction—are essential to mitigate downside exposure.
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Regulatory uncertainty: The pace and direction of regulatory changes can affect product viability and market access. Ongoing engagement with policymakers, transparent disclosure, and compliance automation are critical for maintaining investor confidence.
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Operational risk: Security breaches, custody vulnerabilities, and governance failures pose threats to platforms and participants. Strong security protocols, independent audits, and resilient incident response plans help reduce these risks.
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Counterparty risk: Dependence on third-party service providers, including custodians, liquidity providers, and infrastructure operators, introduces exposures that require careful selection, monitoring, and contingency planning.
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Liquidity risk: In markets with limited depth, even small shocks can disproportionately affect prices. Ensuring liquidity through diversified counterparties, robust market-making, and transparent reporting improves resilience.
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Reputational risk: Public perception can be highly sensitive to incidents or perceived misalignment with consumer protection standards. Maintaining high standards of conduct, clear communication, and proactive issue resolution is essential for sustaining trust.
To navigate these risks, market participants should emphasize rigorous due diligence, scenario analysis, and stress testing. They should also invest in governance mechanisms that align incentives, foster accountability, and promote long-term value creation. For startups, building scalable, compliant, and secure platforms that can weather diverse environments will be a differentiator in a crowded field. For investors, applying disciplined frameworks, integrating risk analytics, and maintaining disciplined capital allocation will be key to achieving sustainable returns in a market characterized by rapid innovation and evolving norms.
Strategic Implications for Founders and Investors
The convergence of stablecoins, RWAs, AI-enabled platforms, and robust crypto infrastructure creates a multi-dimensional landscape for startups and venture capitalists. For founders, the 2025 environment presents both opportunities and responsibilities. The opportunity lies in building solutions that address real-world needs—such as providing accessible financial services in emerging markets, enabling efficient cross-border payments, and deploying tokenized assets that unlock liquidity. The responsibility centers on establishing credible governance, robust risk controls, and transparent disclosure that will sustain investor confidence and user trust. Founders must also prioritize regulatory readiness, data integrity, and security to avoid costly setbacks and to attract strategic partnerships with financial institutions and regulators.
For investors, the path forward involves refining investment theses to emphasize real-world impact and measurable outcomes. This includes scrutinizing token economics, reserve management, compliance frameworks, and governance mechanisms. Investors should favor teams that demonstrate a deep understanding of the regulatory landscape and show practical traction, such as partnerships with traditional financial entities, real-world asset issuances, or user growth metrics that indicate durable value creation. A diversified approach that blends exposure to stablecoins, RWAs, AI-enabled solutions, and infrastructure will likely yield a balanced risk-reward profile, particularly if coupled with active governance involvement and strategic partnerships that accelerate scale.
The role of technology in enabling these investments cannot be overstated. AI can support more accurate risk assessment, predictive analytics, and operational automation, while infrastructure improvements can lower barriers to entry and scale capacity. As the ecosystem evolves, investors will also weigh the willingness of platforms to share data responsibly, uphold privacy standards, and adopt interoperable standards that facilitate cross-network collaboration. These factors collectively influence the long-term viability of crypto ventures, the quality of user experience, and the capacity to deliver value to a broad, global audience.
Education and transparency will be crucial for sustainable growth. As more people participate in crypto ecosystems, they must understand the risks, benefits, and protections available. Clear communication about product features, token utility, and settlement mechanics helps users make informed decisions and fosters informed participation. Investors and founders alike should invest in user education, robust customer support, and clear policy disclosures to ensure that the ecosystem remains accessible and trustworthy.
Overall, the 2025 outlook presented by Deng Chao highlights a period of opportunity tempered by caution. The sector is positioned to attract more venture capital as macro conditions improve and regulatory clarity rises, with stablecoins and RWAs at the center of this growth. By combining strategic capital deployment with disciplined risk management, the crypto industry can advance toward a more mature, resilient, and inclusive financial future. The road ahead will require collaboration among industry participants, policymakers, and end users to realize the transformative potential of tokenization, digital money, and AI-enabled financial services.
Conclusion
In summary, the year 2025 is anticipated to mark a meaningful inflection point for venture capital in the crypto space, driven by a convergence of macro tailwinds, regulatory clarity, and a demonstrated appetite for practical use cases. Stablecoins emerge as the strongest proven use case for crypto in 2024, with continued emphasis on their role in emerging markets where currency volatility and capital controls persist. Real-world asset tokenization is poised to scale dramatically, potentially reaching trillions of dollars in value by 2030, as governments, corporations, and financial institutions explore tokenized representations of securities, bonds, and other assets on blockchain platforms. Venture capital investments in crypto projects are expected to rise in 2025, with projections indicating significant growth relative to 2024, even as markets may not fully reclaim the peaks seen in earlier cycles. The integration of AI and advanced infrastructure will further accelerate innovation, governance, and compliance across the ecosystem, helping to deliver scalable solutions that can operate within or across regulatory boundaries.
The insights from HashKey Capital’s Deng Chao underscore a nuanced and forward-looking view: a crypto landscape characterized by increased capital inflows, diversified use cases, and a more sophisticated investment approach. While macro risks remain a factor to monitor, the combination of stability, real-world asset connectivity, and tech-enabled efficiency offers a compelling blueprint for investors, founders, and policymakers aiming to shape a more resilient and inclusive digital financial system. The next year will test these dynamics, but the trajectory suggests a marketplace where capital, technology, and governance align to unlock sustained growth and meaningful value for participants across the globe.
