Fidelity Digital Assets released its latest report and with it a bullish forecast for the crypto market, with some game-changers that might take place in 2025. 

The report notes three important trends likely to influence the digital asset landscape: nation-state Bitcoin adoption, crypto becoming mainstream via structured digital asset products, and tokenization is a “killer application.”

Nation-state Bitcoin adoption to gain momentum

The report throws light on how more countries, like Bhutan and El Salvador, may be able to add more Bitcoin (BTC) to their national strategic reserves. According to Fidelity research analyst Matt Hogan, inflation, currency depreciation, and fiscal deficits create such geopolitical and economic pressures that nation-states are really pondering whether they can use BTC as a strategic hedge. He said, “It is likely that nation-states would begin accumulating in secret.” 

Such a geopolitical act could spark a domino reaction, with competing banks and sovereign wealth funds trying to position BTC as an equally compelling reserve asset. Fidelity warns that not adopting BTC might pose implications for greater risk to countries than accepting the very same in an increasingly volatile global economy.

Tokenization—the “killer application” of 2025

Tokenization is the paradigm shift that would be a game-changer, as Fidelity stated that the on-chain value of tokenized assets would increase two-fold, from $14 billion in 2024 to $30 billion in 2025. It extends beyond cryptocurrencies and encompasses a wide range of assets, including car titles, intellectual property, and financial instruments such as treasuries and equities. As an example of how blockchain technology can make these traditional processes run smoothly, Fidelity refers to California’s recent

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Author: Anushka Basu