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 move to tokenize car titles on the Avalanche blockchain.

Tokenization was, of course, being dubbed as a key force behind the efficiency, liquidity, and accessibility of financial systems, paving the way for further growth in adoption. This was further supported by Ivan Soto-Wright, CEO of MoonPay, who had said that stablecoins are the “killer use case” for crypto. This transformation is aided by stablecoins, as they serve as a stable medium of exchange within the tokenized ecosystem. 

Digital asset products will see a rise

The report further states that with the launch of several structured digital asset products in 2024, from spot Bitcoin and Ethereum ETFs. In 2025, actively managed funds, custom digital asset portfolios, and more options on BTC ETFs might enter the market. This would drive interest in crypto products. These financial structures can add a serious institutional-grade offering to crypto and attract more interest from institutional and retail investors alike.

Fidelity thinks that 2025 will be a big year for digital assets to become serious strategic financial tools. This is the year when the “chasm” of mainstream adoption could be crossed.