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a16z: Institutional Adoption and Stablecoins Are Defining Crypto’s 2025 Boom
- a16z’s 2025 report highlights stability, institutional scale, and technological progress defining crypto’s next growth stage.
- Stablecoins processed US$46T (AU$70.5T) in a year, while BlackRock and Morgan Stanley deepen their crypto offerings.
- Advances in blockchain speed, tokenisation, and AI integration mark crypto’s evolution into an open financial system.
Andreessen Horowitz (a16z) says the crypto sector has entered a new phase defined by stability, scale, and institutional credibility. In its State of Crypto 2025 report, the firm outlines how traditional financial institutions, faster blockchains, and a surge in stablecoin activity are driving the asset class toward mainstream acceptance.
The report highlights that major financial and payment institutions — including BlackRock, Citi, Visa, PayPal, and Morgan Stanley — are expanding their presence in digital assets. Morgan Stanley plans to introduce crypto trading on E*TRADE in early 2025, reflecting rising institutional engagement.
Meanwhile, ETFs for Bitcoin and Ethereum now hold more than US$175 billion (AU$268 billion) in combined assets, underscoring their growing appeal as portfolio staples. This momentum has been reinforced by clearer U.S. regulatory efforts that give firms a defined framework to develop and launch crypto products.
Stablecoins have become a cornerstone of the ecosystem, processing US$46 trillion (AU$70.5 trillion) in the past year – an annual volume comparable to major banking networks and triple that of Visa. Adjusted for non-organic activity, this figure totals US$9 trillion (AU$13.8 trillion), demonstrating real-world use beyond trading.
Their total supply has reached US$300 billion (AU$460 billion), and more than 1% of all US dollars now exist as tokenised stablecoins. Collectively, these assets hold over US$150 billion (AU$230 billion) in US Treasuries, outpacing some national reserves.
Related: Kevin Durant Reveals Early Bitcoin Bet After a16z Party Sparked Investment
Next-Gen Blockchain Performance
Technological advances underpin these shifts. Blockchain throughput now exceeds 3,400 transactions per second – a hundred-fold increase in five years – with Solana and Ethereum leading development. Zero-knowledge proofs and other privacy-enhancing tools are advancing toward mainstream integration, while quantum-safe cryptography is on the horizon.
Beyond infrastructure, the tokenisation of real-world assets like Treasuries and commodities has reached US$30 billion (AU$46 billion), and the interplay between crypto and AI continues to deepen. For a16z, these milestones signal crypto’s graduation from a speculative market into a durable foundation for a new, open financial system.
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Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
