As we step into 2025, the world is on the cusp of a significant shift in various industries, including cryptocurrency and traditional markets. According to Hunter Horsley, CEO of Bitwise, this year may witness a boom in smaller, niche businesses aided by AI and tokenization, increased corporate adoption of Bitcoin, and an ‘unfreezing’ of mergers and acquisitions that could have a positive impact on the crypto space.
Tokenization: The Real Revolutionary Potential
In one of his recent posts on X (formerly Twitter), Horsley made some predictions about tokenization. He argued that while the focus has been on demand-side benefits, such as democratizing access to money market funds, the real transformative power lies on the supply side. Tokenization’s potential may come from enabling a vast untapped supply of smaller businesses to access capital markets.
The Rise of Real-World Asset (RWA) Tokenization
According to Edwin Mata, founder and CEO of Brickken, the RWA tokenization industry may be the next key narrative in the crypto space in 2025. He noted that real-world asset tokenization is transforming traditional markets by enabling assets like real estate, debt, and equity to be digitized and traded on the blockchain.
AI: The Catalyst for a New Era of Business
Horsley believes that AI may lead to an explosion of companies and tokenized companies. He thinks that AI could massively increase the number of niche businesses, which could never go public but could tokenize. This could be a major new long-tail capital market.
An Example of How AI Can Boost Tokenization
As Horsley explained, AI can boost tokenization by increasing efficiency and reducing costs associated with traditional methods of fundraising. This enables smaller businesses to access capital markets more easily, leading to an explosion of micro companies.
Benefits of Tokenization
- Democratizing Access: Tokenization enables a vast untapped supply of smaller businesses to access capital markets.
- Increased Efficiency: AI can increase efficiency and reduce costs associated with traditional methods of fundraising.
- New Long-Tail Capital Market: Tokenization could create a new long-tail capital market for niche businesses.
The Arrival of ‘Bitcoin Standard Corporations’
Horsley also predicted that 2025 will see the arrival of ‘Bitcoin Standard Corporations,’ companies that hold BTC on their balance sheets. These corporations will join the likes of MicroStrategy, which has hinted at another purchase and is the largest corporate holder of BTC.
Benefits of Bitcoin Standard Corporations
- Increased Adoption: The arrival of Bitcoin Standard Corporations will increase adoption and recognition of cryptocurrency as a legitimate asset class.
- Reduced Risk: By holding BTC on their balance sheets, corporations can reduce risk associated with traditional assets.
- New Opportunities: The rise of Bitcoin Standard Corporations will create new opportunities for investors and businesses.
The ‘Unfreezing’ of Mergers and Acquisitions
Horsley believes that the forthcoming Trump administration in the US may ‘unfreeze’ mergers and acquisitions for large corporations, which is good for crypto. This could lead to an increase in corporate adoption of cryptocurrency as a legitimate asset class.
Benefits of Unfrozen M&A
- Increased Adoption: The unfreezing of M&A will increase adoption and recognition of cryptocurrency as a legitimate asset class.
- New Opportunities: The rise of Bitcoin Standard Corporations and the unfreezing of M&A will create new opportunities for investors and businesses.
Conclusion
2025 is shaping up to be a transformative year for crypto and traditional markets. With the rise of tokenization, AI, and corporate adoption of Bitcoin, we can expect significant changes in various industries. As we step into this new era, it’s essential to stay informed and adapt to these changes to reap their benefits.
