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If we had to select the most important crypto-related event of the past year, a majority could point to the successful re-election offer of Donald Trump, which caused an increase in Bitcoin and most other major tokens.
Others may indicate the Halving of Bitcoin in April or the launch of more than 10 spot Bitcoin ETFs after their approval by the SEC early 2024.
Less flashy, but equally important developments as a substantial growth of the acceptance of stablecoins Strengthen the foundation of the industry.
This adoption also helped facilitate a robust Defi eco system (decentralized finance) and at the same time improved connectivity with Tradfi (traditional finances).
With crypto who retains his momentum in 2025, it will need more than just an extensive adoption from Stablecoin to feed the Defi-Tradfi cooperation.
Defi’s progress paves the way for TradeFi
Although many are eagerly waiting for Trump’s plan for a presumably crypto-friendly regulatory framework, it is clear that the industry has built up the late momentum of 2023, it continues to expand and introduce new technologies.
This shows resilience, regardless of power administration.
Various headlines and developments shared attention in the busy year, pointing to a productive industry that is in the right direction.
Numerous important progress pushes the industry ahead, from the fascinating new AI (artificial intelligence) applications to the explosion of Tokenized RWAS (Real -World assets).
Even Memecoins and NFTs (non-fungal tokens) had their moments in 2024, which further demonstrated the stability of a one-off sector.
Despite all this and Bitcoin, the $ 100,000 surpassed, Crypto remains a volatile asset class that is largely disconnected from Tradfi institutions, which ultimately limits its full potential.
That said, the momentum of crypto and Defi’s performance offer a great opportunity to accelerate Tradfi’s involvement in 2025.
Defi’s clearly advanced maturation and growth stand out. It continued to push the boundaries of blockchain by expanding ecosystem -wide integrations and at the same time innovating financial tools for a growing user base.
Among the highlights of Defi were claims in the use of liquids, repetition and RWA -Tokenization Developments that only start to scratch the surface of his enormous potential.
There is no reason to believe that its innovation will delay or that the interest in Defi has reached a peak.
And because retail and institutional investors are looking for ways to get exposure to looking up digital assets and dealing with Defi systems, TradeFi will no longer be able to stay away.
It is a well -known fact that Tradfi has long wanted to play a more important role within Crypto.
However, considerations of the regulations and privacy have limited participation to private blockchain pilots and peripheral involvement in Defi.
So, what will 2025 make the year of Tradfi, plays a more active role in crypto?
Coordinate Trade and Defi interests
Again, assumptions about the potential positive impact of Trump’s crypto regulations positive impact or how this will influence the participation of Tradfi within Defi cannot be made.
Instead, hope can be found in the growing trend of Defi protocols that choose to regulate yourself through the implementation of KYC (Know-Your-Customer) and AML (anti-money laundering) processes.
This self-regulating trend will probably continue in 2025, making Defi safer for both retail and institutional investors.
This will further increase the confidence of investors and encourage participation, stimulating Tradfi to play a greater role.
The growing acceptance of Defi of these basic regulatory measures shows the maturity and insight into that the guarantees of customers will lead to broader acceptance.
This would be possible thanks to increased institutional cooperation and acceptance of trandfi processes that can streamline this process.
The financial landscape changes before our eyes. Neobanks are expanding their influence by offering customers technology -driven solutions to improve the user experience.
Institutions have invested heavily in investigating blockchain -Uuse cases and have devoted important means to develop their own initiatives aimed at providing digital assets services, while increasing their balance sheets.
All this indicates a centuries old financial system that undergoes rapid infrastructure changes.
In the end, both TradeFi and Defi realize that this changing landscape has room for two competing financial models to co -exist.
Crypto has shown its lasting power, while for most people Tradfi remains a necessary gateway to economic activity.
In 2025 this recognition will continue to manifest as these financial systems get closer.
As the Defi-Ecosystem evolves, from trade and strike platforms to offering a wide range of services and tools, the sector will continue to offer a driveway for one-off illiquid assets.
The enormous resources and expertise of Tradfi in the provision of financial aids and services can, on the other hand, strengthen the progress of Defi.
This would mean that we will see the convergence of these two sectors that reach new heights when crossing their routes.
With the infrastructure, increasing investor’s interest and optimism about the clarity of the regulations, the table is set for meaningful cooperation options in areas such as self-herb, Real-WORLD tokenization and other joint ventures.
Crypto is reflected from an ice-cold winter with which the industry could be repeatedly and concentrate on innovation and rwas instead of superficial hype-driven trends.
The threatening collision between Tradfi and Defi has been in the making for years But in 2025, it is expected that it will be replaced by meaningful collaborations that lead to real progress.
By working together, these two ecosystems can create a lake including and efficiently worldwide financial landscape.
Roy Mayer is the founder and CEO of VixichainA low-one blockchain that solve the restraint of Tradefi to communicate with public blockchains. As an avid entrepreneur in the blockchain and crypto space, Roy has more than ten years of experience in leading successful projects in the banking and payment sector. He has a proven track record of increasing capital and scale organizations from the seed to success.
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Credit : dailyhodl.com
