Matthew Le Merle: 2025 will be a pivotal year for blockchain, US regulatory changes are reshaping the crypto landscape, and billions of digital wallets expected by 2026

2025 could reshape the crypto landscape as traditional finance embraces blockchain technology

Key takeaways

2025 is anticipated to be a pivotal year for blockchain and crypto, marking significant industry shifts.
Hundreds of millions are adopting blockchain technologies, highlighting a surge in user engagement.
The US has reasserted itself as a leader in the crypto space due to favorable regulatory changes.
Traditional finance is increasingly shifting towards blockchain and digital assets.
By 2026, significant advancements in tokenization and market structure clarity are expected.
The entry of traditional finance into blockchain presents both opportunities and challenges.
The equity markets for crypto are experiencing a resurgence after a prolonged drought.
The regulatory environment heavily influences infrastructure development in the crypto space.
Digital wallets are expected to see massive growth, with billions of new wallets projected by 2026.
Financial activity is converging on blockchains, driven by tokenization and stablecoins.
The entire US financial system could transition to tokenization within a few years.
The convergence of blockchain, AI, IoT, and decentralization is expected to drive major technological breakthroughs.

Guest intro

Matthew Le Merle is Managing Partner and CEO of Blockchain Coinvestors, a venture capital firm that has invested in over 40 pure-play blockchain venture capital funds and a combined portfolio of 1,500+ blockchain companies including 80+ unicorns. He previously managed Keiretsu, a prominent early-stage venture investor backing more than 300 companies annually. He is also Managing Partner of Fifth Era, which specializes in investment strategies focused on AI and blockchain.

The future of blockchain and crypto in 2025

— Matthew Le Merle
Hundreds of millions are adopting blockchain technologies, indicating a significant adoption rate.
— Matthew Le Merle
The industry is at an inflection point, suggesting a critical moment in its evolution.
— Matthew Le Merle
Infrastructure investments from 2018 to 2024 have made blockchain technology more accessible.
— Matthew Le Merle
The regulatory landscape in the US is expected to continue evolving positively.
— Matthew Le Merle
The US has regained its position as the center of the crypto blockchain universe.
— Matthew Le Merle

The impact of regulatory changes on the crypto industry

The US has regained its position as a leader in the crypto space due to recent regulatory changes.
— Matthew Le Merle
Increased regulatory clarity has accelerated the institutionalization of crypto.
— Matthew Le Merle
The regulatory landscape for blockchain in the US is expected to continue evolving positively.
— Matthew Le Merle
The regulatory environment heavily influences infrastructure development in the crypto space.
— Matthew Le Merle
The regulatory landscape for crypto is currently in a gray area, but stablecoins have a clear legal definition.
— Matthew Le Merle
The market structure bill is crucial for the future of the crypto industry.
— Matthew Le Merle

Traditional finance and its shift towards blockchain

Traditional finance is undergoing a significant shift towards blockchain and digital assets.
— Matthew Le Merle
The entry of traditional players into the blockchain space is a double-edged sword.
— Matthew Le Merle
Traditional finance will need to acquire capabilities rather than build them in-house.
— Matthew Le Merle
Traditional financial firms may face obsolescence if they do not adapt to changing market dynamics.
— Matthew Le Merle
If traditional finance companies do not adapt by 2026, they risk becoming sellers rather than buyers.
— Matthew Le Merle

The rise of digital wallets and their future

By 2026, we expect a significant increase in the number of digital wallets, with potentially 2 to 3 billion new wallets opened.
— Matthew Le Merle
The steep increase in digital wallet openings is driven by the growing availability of diverse products and services.
— Matthew Le Merle
By 2026, digital wallets will evolve to offer a broad range of financial products, resembling platforms like Alipay or WePay.
— Matthew Le Merle
The companies that will succeed in the digital wallet space will be those offering the easiest and most accessible product offerings at the lowest cost.
— Matthew Le Merle

The convergence of financial activities on blockchains

Financial activity is converging on blockchains, driven by tokenization and stablecoins.
— Matthew Le Merle
Traditional fintech firms will increasingly integrate crypto products into their offerings.
— Matthew Le Merle
The abstraction of blockchain technology will allow users to engage with crypto without realizing it.
— Matthew Le Merle
The entire US financial system could shift to tokenization within a few years.
— Matthew Le Merle

The cyclical nature of capital markets and their impact

The IPO window is cyclical and may close in 2026, impacting blockchain companies going public.
— Matthew Le Merle
The capital markets may close down in 2026, impacting the availability of funding.
— Matthew Le Merle
There is a risk that capital can suddenly become less interested in the crypto sector, leading to valuation declines.
— Matthew Le Merle
The scarcity of high-quality digital exchanges and blockchain custody companies will drive up their prices as demand increases.
— Matthew Le Merle

The role of innovation and consumer demand in driving change

The biggest breakthroughs in technology will come from the convergence of blockchain, AI, IoT, and decentralization.
— Matthew Le Merle
Blockchain entrepreneurs are evolving into software engineers who integrate multiple advanced technologies.
— Matthew Le Merle
Governments do not drive innovation; rather, consumer demand for products and services is the primary catalyst for change.
— Matthew Le Merle
The demographic shift towards digital natives is significant and will influence the demand for innovative financial products.
— Matthew Le Merle

The importance of regulatory clarity for the crypto industry’s future

The rulemaking from the SEC is likely to create a stable framework for the security token market.
— Matthew Le Merle
Regulatory uncertainty is acceptable as the demand from users will prevent the industry from being shut down.
— Matthew Le Merle
The market structure bill is crucial for the future of the crypto industry.
— Matthew Le Merle
The regulatory landscape heavily influences the infrastructure development in the crypto space.
— Matthew Le Merle

The potential risks and opportunities for traditional financial firms

Traditional financial firms may face obsolescence if they do not adapt to the changing market dynamics.
— Matthew Le Merle
If traditional finance companies do not adapt by 2026, they risk becoming sellers rather than buyers.
— Matthew Le Merle
Traditional finance will need to acquire capabilities rather than build them in-house.
— Matthew Le Merle
There is a significant amount of capital that needs to be deployed towards technology in the crypto industry.
— Matthew Le Merle

2025 could reshape the crypto landscape as traditional finance embraces blockchain technology

Key takeaways

2025 is anticipated to be a pivotal year for blockchain and crypto, marking significant industry shifts.
Hundreds of millions are adopting blockchain technologies, highlighting a surge in user engagement.
The US has reasserted itself as a leader in the crypto space due to favorable regulatory changes.
Traditional finance is increasingly shifting towards blockchain and digital assets.
By 2026, significant advancements in tokenization and market structure clarity are expected.
The entry of traditional finance into blockchain presents both opportunities and challenges.
The equity markets for crypto are experiencing a resurgence after a prolonged drought.
The regulatory environment heavily influences infrastructure development in the crypto space.
Digital wallets are expected to see massive growth, with billions of new wallets projected by 2026.
Financial activity is converging on blockchains, driven by tokenization and stablecoins.
The entire US financial system could transition to tokenization within a few years.
The convergence of blockchain, AI, IoT, and decentralization is expected to drive major technological breakthroughs.

Guest intro

The future of blockchain and crypto in 2025

— Matthew Le Merle
Hundreds of millions are adopting blockchain technologies, indicating a significant adoption rate.
— Matthew Le Merle
The industry is at an inflection point, suggesting a critical moment in its evolution.
— Matthew Le Merle
Infrastructure investments from 2018 to 2024 have made blockchain technology more accessible.
— Matthew Le Merle
The regulatory landscape in the US is expected to continue evolving positively.
— Matthew Le Merle
The US has regained its position as the center of the crypto blockchain universe.
— Matthew Le Merle

The impact of regulatory changes on the crypto industry

The US has regained its position as a leader in the crypto space due to recent regulatory changes.
— Matthew Le Merle
Increased regulatory clarity has accelerated the institutionalization of crypto.
— Matthew Le Merle
The regulatory landscape for blockchain in the US is expected to continue evolving positively.
— Matthew Le Merle
The regulatory environment heavily influences infrastructure development in the crypto space.
— Matthew Le Merle
The regulatory landscape for crypto is currently in a gray area, but stablecoins have a clear legal definition.
— Matthew Le Merle
The market structure bill is crucial for the future of the crypto industry.
— Matthew Le Merle

Traditional finance and its shift towards blockchain

Traditional finance is undergoing a significant shift towards blockchain and digital assets.
— Matthew Le Merle
The entry of traditional players into the blockchain space is a double-edged sword.
— Matthew Le Merle
Traditional finance will need to acquire capabilities rather than build them in-house.
— Matthew Le Merle
Traditional financial firms may face obsolescence if they do not adapt to changing market dynamics.
— Matthew Le Merle
If traditional finance companies do not adapt by 2026, they risk becoming sellers rather than buyers.
— Matthew Le Merle

The rise of digital wallets and their future

By 2026, we expect a significant increase in the number of digital wallets, with potentially 2 to 3 billion new wallets opened.
— Matthew Le Merle
The steep increase in digital wallet openings is driven by the growing availability of diverse products and services.
— Matthew Le Merle
By 2026, digital wallets will evolve to offer a broad range of financial products, resembling platforms like Alipay or WePay.
— Matthew Le Merle
The companies that will succeed in the digital wallet space will be those offering the easiest and most accessible product offerings at the lowest cost.
— Matthew Le Merle

The convergence of financial activities on blockchains

Financial activity is converging on blockchains, driven by tokenization and stablecoins.
— Matthew Le Merle
Traditional fintech firms will increasingly integrate crypto products into their offerings.
— Matthew Le Merle
The abstraction of blockchain technology will allow users to engage with crypto without realizing it.
— Matthew Le Merle
The entire US financial system could shift to tokenization within a few years.
— Matthew Le Merle

The cyclical nature of capital markets and their impact

The IPO window is cyclical and may close in 2026, impacting blockchain companies going public.
— Matthew Le Merle
The capital markets may close down in 2026, impacting the availability of funding.
— Matthew Le Merle
There is a risk that capital can suddenly become less interested in the crypto sector, leading to valuation declines.
— Matthew Le Merle
The scarcity of high-quality digital exchanges and blockchain custody companies will drive up their prices as demand increases.
— Matthew Le Merle

The role of innovation and consumer demand in driving change

The biggest breakthroughs in technology will come from the convergence of blockchain, AI, IoT, and decentralization.
— Matthew Le Merle
Blockchain entrepreneurs are evolving into software engineers who integrate multiple advanced technologies.
— Matthew Le Merle
Governments do not drive innovation; rather, consumer demand for products and services is the primary catalyst for change.
— Matthew Le Merle
The demographic shift towards digital natives is significant and will influence the demand for innovative financial products.
— Matthew Le Merle

The importance of regulatory clarity for the crypto industry’s future

The rulemaking from the SEC is likely to create a stable framework for the security token market.
— Matthew Le Merle
Regulatory uncertainty is acceptable as the demand from users will prevent the industry from being shut down.
— Matthew Le Merle
The market structure bill is crucial for the future of the crypto industry.
— Matthew Le Merle
The regulatory landscape heavily influences the infrastructure development in the crypto space.
— Matthew Le Merle

The potential risks and opportunities for traditional financial firms

Traditional financial firms may face obsolescence if they do not adapt to the changing market dynamics.
— Matthew Le Merle
If traditional finance companies do not adapt by 2026, they risk becoming sellers rather than buyers.
— Matthew Le Merle
Traditional finance will need to acquire capabilities rather than build them in-house.
— Matthew Le Merle
There is a significant amount of capital that needs to be deployed towards technology in the crypto industry.
— Matthew Le Merle

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Source: https://cryptobriefing.com/matthew-le-merle-2025-will-be-a-pivotal-year-for-blockchain-us-regulatory-changes-are-reshaping-the-crypto-landscape-and-billions-of-digital-wallets-expected-by-2026-on-the-brink-with-castle-isla/