Cryptocurrency in 2025: the year in review - Luno

As 2025 draws to a close, the cryptocurrency industry can look back on a year that fundamentally redefined its relationship with traditional finance. Rather than operating in parallel to conventional markets, digital assets have begun to integrate into mainstream financial infrastructure. 

Price milestones

Bitcoin's performance throughout 2025 reflected maturation rather than speculation. The digital currency topped R2 million on Luno for the first time on 20 January - Trump's inauguration day - just 11 months after crossing the R1 million threshold. The asset continued its ascent, climbing above R2.2 million before October brought significant volatility.

The most notable correction came in early October when tariff announcements triggered a sharp decline to the current R1.47 million. Yet even this downturn revealed something important: the market's response differed markedly from previous cycles. Institutional participation has fundamentally altered volatility patterns, leverage structures, and price resilience, creating a more stable - if still dynamic- trading environment.

Institutional adoption

No development better exemplified crypto's mainstream moment than BlackRock's IBIT Bitcoin ETF becoming the third-highest-revenue-generating fund in the asset manager's portfolio of over 1 000 ETFs in less than two years. This represented more than just strong performance; it signalled that major financial institutions view cryptocurrency as a core rather than a peripheral offering.

The integration extended beyond investment products. JPMorgan, Visa, and Stripe deployed cryptocurrency technology for value transfer. Discovery Bank became the first bank in Africa to integrate crypto asset trading directly into its mobile banking application through its partnership with Luno, making digital assets accessible through familiar banking interfaces.

JSE-listed Africa Bitcoin Corporation's decision to add Bitcoin to its treasury demonstrated that institutional interest has taken root locally, not just internationally.

Regulatory progress

South Africa achieved a significant milestone in October when it was removed from the FATF grey list. Strengthened Financial Intelligence Centre powers and new beneficial ownership disclosure requirements have positioned the country favourably for the continued growth of the crypto industry within a robust compliance framework.

A May 2025 South African High Court ruling clarified that existing exchange controls exclude cryptocurrencies, prompting calls for swift regulatory updates. Classifying digital assets like Bitcoin as 'onshore' when held on licensed local platforms could unlock institutional investment, potentially generating R500 million in tax revenue while allowing ordinary savers modest crypto allocations through funds.

While the United States considers allowing Bitcoin into workplace pension plans covering over 90 million Americans, South Africa continues to debate whether collective investment funds can hold Bitcoin at all, and risks falling behind.

In the United States, 2025 marked a policy turning point. Presidential executive orders created a more accommodating regulatory framework and directed the evaluation of a national digital asset stockpile. The June passage of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) established clear guidelines for the issuance of stablecoins by banks and companies.

The SEC initiated significant policy overhauls in September, including consideration of crypto trading on national securities exchanges. New leadership signalled fundamental shifts in regulatory philosophy, with Commissioner Paul Atkins suggesting updates to laws that hamper the development of decentralised finance. 

Tokenisation trends

The line between traditional and crypto-native finance grew increasingly difficult to discern in 2025. BlackRock tokenised US bonds on Ethereum. Banks explored issuing their own stablecoins. Most significantly, Nasdaq proposed to the SEC that it be allowed to trade tokenised stocks on its exchange—potentially making one of the world's largest traditional exchanges a venue for blockchain-settled securities.

Luno introduced over 60 tokenised US stocks and ETFs in South Africa, allowing 24/7 trading without currency conversions. These blockchain-based tokens represent ownership of traditional company shares, backed by shares held in custody, with prices that track the underlying stock values in real time.

McKinsey research estimates that by 2030, between $2 trillion and $4 trillion in assets could be tokenised and traded on-chain, providing round-the-clock market access and reducing friction for everyday investors. 

Stablecoin adoption

Stablecoins, which meet the definition of a financial product under South Africa's Financial Sector Regulation Act as digital representations of fiat currency, continued gaining adoption throughout 2025. Beyond the US dollar, other fiat currencies, including the Euro and South African Rand have been tokenised, reshaping cross-border payments and remittances.

In African markets, stablecoins serve practical purposes: business payments, inflation hedging, protection against currency depreciation, and retail transfers. SWIFT has announced plans to integrate crypto rails for 24/7 cross-border transfers using tokenised value signals, a move that even traditional financial infrastructure recognises as delivering efficiency gains. 

2026 outlook

Several factors suggest continued momentum into 2026. Continued regulatory clarity and accelerating institutional adoption may test new market dynamics.

The critical variables will be global economic conditions, particularly trade relations and the evolution of monetary policy. Yet the fundamental question has shifted: the conversation is no longer whether crypto will integrate with traditional finance, but how quickly.

Additional themes emerged in 2025 that will likely shape developments in 2026. The total crypto market capitalisation crossed $4 trillion for the first time, though this remains modest compared to gold's $30 trillion or the S&P 500's $58–$62 trillion, suggesting substantial room for growth.

Decentralised AI networks emerged as potential solutions to concerns around ownership, security, and monopolisation in artificial intelligence. Projects like Helium and Bittensor demonstrated how crypto incentives can distribute workloads and build collaborative AI ecosystems.

Privacy-focused protocols have also matured, with industry discussion shifting from whether privacy belongs in crypto to how it can coexist with compliance, audits, and lawful oversight for legitimate use cases such as salary payments, business transactions, and confidential donations.

The year ahead

 The cryptocurrency industry that emerges in 2025 will look markedly different from the one that entered it. Integration with traditional finance has progressed from possibility to reality. Institutional participation has reshaped market dynamics. Regulatory frameworks are becoming more sophisticated. The use cases have expanded beyond speculation to include genuine financial infrastructure improvements.

As we move into 2026, the industry's challenge will be building on this foundation while maintaining the innovation and accessibility that made cryptocurrency compelling in the first place.

Christo de Wit, country manager, Luno

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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