What five major changes will the relationship between Wall Street and BTC undergo in 2025?

Author: Ledn CEO Mauricio Di Bartolomeo, CoinDesk; Compiler: Bai Shui, Golden Finance

When Michael Saylor announced in August 2020 that MicroStrategy would convert $250 million of its financial reserves into Bitcoin, Wall Street analysts thought it was a reckless gamble. Saylor’s claim at the time that Bitcoin was “better than cash” sparked skepticism in the traditional banking community.

Today, however, the same banks that scoffed at corporate adoption of Bitcoin are now rushing to participate in Bitcoin-collateralized lending as they race to capitalize on Bitcoin’s superior properties and burgeoning product-market fit as institutional-grade collateral.

Traditional collateral, such as real estate, requires manual appraisals, subjective assessments, and complex legal frameworks that vary by jurisdiction. In contrast, Bitcoin offers instant verification of collateral backed by public blockchain data, 24/7 real-time settlement and clearing capabilities, uniform quality regardless of geography or counterparty, and the ability to programmatically enforce loan terms .

When lenders realize they can instantly verify and potentially liquidate Bitcoin collateral at 3 a.m. on a Sunday morning — while real estate awaits manual appraisals, subjective valuations, and potential evictions — there will be no loopback.

1. Traditional banking surrenders to Bitcoin.

MicroStrategy's (MSTR) approach fundamentally changes the way public companies view Bitcoin as a financial asset. Rather than simply holding Bitcoin, the company pioneered a financial model that used public markets to expand its cryptocurrency position—issuing convertible notes and shares on the market to fund Bitcoin purchases. This strategy allows MicroStrategy to leverage the same financial engineering that made traditional banks great, but with Bitcoin as the underlying asset rather than traditional financial instruments and real estate, allowing MicroStrategy to significantly outperform spot Bitcoin ETFs.

Therefore, one of my predictions for 2025 is that MSTR will announce a 10-for-1 stock split to further expand its market share, as this will allow more investors to purchase shares and options contracts. MicroStrategy’s actions demonstrate how deeply Bitcoin has penetrated traditional corporate financing.

I also believe that financial services built around Bitcoin will explode in popularity as long-term holders and new investors look to get more out of their positions. We expect rapid growth in Bitcoin mortgage lending and income-generating products for Bitcoin holders worldwide.

Furthermore, there is an almost poetic answer to why Bitcoin-backed loans have become so popular – they are a true representation of financial inclusion, and business owners in Medellín face the same collateral requirements and interest rates as in Madrid. Everyone’s Bitcoins have the same properties, verification standards, and liquidation process. This standardization eliminates the arbitrary risk premiums historically imposed on emerging market borrowers.

For decades, traditional banks have marketed “global reach” while maintaining wildly different lending standards in different regions. Now, Bitcoin-backed lending exposes this inherited inefficiency for what it is: a relic of an outdated financial system.

2. As capital flows freely, borders disappear.

Countries are entering a new era of Bitcoin business and capital competition. As a result, we expect to see new tax incentives specifically targeted at Bitcoin investors and businesses in 2025. These incentives will be implemented alongside a fast-track visa program for cryptocurrency entrepreneurs and a regulatory framework aimed at attracting Bitcoin companies.

Historically, countries have competed for manufacturing bases or regional headquarters. They now compete for Bitcoin mining operations, trading venues, and custody infrastructure.

El Salvador’s Bitcoin vault status represents an early experiment in nation- state Bitcoin reserves. Although experimental, their moves, along with the recent proposal for a U.S. Bitcoin strategic reserve, force traditional financial centers to reckon with Bitcoin’s role in sovereign finance.

Other countries will study and try to replicate these frameworks, preparing their own initiatives to attract capital flows denominated in Bitcoin.

3. Open doors for banking players.

In debt markets, necessity drives innovation. Publicly traded companies now frequently tap the bond market and convertible notes to fund Bitcoin-related transactions. This approach has transformed Bitcoin from a speculative asset into a cornerstone of corporate financial management.

Companies such as Marathon Digital Holdings and Semler Scientific have successfully followed MicroStrategy's lead and reaped the rewards of the market. This is the most important signal for financial managers and CEOs. Bitcoin now has their attention.

Meanwhile, the Bitcoin lending market has come a long way over the past two years. Serious institutional lenders now require proper collateral segregation, transparent escrow arrangements and conservative loan-to-value ratios. This standardization of risk management practices attracts precisely the institutional capital that had previously been set aside.

Regulation becomes clearer. The door should be opened for more banks to participate in Bitcoin financial products - this will benefit consumers the most, with new capital and competition driving down interest rates and making Bitcoin-backed loans more attractive.

4. Bitcoin and cryptocurrency mergers and acquisitions intensify.

As regulatory clarity emerges from the SAB 121 resolution covering cryptocurrency custody and other guidance, banks will face a critical choice: build or buy their way into the growing Bitcoin and lending markets. Therefore, we predict that at least one of the top 20 US banks will acquire a crypto business next year.

Banks want to move fast, cryptocurrency infrastructure development timelines are beyond competitive windows, and established companies already handle billions in monthly transaction volume with tried and tested systems.

These operating platforms represent years of professional development that banks cannot replicate quickly. The acquisition premium shrinks relative to the opportunity cost of delaying market entry.

The combination of operational maturity, regulatory clarity and strategic necessity creates the natural conditions for the banking industry to acquire cryptocurrency capabilities.

5. Public market validation of Bitcoin infrastructure.

The cryptocurrency industry is poised to have a breakout year in the public markets. We expect at least one high-profile cryptocurrency IPO in the United States with a valuation of over $10 billion . Major digital asset firms have built sophisticated institutional services layers with revenue streams now identical to those of traditional banks, processing billions of dollars in daily transactions, managing large custodial operations through stringent compliance frameworks, and transitioning from regulated Generate stable fee income from activities.

As a result, the next chapter in finance will be written not by those who resist this change, but by those who recognize that their survival depends on embracing it.