Markus Infanger, Senior Vice President at RippleX, shares fintech predictions on the future of institutional DeFI and real-world asset tokenisation.
As the digital asset landscape continues to evolve and grow, a number of trends are beginning to emerge. For instance, tokenised Money Market Funds (MMFs) are projected to become the fastest-growing digital asset class, reaching USD 400 billion in the next five years. It’s clear that these financial instruments are going to see tremendous growth in 2025 - reflecting the trajectory of the stablecoin market in the last 12 months.
As institutional interest in blockchain-based financial products accelerates, with firms like abrdn and Fidelity embracing tokenised funds and corporate treasuries diversifying into multi-token strategies, these organisations seek to discover new revenue streams, hedge against inflation, and boost efficiency. Public blockchains will be increasingly used as the backbone for these innovations, providing the transparency, efficiency, and global accessibility that institutions require.
Here are some of the ways I see the digital assets industry developing in the near term, including the growth of tokenised MMFs, the widespread institutional adoption of public blockchains, and the shift toward multi-token strategies by corporate treasuries.
Tokenised Money Market Funds (MMFs) are on course for significant growth this year, matching the levels of interest we’ve seen in other digital assets, like stablecoins, in recent years. These instruments offer distinct advantages in maintaining stability during crypto market volatility and operating within established regulatory frameworks. Unlike yield-bearing stablecoins which face restrictions in major financial hubs, tokenised MMFs can be structured under existing regulatory structures, providing greater regulatory clarity and compliance.
Tokenised MMFs also maintain similar liquidity profiles through investments in diversified, high-quality, short-term debt instruments and cash equivalents. With backing from established financial institutions, these funds bring institutional-grade risk management and operational excellence to the digital asset space. So it’s no surprise that it’s an asset class ready for mass adoption.
Moreover, the CFTC's recommendation to accept tokenised MMFs as eligible collateral should further enhance their utility, enabling efficient liquidity management, collateral usage in derivatives and repo markets, and streamline operational processes. This development positions tokenised MMFs to potentially reduce counterparty risks, improve capital efficiency, and enhance yields while maintaining the liquidity advantages of traditional cash holdings.
The financial sector is witnessing a significant shift as institutions increasingly migrate financial assets to public blockchain infrastructure in response to growing market demand. This transition is driven by a number of operational advantages. The enhanced visibility and seamless cross-platform integration of blockchain technology is creating operational efficiencies and market connectivity. Additionally, the 24/7 nature of blockchain enables institutions to optimise capital deployment and manage liquidity needs with greater precision, unrestricted by time-zone limitations.
These blockchain-powered markets open new revenue streams through asset fractionalisation, which dramatically expands global market access. This capability directly addresses longstanding challenges in traditional secondary markets, including limited accessibility, settlement inefficiencies and high operational costs.
The trend is particularly evident in larger asset classes like private equity, where firms such as Aurum Equity Partners, KKR, and Hamilton Lane are leading the way with tokenised funds. This adoption is supported by the emergence of institutional-grade infrastructure and compliance tools, enabling major financial institutions to engage with public blockchains while maintaining regulatory compliance through specialised custody solutions, risk management frameworks and audit trails.
These developments signal a broader transformation in how financial institutions approach asset management and market accessibility, suggesting a future where traditional barriers to investment are significantly reduced.
Corporate treasuries will accelerate the adoption of multi-token strategies
The corporate treasury landscape is poised for a dramatic transformation, as companies increasingly diversify into digital assets, following the successful model demonstrated by early adopters such as MicroStrategy. There’re already 32 publicly traded companies which hold approximately USD 52.2 billion worth of Bitcoin in corporate treasuries, and this is set to grow substantially this year. While early adopters have tended to focus exclusively on Bitcoin, companies are now taking a broader approach, incorporating other digital assets to hedge against inflation and enhance global operational efficiency.
The recent decision by Worksport to allocate up to 10% of excess operational cash to Bitcoin and XRP exemplifies this growing trend. The company reported a projected 37% reduction in transaction costs through cryptocurrency payment adoption, highlighting the dual benefits of treasury diversification and operational efficiency.
This expansion is being driven by post US election market dynamics, mounting monetary policy pressures and improved regulatory clarity. Mid-market companies are following the lead of larger tech firms, expanding beyond Bitcoin into diversified digital asset strategies, and integrating these treasury holdings with operational payment networks.
The trend requires careful consideration of risk management frameworks, including robust governance policies, treasury stress testing and sophisticated custody solutions. Companies are increasingly implementing multi-signature wallet strategies and institutional-grade custody solutions as essential security measures for their digital asset holdings.
This strategic shift represents a fundamental change in how companies approach treasury management, combining inflation protection with enhanced operational capabilities as the financial sector continues its digital transformation.
These three trends indicate a major shift in how financial institutions will manage digital assets and access financial markets this year, with a desire for new revenue streams serving as a key driver behind the adoption of tokenisation. As institutional-grade infrastructure and compliance tools mature, major financial institutions will be encouraged to lean in with greater confidence.
At the same time, corporate treasuries diversifying into digital assets will drive further innovation in treasury management, offering more efficient and secure solutions. This will help create a more accessible, efficient and resilient financial ecosystem built on the blockchain, fundamentally reshaping the way institutions operate and engage with the global financial market.
About Markus Infanger
Markus Infanger is Senior Vice President of RippleX, overseeing Ripple’s contributions to the XRP Ledger (XRPL), a decentralised blockchain built for business applications. In his role, Markus looks after product developments, partnerships, and the growth of the developer ecosystem. With more than two decades in leading roles at financial institutions, Markus is passionate about driving the integration of traditional finance with blockchain technology.
About Ripple
Ripple is the leading provider of digital asset infrastructure for financial institutions—delivering simple, compliant, reliable software that unlocks efficiencies, reduces friction, and enhances innovation in global finance. Ripple’s solutions leverage the XRP Ledger and its native digital asset, XRP, which was purpose-built to enable fast, low-cost, highly scalable transactions across developer and financial use cases.
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