A seismic shift in token regulation, use cases, and institutional adoption has collided with financial orthodoxy, threatening to reshape global systems and expose new systemic risks.

At a Glance

• Key legislation defines stablecoins and allows broader private issuance
• Tokenised real‑world assets gain traction among brokers and investors
• Bitcoin and crypto market cap surged beyond US $4 trillion
• Regulatory clarity accelerates institutional capital inflows
• Experts warn rising use of stablecoins may jeopardise financial stability

Finance Disrupted

The Economist’s recent analysis highlights a regulatory turning point on July 23, 2025: new legal frameworks formally define stablecoins, expand private issuers, and validate tokenized real‑world assets, creating what commentators call a true “Big Bang” moment for digital finance.

In parallel, Bitcoin recently surged over 33% year‑to‑date and helped push total crypto market capitalisation to above US $4 trillion, signalling renewed confidence from institutional investors.

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Staunch skeptics are now reconsidering: The Economist acknowledges that once-dismissed stablecoin utility is proving “useful” in lowering transaction friction for asset managers and corporates globally.

Promise Versus Peril

Legal clarity may unlock mainstream adoption—but with it comes growing risk. While tokenisation enables programmable money and instantaneous settlements, critics warn that stablecoin ubiquity could destabilise core monetary frameworks and undermine central bank tools.

Tokenised assets—real‑world securities and liabilities represented as blockchain tokens—are attracting brokers and institutional buyers. However, experts highlight that widespread issuance without oversight might inflame liquidity mismatches and investor exposure.

Does It Amplify Inequality?

Meanwhile, debate intensifies over whether decentralized currencies like Bitcoin challenge existing currency hegemony, or amplify inequality due to speculative bubbles and algorithmic money supply limits.

The current surge in Bitcoin’s price and total market cap suggests speculative momentum, but also raises alarms about concentration, leverage, and investor protection gaps.