Today we are joined by Desiree Sainthrope, a legal expert whose extensive experience in drafting and analyzing international trade agreements gives her a unique perspective on the global regulatory landscape. With a keen interest in the intersection of law, intellectual property, and emerging technologies like AI, she provides critical insights into the structural shifts shaping the digital asset economy. We will explore the catalysts driving blockchain’s anticipated breakout year in 2025, the complex integration of traditional finance into the crypto space, and the massive potential of digital wallets. The conversation will also cover the seamless convergence of financial activities on-chain, the cyclical nature of capital markets, and the powerful combination of blockchain with other frontier technologies.
With 2025 anticipated as a breakout year for blockchain and the U.S. re-emerging as a leader due to regulatory shifts, what specific catalysts will define this change? Could you walk us through the infrastructure advancements from recent years that now make this pivotal moment possible?
We are absolutely at an inflection point. The primary catalyst is the profound shift in the U.S. regulatory stance, which has been a monumental 180-degree turn for the industry. For years, between roughly 2018 and 2024, there was immense investment in building out the foundational infrastructure of blockchain, yet a hostile or ambiguous regulatory environment suppressed its full potential. You have to ask, why would anyone build out this complex infrastructure if they felt digital assets were effectively illegal? Now, with that fog of uncertainty lifting, the U.S. has undeniably reclaimed its position as the center of the crypto universe. This newfound clarity is unleashing the power of that infrastructure, making transactions on blockchain rails not just possible, but genuinely cheap and simple for the first time.
The entry of traditional finance into blockchain is often seen as a double-edged sword. What are the primary opportunities and challenges this presents for native crypto firms, and what specific capabilities will traditional institutions need to acquire by 2026 to avoid becoming obsolete?
It’s absolutely a double-edged sword. On one hand, the institutionalization of crypto has accelerated dramatically, bringing in capital and legitimacy. On the other, you now have large, well-funded incumbents entering a space previously dominated by agile startups. The key for traditional finance is recognizing they can’t build everything they need in-house; the technology is evolving too quickly. We’re looking at 2026 as a critical year where these institutions must shift from a build-it-yourself mentality to an acquisition strategy. They need to start buying the capabilities that native crypto firms have spent years developing. If a traditional finance company hasn’t made a significant move by 2026, I believe they risk becoming a seller, not a buyer, meaning they will be made obsolete and forced to offload assets rather than strategically acquire them.
Projections suggest up to three billion new digital wallets could emerge in the next few years, evolving to resemble platforms like Alipay. What key financial products and services will drive this massive adoption, and what metrics define a successful, low-cost user experience for digital natives?
The scale of this shift is staggering; we’re anticipating two to three billion new digital wallets opening in the next three to five years. This isn’t just about holding a single asset anymore. The growth is fueled by an expanding universe of products and services becoming available within these wallets. By 2026, they will look far less like a simple crypto holder and much more like comprehensive financial platforms such as Alipay or WePay. Success in this race will be defined by a very clear set of metrics. The winners will be those who provide the easiest, most accessible, and broadest product offerings at the lowest possible cost. The new generation of digital natives is incredibly discerning; they will gravitate toward the platform that offers a seamless and affordable experience, and the genie is already out of the bottle on that front.
The convergence of financial activity on blockchains is being driven by tokenization and stablecoins. Can you provide a practical, step-by-step example of how an everyday transaction might use this technology without the consumer even realizing it, and what does this mean for traditional fintech firms?
We are in the midst of a great convergence, and it’s happening behind the scenes. Imagine you’re paying a vendor online using your Visa card. You enter your details, click “pay,” and see the confirmation. What you don’t see is that in the settlement process, Visa might use a stablecoin on a blockchain to move value between banks or across borders instantly and with finality. The entire US financial system could realistically shift to this kind of tokenized infrastructure within just a few years. For the consumer, the experience is unchanged, but the underlying rails are faster and more efficient. For traditional fintech firms, this means they must start integrating crypto-based products seamlessly into their offerings. The future is one of abstraction, where users benefit from the technology without needing to understand or even be aware of the blockchain transaction happening in the background.
You’ve noted that capital markets are cyclical and that the IPO window could close around 2026. How should blockchain companies be preparing for this potential capital drought, and what specific actions can they take now to secure their financial footing for the long term?
Capital markets are inherently cyclical; they always have been and always will be. While the equity markets for crypto are resurgent now after a long drought, there is a substantial risk that the IPO window will close again sometime in 2026. It’s a recurring pattern. This means capital can suddenly become less interested in the sector, leading to a rapid outflow and declining valuations. For blockchain companies, the time to prepare is now, while capital is available. They must secure their financial footing by raising the funds they need to weather a potential downturn. The most strategic companies are also recognizing that high-quality, scarce assets—like top-tier digital exchanges or custody providers—will command high prices as demand consolidates. It’s a game of musical chairs, and companies need to ensure they have a secure seat before the music stops.
As blockchain entrepreneurs evolve into software engineers integrating AI and IoT, what are some of the most compelling convergence use cases you are seeing? Please share a tangible example of a product or service that would be impossible without combining these distinct technologies.
The most significant breakthroughs we’ll see will come from this convergence. When we talk to founders today, they no longer identify simply as “blockchain entrepreneurs”; they are software engineers orchestrating a symphony of advanced technologies. Consider a supply chain for sensitive pharmaceuticals. IoT sensors can monitor a vaccine’s temperature in real-time. This data is written immutably to a blockchain, creating a verifiable and tamper-proof record of its journey. An AI system could then analyze this data stream to predict potential spoilage, automatically rerouting shipments or triggering insurance contracts written as smart contracts on the blockchain. This level of automated, transparent, and intelligent logistics is simply impossible without the distinct contributions of IoT for data collection, blockchain for trust and immutability, and AI for predictive analysis and decision-making.
What is your forecast for the crypto landscape in the next five years?
My forecast is one of optimistic pragmatism. The institutionalization of crypto will accelerate, driven less by government innovation—which rarely creates powerful products—and more by overwhelming consumer demand. The new generation of voters and users wants this technology, and that’s a force that is very difficult to reverse. We’ll likely continue to operate with some regulatory uncertainty, but I’m comfortable with that, as the demand will prevent any outright shutdown of the industry. I am particularly optimistic about rulemaking for security tokens, which will create a stable framework that would be difficult to roll back. The market structure bill will be crucial in defining who governs the spot market, but ultimately, the landscape will be shaped by a convergence of technologies and a financial system that increasingly runs on invisible, tokenized rails that are seamlessly integrated into our daily lives.
