Future of Crypto Banks: Predictions and Trends

The crypto banking market is moving fast forward, with the industry expected to be evaluated at $2.5 billion by 2029. Compared to the present-day market size of around $1.4 billion, the expected growth tempos are immense. Thus, 2024 seems to be the right time to engage in crypto bank development as a top-performing business niche.

Are you willing to embrace the popularity of the crypto banking niche in your business activities? Here is a list of emerging trends that require serious consideration. Include them in your project development roadmap to ensure your products are relevant and interesting to the target audience of crypto enthusiasts in 2024 and beyond.

Key Emerging Trends

Here are a couple of massive trends that will shape the crypto banking market this year and in the near future.

• RWA tokenization. RWAs, or real-world assets, are increasingly tokenized in the crypto banking sphere. These assets include stocks and securities, treasury bills, real estate, etc. — anything of value that benefits from division into fungible assets and circulation in the crypto space.
• NFT lending and borrowing. The NFT trading boom is far from over, as this technology has many exciting use cases in a variety of industries. A recent innovation is NFT lending and borrowing, which allows NFT owners to provide NFTs as collateral for borrowed stablecoins.
• DeFi penetration. Decentralized finance is appealing to many categories of users for numerous reasons, so DeFi apps and solutions are gaining momentum. This trend is exceptionally strong in countries with immature financial systems, such as Africa.
• Massive adoption. With many institutional players already announcing their engagement in crypto and the recent launch of crypto ETFs on the conventional stock market, massive institutional adoption of stablecoins is expected in the coming years, if not months.
• Regulatory improvements. The scale of crypto use worldwide can’t help but worry governments and security agencies. Thus, the pace of regulatory tightening and control over crypto assets is expected to accelerate.
• AI/ML penetration. Artificial intelligence, machine learning, and neural networks are set to determine the future of crypto banking as they streamline and automate operations, enable accurate analytics, and give users immense predictive power.

Evolving Role of Crypto Banks in the Financial Sector

With the deepening penetration of cryptocurrencies into the traditional financial industry, the world is poised to see further transformations caused by crypto, such as:

• Banks will continue to expand their cryptocurrency service offerings to satisfy the growing interest of their customers.
• CBDCs will be developed and launched in many states, allowing national currency digitalization.
• DeFi and FinTech will become the new tech-savvy standard of digital operations with finance.
• Cryptocurrencies will remain a pressing security and regulation concern for traditional banks until the moment of robust regulatory framework creation.

The Time to Act Is Now

Want to be better prepared for the future of crypto banking? Welcome to our extensive crypto bank research that summarizes the key highlights of 2023 and gives a list of insightful predictions for the coming years. Don’t react to trends — anticipate and monetize them!