As a survivor of a few crypto cycles, I’ve become almost immune to the price swings of digital assets.
I’ve farmed airdrops, hunted NFT whitelists, chased DeFi yields, and (yes) even aped into memecoins. Most of it didn’t pay off, but it gave me a crash course in the industry’s mechanics.
What I’ve learned is that crypto markets have historically been driven by liquidity cycles, starting with institutions and eventually trickling down to retail, who end up fueling rallies in higher-risk assets like crypto.
What made crypto unique is that its rise was largely retail-led. Unlike the internet or AI, which matured through institutional capital and VC funding, crypto gave individuals a financial stake in emerging technology. That’s part of what made it so exciting, and so different.
For years, institutional adoption lagged due to regulatory uncertainty and lack of internal expertise, but that’s changing.
Many crypto OGs view institutional participation as the antithesis of crypto’s ethos. However, after the collapses, frauds, and regulatory crackdowns in the past five years, it’s become clear: regulation has a role to play and so do institutions with their decades of experience managing risk and compliance.
That doesn’t mean TradFi is perfect, but merging its discipline with crypto’s innovation offers a path toward a better, more inclusive financial system.
Institutional Adoption: From Headlines to Holdings
After years of skepticism, global banks, asset managers, and corporates are now allocating, integrating, and building in the space. Quietly, institutional capital is becoming the backbone of digital asset markets.
As of May 2025, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed $70 billion in AUM, making it the fastest-growing ETF in history. Fidelity, Franklin Templeton, and others have followed with similar offerings, giving institutional investors a compliant, regulated gateway into crypto.
CME Bitcoin futures reached a record open interest of $22 billion in December 2024, highlighting growing institutional dominance in crypto derivatives. Meanwhile, Société Générale is issuing on-chain bonds on Ethereum, JPMorgan is expanding JPM Coin, and SWIFT is running tokenization trials with major banks.
Moreover, Strategy’s (formerly MicroStrategy) Bitcoin treasury model has now been replicated across many jurisdictions and expanded to other digital assets like Ethereum and XRP.
Their strategy is simple: turn an otherwise underperforming public company into a digital assets “buy and hold” investment vehicle, leveraging the deep liquidity of public capital markets.
Institutions are no longer testing, they’re building and investing. Robinhood’s acquisition of Bitstamp and WonderFi, Standard Chartered’s investment in Zodia Markets and Zodia Custody, and Fuze’s $12M Series A show that capital is pouring into platforms that serve institutions. These firms understand that the future of financial infrastructure is blockchain-based.
The logic is simple: Blockchain can make value transfer faster, cheaper, and more secure. It’s now part of the long-term digital strategy for serious institutions.
Why Regulation and MENA Matter
Crypto regulation has often felt like trying to catch water with a net. Developments surge in bull markets and vanish in bear cycles. The industry is borderless by design, so it’s easy for activity to shift jurisdiction, but frustrating for regulators and builders alike.
The U.S., long hostile to crypto, is now showing signs of policy clarity. The GENIUS Act is advancing, offering long-awaited guidance on stablecoins. Asia remains dynamic but sometimes unpredictable. Hong Kong has now adopted stablecoin legislation and is licensing VASPs. Singapore is also refining its frameworks for exchanges and bank exposure.
Europe’s MiCA regulation brings harmonization but also friction. Compliance is high, and innovation may suffer as a result, pushing many innovators outside the EU.
Then there’s MENA.
The region offers a rare combination of regulatory agility, capital readiness, and strategic direction.
Bahrain, for example, launched a sandbox in 2017 and moved to fully regulate crypto by 2019. Abu Dhabi has positioned itself as an institutional hub, drawing in players like Zodia Markets, Galaxy Digital, and Brevan Howard Digital. Dubai’s VARA continues to refine an industry-friendly regulatory model. Elsewhere, Qatar and Oman are reportedly exploring tokenization and Bitcoin mining, while Saudi Arabia has maintained a digital assets task force under SAMA for years, with regulatory progress expected soon. Jordan has introduced a blockchain policy, and Morocco’s draft crypto law is now ready for review.
MENA’s Moment
Is MENA the global crypto hub? It’s likely. The term is overused, but the momentum is real.
Bahrain is quietly pushing frontier regulation. Dubai has become a crypto capital magnet. Abu Dhabi now hosts some of the most credible institutional players in the space. MGX’s recent investment in Binance only confirms the region is serious.
However, why is MENA attracting digital asset attention? A few reasons:
- Agility: faster decision-making compared to policy gridlock in the West.
- Capital readiness: sovereign wealth funds are sitting on liquidity and looking to diversify.
- Demographics: over 50% of the GCC population is under 30 digital-native and open to new tech.
- Emerging market positioning: MENA offers the growth story of emerging markets with the added benefit of deep local capital. Think Singapore 40+ years ago, but cash-rich.
Looking Ahead: Institutions Will Set the Tone
What institutions want isn’t always what crypto dreamed of, but that’s okay. They seek regulated custody, on-chain settlement, and real-time risk controls. They’re not interested in dog coins or meme pumps; they want tokenized money markets, permissioned liquidity, and secure infrastructure.
Firms that can bridge TradFi and DeFi, like Zodia Markets and others, are building the rails for generations to come. The next era of institutional finance starts with them.
It’s tempting to believe the next bull run will be fueled by retail euphoria, but all signs point elsewhere.
The next wave is being architected in boardrooms, not on Discord servers.
