Discussions at Consensus 2025 highlighted the rapid expansion and maturation of the decentralized finance (DeFi) ecosystem. Key themes included the adoption of decentralized exchanges, increasing stablecoin usage, growing interest in real-world asset tokenization, and the rise of yield-generating protocols. Against the backdrop of a surging Bitcoin market and the progression of the GENIUS Act in the U.S. Congress, the event underscored a pivotal shift: cryptocurrencies are transitioning from niche to mainstream.
The presence of regulators, government officials, and representatives from major financial institutions and corporations further reinforced this sentiment. Notable developments, such as Coinbase's inclusion in the S&P 500, Circle’s upcoming initial public offering, and Robinhood’s acquisition of WonderFi, all point toward a new era of financial digitization.
The Digital Transformation of Finance
Speakers at Consensus unanimously agreed that innovations like tokenization and stablecoins are becoming foundational to modern financial systems. These technologies are reshaping everything from cross-border payments and bond settlements to capital market operations.
Industry leaders from companies like Ripple and Kraken emphasized that future financial systems will revolve around digital assets. They argued that for traditional banks to stay competitive, they must adopt or integrate stablecoins and other blockchain-based infrastructures.
Andy Baehr, Head of Product and Research at CoinDesk, highlighted the impressive performance of tokenized financial products:
“The success of tokenized money market funds and treasuries in the last 18 months has been phenomenal.”
During a session focused on bridging traditional finance (TradFi) and DeFi, representatives from Connexus Digital Assets and WisdomTree shared compelling metrics. Connexus has already processed over $2 trillion in tokenized volume, while WisdomTree has launched 13 tokenized products across multiple platforms.
Still, panelists acknowledged ongoing challenges related to regulatory compliance and technological interoperability. Baehr added:
“In the traditional world, whatever you tokenize, you want to be able to use it as collateral. Tokenized treasuries and money market funds enable this in ways stablecoins cannot.”
Prominent figures like Kevin O’Leary and Dean Skurka of WonderFi described stablecoins as the foundation for the next chapter in crypto, particularly following the GENIUS Act. They stressed that for digital assets to endure, they must offer real-world utility beyond mere speculation.
A session on yield-bearing stablecoins revealed that although these instruments represent only 2–3% of the $250 billion stablecoin market, they are gaining traction among institutional and retail investors.
The Role of Yield in Digital Asset Investment
Stablecoins were just one facet of a broader trend discussed at Consensus: the growing demand for yield-generating digital assets. Panelists explored how DeFi is merging with traditional financial systems to offer returns through staking, futures, and other crypto-native strategies.
According to Dave Lavalle, Global Head of ETFs at Grayscale, financial advisors are increasingly seeking ways to incorporate crypto into client portfolios:
“We’ve had 6,000 credible conversations with financial advisors this year about incorporating crypto into portfolios. It starts with Bitcoin.”
He noted that conversations are now shifting toward more advanced yield-generation strategies.
Bitget COO Vugar Usi Zade highlighted the company’s efforts to meet institutional demand:
“We are trying to give similar opportunities to big hedge funds, family offices, and institutions who want to acquire and custody digital assets on behalf of their clients.”
Bitcoin’s evolution into a yield-generating asset was another focal point. The launch of Babylon’s proof-of-stake blockchain enables Bitcoin holders to stake their BTC and earn $BABY tokens. Similarly, Grayscale and other asset managers are seeking regulatory approval to enable staking in Ethereum ETFs.
Canada has already approved staking-enabled ETFs, such as the Solana spot ETF. This move reflects a clear appetite for yield products in both U.S. and Canadian markets.
Other yield-generation methods discussed included liquidity provision in decentralized exchanges and perpetual futures trading. Panelists on the “Is Wall Street Ready for Institutional DeFi?” session viewed yield generation as a long-term growth opportunity, particularly as more assets become tokenized.
Blue Macellari, Head of Digital Assets at T. Rowe Price, offered a forward-looking perspective:
“The next level of unlock is when we really have tokenized underlying securities, because then we have both pieces moving at the speed of blockchain.”
Despite the enthusiasm, speakers also addressed the need for better risk communication and user education. Baehr pointed out:
“There is no unified benchmark for lending or borrowing rates in crypto. Clarifying what ‘yield’ means and the risks involved is a job the industry must do better.”
Regulatory Developments and Their Impact
Regulation was a recurring theme throughout Consensus 2025. Speakers examined various approaches to crypto regulation, including Canada’s model of classifying crypto contracts as securities.
Morva Rohani, Executive Director of Canada’s Web3 Council, noted:
“The pro is definitely more regulatory clarity than in some other jurisdictions. The disadvantage is a lack of flexibility and room for experimentation.”
She cited stablecoins as an example of an innovation that doesn’t fit neatly into existing frameworks and called for more tailored regulatory solutions.
U.S. Congressman French Hill, in a pre-recorded interview, discussed progress on market structure and stablecoin legislation. He emphasized bipartisan support for laws that facilitate digital asset activities while ensuring consumer protection.
Bo Hines from the President’s Council of Advisors on Digital Assets also outlined current legislative efforts, including the Genesis Act and interagency collaborations. These discussions highlighted the ongoing work to create a balanced regulatory environment that fosters innovation while mitigating risks.
Frequently Asked Questions
What is asset tokenization?
Asset tokenization refers to the process of converting physical or financial assets into digital tokens on a blockchain. This enables fractional ownership, improves liquidity, and allows for faster and more transparent transactions.
How can investors earn yield in crypto?
Investors can generate yield through various methods, including staking, lending, providing liquidity in decentralized exchanges, and participating in yield-bearing stablecoin protocols. Each method carries different risk levels and return profiles.
What was the main theme of Consensus 2025?
The dominant theme was the maturation and mainstream integration of digital assets. Discussions highlighted the convergence of traditional finance and DeFi, the growing importance of regulatory clarity, and the expansion of yield-generating opportunities in crypto.
Are stablecoins regulated?
Regulation of stablecoins varies by jurisdiction. In the U.S., proposed legislation aims to create clear guidelines for stablecoin issuers. Other regions, like Canada, are also refining their regulatory approaches to include these digital assets.
What is the significance of Bitcoin becoming a yield-generating asset?
The ability to earn yield on Bitcoin enhances its utility as an investment asset. Through mechanisms like staking and tokenization, Bitcoin holders can generate passive income, making it more attractive to institutional and long-term investors.
How is DeFi impacting traditional finance?
DeFi is introducing new levels of efficiency, transparency, and accessibility to financial services. Traditional institutions are increasingly adopting DeFi elements such as blockchain-based settlements, smart contracts, and tokenized assets to improve their offerings.
Conclusion
Consensus 2025 made it evident that the digital asset industry is evolving beyond its early stages. With TradFi and DeFi increasingly intertwined, and with ongoing regulatory advancements, cryptocurrencies are poised to become a core component of the global financial system.
The event highlighted both the opportunities and challenges ahead—from yield generation and tokenization to regulatory harmonization. As the industry continues to mature, these developments will play a critical role in shaping the future of finance.
For those looking to deepen their understanding of these trends, it’s valuable to explore more strategies and stay informed through reliable industry sources.