Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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The crypto industry may have reached a key juncture as global financial authorities embrace digital assets, with outgoing Financial Stability Board (FSB) Chair Klaas Knot declaring that crypto ‘may have hit a tipping point’ due to dramatically lowered barriers for retail investors and growing institutional adoption.
Knot’s assessment, delivered during his final address as FSB Chair at a Financial Stability Conference in Madrid, showed how barriers for retail crypto access have “dropped significantly,” particularly through the introduction of crypto ETFs and stablecoin issuers’ substantial Treasury holdings.
His warning comes as the crypto ecosystem’s links with traditional finance continue expanding. Stablecoins settled $27.6 trillion in transactions during Q1 2025 alone, doubling Visa’s entire 2023 settlement volume.
The FSB Chair emphasized that while crypto doesn’t yet pose systemic risk, recent developments suggest authorities must monitor this “fast-growing market” more closely as it approaches mainstream financial integration.
Institutional Infrastructure Races to Meet Demand
The institutional embrace of crypto infrastructure has accelerated dramatically, with major financial players already positioning themselves for widespread adoption.
A June 2 report by Cryptonews shows that UK-listed IG Group has become the first London Stock Exchange company to offer retail crypto trading. Retail clients can buy and sell 38 cryptocurrencies, including Bitcoin, Ethereum, and XRP, through a partnership with digital asset platform Uphold.
Managing Director Michael Healy described customer demand as “reaching a tipping point,” positioning the FTSE 250 firm as a trusted alternative to existing crypto services.
Most recently, Stripe’s aggressive crypto expansion further exemplifies this institutional momentum, with the payments giant acquiring crypto wallet infrastructure startup Privy following its $1.1 billion purchase of stablecoin platform Bridge.
Privy powers over 75 million accounts across more than 1,000 teams while facilitating billions in transaction volume. It allows companies to integrate crypto wallets directly into their platforms without traditional friction.
This acquisition allows Stripe to offer comprehensive crypto infrastructure spanning wallet creation, stablecoin payments, and fiat integration through a unified platform.
This addresses growing business needs, as over 81% of crypto-aware small and medium-sized businesses (SMBs) express interest in stablecoin adoption.
Government-Led Digital Asset Integration Gains Momentum
Government initiatives are also accelerating crypto mainstream adoption through direct blockchain-based investment products.
In May, Thailand’s Ministry of Finance announced it would launch $150 million worth of digital investment tokens within two months.
These tokens would allow retail investors to purchase government bonds via blockchain-based “G-tokens” with a minimum investment threshold of just $3.
Finance Minister Pichai Chunhavajira emphasized the initiative’s goal of broadening access to government-backed investments, particularly as commercial banks offer only 1.25% on 12-month fixed deposits.
Similarly, China’s Zhejiang Province has integrated digital yuan pilots into its “first-launch economy” strategy, testing the central bank digital currency in retail debut scenarios through the “Digital Yuan + First-Launch” initiative.
This represents a strategic shift from public services to consumer transactions, incorporating the currency within broader economic programs rather than treating it as a standalone technology.
The approach addresses public hesitation by linking digital payments to familiar retail experiences like store launches and branded spaces.
The UK government is simultaneously tightening oversight while expanding access. Starting in January 2026, crypto firms will be required to collect detailed customer information on every trade.
The new HMRC rules mandate that platforms record full names, addresses, and tax identification numbers for all users.
Each transaction, including cryptocurrency type and amount transferred, is also logged. Non-compliance penalties can reach up to £300 per user.
These developments suggest the crypto industry has indeed reached the tipping point Knot identified, with traditional financial barriers increasingly dissolving as digital assets integrate into mainstream economic systems.
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