From MicroStrategy spinning off stocks to major banks acquiring cryptocurrency companies, Bitcoin is about to enter the 'Wall Street' era.
Article author: Ledn CEO Mauricio Di Bartolomeo, CoinDesk
Source: CoinDesk
Article compiled by: Bai Shui, Golden Finance
When Michael Saylor announced in August 2020 that MicroStrategy would convert $250 million of its treasury reserves into Bitcoin, Wall Street analysts considered it a reckless gamble. Saylor claimed at the time that Bitcoin was 'better than cash,' which raised skepticism in traditional banking circles.
However, today, those banks that once mocked the adoption of Bitcoin by businesses are now scrambling to get involved in Bitcoin mortgages as they compete to leverage Bitcoin's superior characteristics as institutional-grade collateral and the thriving product market fit.
Traditional collateral (e.g., real estate) requires manual evaluations, subjective appraisals, and complex legal frameworks (which vary by jurisdiction). In contrast, Bitcoin offers instant verification of collateral support, 24/7 real-time settlement and clearing capabilities through public blockchain data, uniform quality regardless of geography or counterparty, and the ability to programmatically execute loan terms.
When lenders realize they can instantly verify and potentially clear Bitcoin collateral at 3 a.m. on a Sunday—while real estate is left waiting for manual appraisals, subjective valuations, and possible evictions—there will be no turning back.
1. Traditional banking succumbs to Bitcoin
MicroStrategy's (MSTR) approach fundamentally changed how publicly traded companies view Bitcoin as a financial asset. The company is not simply holding Bitcoin, but has pioneered a financial model that leverages the public market to expand its cryptocurrency position—raising funds to purchase Bitcoin through convertible notes and stock issuance on the market. This strategy has allowed MicroStrategy to utilize the same financial engineering that has empowered traditional banks, but with Bitcoin as the underlying asset instead of traditional financial instruments and real estate, leading to MicroStrategy's performance significantly outperforming spot Bitcoin ETFs.
Therefore, one of my predictions for 2025 is that MSTR will announce a 10-for-1 stock split to further expand its market share, as this will allow more investors to purchase shares and options contracts. MicroStrategy's actions demonstrate how deeply Bitcoin has penetrated traditional corporate financing.
I also believe that as long-term holders and new investors seek greater yields from their positions, financial services built around Bitcoin will gain immense popularity. We expect Bitcoin mortgage and revenue-generating products for global Bitcoin holders to grow rapidly.
Moreover, there is an almost poetic answer to why Bitcoin-backed loans have become so popular—they are a true representation of financial inclusion, with business owners in Medellín facing the same collateral requirements and interest rates as those in Madrid. Every Bitcoin has the same properties, verification standards, and clearing processes. This standardization eliminates the arbitrary risk premium historically imposed on borrowers in emerging markets.
For decades, traditional banks have promoted 'global impact' while maintaining starkly different lending standards across regions. Now, Bitcoin-backed loans expose the essence of this hereditary inefficiency: the remnants of an outdated financial system.
2. As capital flows freely, borders disappear
Countries are entering a new era of competition for Bitcoin business and capital. Therefore, we expect to see new tax incentives targeting Bitcoin investors and businesses by 2025. These incentives will be implemented alongside rapid visa programs for cryptocurrency entrepreneurs and regulatory frameworks aimed at attracting Bitcoin companies.
Historically, countries have competed for manufacturing bases or regional headquarters. They are now competing for Bitcoin mining operations, trading venues, and custody infrastructure.
El Salvador's Bitcoin treasury status represents an early experiment in national Bitcoin reserves. While experimental, their actions and the recent proposal for a Bitcoin strategic reserve in the U.S. force traditional financial centers to confront Bitcoin's role in sovereign finance.
Other countries will study and attempt to replicate these frameworks, preparing their initiatives to attract capital flows priced in Bitcoin.
3. Opening the door for bank participants
In the debt market, necessity drives innovation. Public companies now often leverage the bond market and convertible notes to finance Bitcoin-related transactions. This practice has transformed Bitcoin from a speculative asset into a cornerstone of corporate financial management.
Companies like Marathon Digital Holdings and Semler Scientific have successfully followed MicroStrategy's lead and seen returns in the market. This is the most important signal for financial managers and CEOs. Bitcoin has now caught their attention.
Meanwhile, the Bitcoin lending market has made significant strides in the past two years. Serious institutional lenders now demand appropriate collateral isolation, transparent custody arrangements, and conservative loan-to-value ratios. This standardization of risk management practices is precisely what has attracted previously reserved institutional capital.
Regulation is becoming clearer. This should open the door for more banks to participate in Bitcoin financial products—which will benefit consumers the most, as new capital and competition will drive down interest rates and make Bitcoin-backed loans more attractive.
4. The intensification of Bitcoin and cryptocurrency mergers and acquisitions
With the regulatory clarification surrounding SAB 121 resolutions involving cryptocurrency custody and other guidance, banks will face a pivotal choice: to build or acquire ways to enter the growing Bitcoin and lending markets. Thus, we predict at least one of the top 20 U.S. banks will acquire a cryptocurrency business next year.
Banks want to act quickly, and the development timeline for cryptocurrency infrastructure exceeds the competitive window, while established firms are processing billions of transactions monthly through proven systems.
These operating platforms represent years of specialized development that banks cannot quickly replicate. The acquisition premium has diminished relative to the opportunity cost of delaying market entry.
The combination of operational maturity, regulatory clarity, and strategic necessity creates natural conditions for banks to acquire cryptocurrency capabilities.
5. Public market validation of Bitcoin infrastructure
The cryptocurrency industry is poised for a breakthrough year in the public markets. We expect at least one high-profile cryptocurrency initial public offering in the U.S. with a valuation exceeding $10 billion. Major digital asset companies have established complex institutional service layers, with revenue streams now comparable to those of traditional banks, processing billions of dollars in daily transactions, managing substantial custody operations through rigorous compliance frameworks, and generating stable fee income from regulated activities.
Therefore, the next chapter of finance will not be written by those resisting this change, but by those recognizing their survival depends on embracing it.
