Author: Ledn CEO Mauricio Di Bartolomeo, CoinDesk; Translated 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 this a reckless gamble. At the time, Saylor claimed that Bitcoin was 'better than cash,' which raised skepticism among traditional bankers.
However, those banks that once mocked the adoption of Bitcoin by enterprises are now scrambling to engage in Bitcoin mortgages as they rush to capitalize on the superior characteristics of Bitcoin as institutional-grade collateral and the thriving product-market fit.
Traditional collateral (such as real estate) requires manual appraisals, subjective evaluations, and complex legal frameworks (varying by jurisdiction). In contrast, Bitcoin provides instant verification of collateral support through public blockchain data, 24/7 real-time settlement and clearing capabilities, uniform quality regardless of geography or counterparties, and the ability to programmatically execute loan terms.
When lenders realize they can immediately verify and potentially liquidate Bitcoin collateral at 3 AM on a Sunday—while real estate waits for manual appraisals, subjective valuations, and potential evictions—there will be no going back.
1. Traditional banking succumbs to Bitcoin.
MicroStrategy's (MSTR) approach fundamentally changes how public companies view Bitcoin as a financial asset. The company does not merely hold Bitcoin but has pioneered a financial model that utilizes the public market to expand its cryptocurrency position—issuing convertible notes and selling stock in the market to fund Bitcoin purchases. This strategy has allowed MicroStrategy to leverage the same financial engineering that has empowered traditional banks, but with Bitcoin as the underlying asset rather than traditional financial instruments and real estate, 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 to gain more yield from their positions, financial services built around Bitcoin will become very popular. We expect rapid growth in Bitcoin mortgage and revenue-generating products among global Bitcoin holders.
Moreover, there is a nearly poetic answer to why Bitcoin-backed loans have become so popular—they are a true representation of financial inclusivity, where a business owner in Medellín faces the same collateral requirements and interest rates as one in Madrid. Every Bitcoin has the same attributes, verification standards, and settlement processes. This standardization eliminates the arbitrary risk premium historically imposed on borrowers in emerging markets.
For decades, traditional banks have been touting 'global influence' while maintaining drastically 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 Bitcoin business and capital competition. Therefore, we expect to see new tax incentives specifically aimed at Bitcoin investors and businesses by 2025. These incentives will be implemented alongside fast-track visa programs for cryptocurrency entrepreneurs and regulatory frameworks designed to attract Bitcoin companies.
Historically, countries have competed for manufacturing bases or regional headquarters. They are now competing for Bitcoin mining businesses, trading venues, and custody infrastructure.
El Salvador's Bitcoin treasury status represents an early experiment in national Bitcoin reserves. Although experimental, their actions and the recent proposal for a Bitcoin strategic reserve in the U.S. have forced traditional financial centers to confront Bitcoin's role in sovereign finance.
Other countries will study and attempt to replicate these frameworks, preparing their own initiatives to attract Bitcoin-denominated capital flows.
3. Opening the door for bank participants.
In the debt market, necessity drives innovation. Public companies now often use the bond market and convertible notes to fund 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 the lead of MicroStrategy and achieved market returns. This is the most important signal for financial managers and CEOs. Bitcoin is now catching their attention.
Meanwhile, the Bitcoin lending market has made significant progress in the past two years. Serious institutional lenders now require proper collateral isolation, transparent custody arrangements, and conservative loan-to-value ratios. This standardization of risk management practices is precisely what attracts previously reserved institutional capital.
Regulation is becoming clearer. This should open the door for more banks to participate in Bitcoin financial products—this will benefit consumers the most, as new capital and competition will drive down interest rates, making Bitcoin-backed loans more attractive.
4. Intensified Bitcoin and cryptocurrency mergers and acquisitions.
With the regulatory clarification involving cryptocurrency custody and other guidance from SAB 121, banks will face a critical choice: to build or purchase a way to enter the growing Bitcoin and lending markets. Therefore, we predict that at least one bank among the top 20 in the U.S. will acquire a crypto business next year.
Banks want to act quickly, but the development timeline of cryptocurrency infrastructure has outpaced the competitive window, while established firms have been processing billions in 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 delayed market entry.
The combination of operational maturity, regulatory clarity, and strategic necessity has created natural conditions for the banking industry 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 highly anticipated cryptocurrency initial public offering in the U.S. with a valuation exceeding $10 billion. Major digital asset companies have established sophisticated institutional service layers, with revenue streams now comparable to those of traditional banks, processing billions in daily transactions, managing large custody businesses through strict compliance frameworks, and generating stable fee income from regulated activities.
Therefore, the next chapter of finance will not be written by those resisting this transformation but by those who realize their survival depends on embracing change.
