This Week in Web3 Innovation: Crypto Policies, Payments and Stablecoins

It finally happened. In 2024, bitcoin topped $100,000, capping off a year of growing mainstream adoption and technological innovation.

Will 2025 bring cryptocurrency fans similar good fortune? Certain experts think bitcoin, the first cryptocurrency, could double its record-high valuation and reach $200,000.

But bitcoin’s rise is just one chapter in the ongoing story of cryptocurrency’s evolution and the blockchain industry’s maturation. The future of digital assets is not just about price points and market caps — it’s about how these Web3 technologies are working to reimagine digital finance and commerce on a global scale.

Institutional interest, regulatory clarity and mainstream utility are driving forces that could shape this potential trajectory.

Regulation as a Catalyst and Not a Constraint

Regulation has long been seen as crypto’s biggest hurdle, but 2024 flipped that narrative and 2025 could continue the trend.

2024 began with the Securities and Exchange Commission approving bitcoin ETFs after years of opposing the idea. BlackRock’s bitcoin exchange-traded fund (ETF) allegedly gave bitcoin a push and helped the cryptocurrency’s price rise above the $100,000 mark, per a PYMNTS report.

In Europe, the Markets in Crypto-Assets (MiCA) regulation laid a robust framework for crypto companies looking to shed their “Wild West” image and enter the financial mainstream. According to a Monday (Dec. 30) announcement, digital assets platform MoonPay said it is among the first companies to have secured approval under the EU’s MiCA cryptocurrency regulations.

Still, one of the knocks of crypto remains its use to avoid regulations. Russian businesses are reportedly using bitcoin and other cryptocurrencies to make international payments. It’s a trend that comes in the wake of legislative changes that permitted these types of payments to get around western sanctions, it was reported Tuesday (Dec. 26).

Reportedly, the pre-2025 domestic regulatory dynamic surrounding crypto in the U.S. has even led to people like venture capitalist Marc Andreessen arguing that banks were cutting ties with customers on the political right, or with industries such as the cryptocurrency sector.

As crypto continues its march toward mainstream adoption, its role in enterprise finance is growing. PYMNTS explored the reality of crypto for cross-border payments, though not those designed to evade sanctions, this Tuesday (Dec. 31). “Cross-border payments, historically plagued by high fees and slow transaction times, underwent a significant transformation in 2024,” that report said. “Blockchain technology emerged as a key enabler, offering transparency, speed and cost efficiency.”

CFOs and treasurers are finding themselves at the forefront of what could be a financial revolution. Staying ahead of terms like ”stablecoin sandwiches,” zero-knowledge proofs, atomic swaps, on-chain liquidity and more will allow financial leaders to make informed decisions about integrating these technologies into their payment systems.

From Partnerships to Payments

For crypto to sustain its momentum, it must deliver on its promise of utility. The days of speculative hype are fading to reveal a focus on real-world applications that enhance transparency, reduce costs and improve efficiency.

Crypto adoption is also taking root in the Middle East, where partnerships are more than localized efforts. They’re signals of crypto’s global ambitions.

Crypto.com partnered with the United Arab Emirates’ Dubai Islamic Bank (DIB), announced Monday (Dec. 30). The partnership follows another Crypto.com project in the region, as the company earlier received a license to launch a Mastercard-powered card in Bahrain. Crypto.com eventually plans to expand the card offering to other Gulf countries, including Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

During 2024, stablecoins’ role as a bridge between traditional finance and digital currencies became more pronounced. As recently as Dec. 23, Wirex added two new stablecoins to its digital payments platform, while holiday moviegoers this year were allowed to buy tickets and concessions at Regal theaters around the United States using the USDC stablecoin.

See also: How 15 Pivotal Events Impacted the Digital Economy in 2024

Decentralized stablecoin cryptocurrency protocol Frax Finance also launched a stablecoin that it said offers “unprecedented” transparency and custody. The frxUSD stablecoin is a rebranded evolution of the company’s flagship FRAX stablecoin and will leverage BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, Frax said Thursday (Jan. 2).

In another, separate development, it was reported Thursday that stablecoin leader Tether has seen its market value decline amid new European Union (EU) cryptocurrency rules, with the company’s USDT having its sharpest weekly drop in two years.

Meanwhile, digital asset prime broker FalconX acquired Arbelos Markets to expand its derivatives business and strengthen its position among cryptocurrency derivatives dealers, it was announced Thursday. The acquisition comes at a time when positive regulatory momentum and the growth of exchange-traded funds (ETFs) and derivatives markets have driven growth in the institutional market.

Elsewhere on Thursday, KuCoin introduced a solution designed to bring cryptocurrency payments into the retail sector by letting customers complete purchases via KuCoin — once integrated into a merchant’s payment system — by scanning a QR code or using the KuCoin app.