The blockchain market is projected to reach USD 610.96 billion by 2031, according to MarketsandMarkets, despite a cryptocurrency downturn that began in October 2025. While crypto prices have been weak, the underlying technology continues to advance, particularly in areas like stablecoins and tokenized assets.
This progress is occurring most rapidly in segments where price speculation is less of a factor. Payment companies and banks are actively building on blockchain infrastructure, shifting the technology from a speculative tool to a foundational element for payment settlement, cross-border money movement, and asset holding. This transition presents both opportunities and risks for financial institutions.
Stablecoins, digital tokens pegged to a currency like the U.S. dollar, now represent approximately 86% of the roughly $346 billion in tokenized assets, according to Token Terminal. They are becoming the primary method for transferring money on blockchains. While regulatory frameworks are developing, such as America’s GENIUS Act signed in July 2025, the final details for stablecoin issuers have been delayed, with the law now set to take effect no later than January 18, 2027.
Major payment firms are not waiting for these final regulations. Tempo, a payments blockchain developed by Stripe and Paradigm, launched in March, allowing users to pay transaction fees using stablecoins. Visa is among Tempo’s first validators, companies that confirm transactions. This development poses a direct challenge to traditional revenue streams from cross-border payment fees for companies like Revolut and European banks.
Tokenization involves placing traditional assets, such as bonds, funds, or property, onto a blockchain for instant trading and settlement. Excluding stablecoins, the value of tokenized assets ranges from approximately $40 billion to $48 billion. Tokenized U.S. Treasuries, valued at nearly $15 billion, are currently the most prominent category for practical use, offering investors a safe, income-generating asset that can be moved around the clock, especially with Treasury yields above 5%.
In contrast, tokenized property remains a small market, with only about 3% of the core market accessible to ordinary U.S. investors. This area of digital asset expansion is distinct from the broader discussions around the Solana’s USD 7 Billion Tokenized Asset Market, which highlights the growing liquidity infrastructure needs for such assets.
Ethereum, the blockchain underpinning many stablecoins and tokenized assets, is preparing for its next significant upgrade, Glamsterdam. The upgrade reached the Sepolia test network on October 6, with a main network launch targeted for the fourth quarter, though the exact date remains unconfirmed and the schedule has already seen delays. Glamsterdam introduces two key changes: EIP-7732, which shifts block building from trusted intermediaries to network rules, and EIP-7928, enabling parallel transaction processing for increased speed and reduced costs. A subsequent upgrade, Hegotá, is planned for 2027.
Meanwhile, legislative progress in the U.S. has stalled. The CLARITY Act, intended to establish rules for crypto markets, failed to advance in the Senate on September 15, falling short of the required votes due to disagreements over ethics rules concerning officials’ crypto holdings. With the midterms approaching on November 3, the bill is likely to be considered by the next Congress. This regulatory uncertainty in the U.S. contrasts with Europe’s MiCA regulation, which provides a unified rulebook for crypto across the EU, offering European firms greater clarity compared to their U.S. counterparts. This regulatory environment is crucial in a sector still impacted by fraud and criminal activity, a concern echoed in discussions about U.S. Crypto Regulation.
A significant long-term risk to blockchain security is quantum computing. A March paper from Google Quantum AI estimated that breaking the digital signatures securing Bitcoin and Ethereum could require fewer than 500,000 physical qubits, a considerably lower number than previous estimates. Google has set an internal deadline of 2029 for migrating to quantum-safe systems.
Bitcoin’s transition to quantum-resistant signatures is progressing slowly, with a proposal merged in February, but a full migration could take over seven years. Ethereum aims to achieve quantum resistance before 2030. Any digital asset unable to upgrade in time faces potential security risks. The European Banking Authority has also set precedents for fines under MiCA rules, with a 12.5% revenue fine cap for crypto violators, indicating a growing focus on regulatory compliance.
The ongoing crypto price slump has obscured the fundamental shift of blockchain technology into essential infrastructure, utilized by major companies like Stripe and Visa, and asset managers, rather than solely by speculators. The future trajectory will be influenced by the launch date of Glamsterdam, the finalization of U.S. stablecoin rules, the fate of the CLARITY Act in the next Congress, and Bitcoin’s response to the quantum threat. Of these factors, the quantum computing risk is highlighted as the most critical for businesses to monitor, as price volatility is temporary, but a compromised security model could be permanent.
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