The crypto industry is at a pivotal moment as global financial authorities begin to embrace digital assets. Outgoing Financial Stability Board (FSB) Chair Klaas Knot recently stated that crypto may have reached a tipping point, with barriers for retail investors significantly lowered and institutional adoption on the rise.
During his final address at a Financial Stability Conference in Madrid, Knot highlighted the drop in barriers for retail access to crypto, citing the introduction of crypto ETFs and stablecoin issuers holding substantial Treasury reserves. While he noted that crypto currently does not pose systemic risk, he emphasized the need for closer monitoring as the market approaches mainstream financial integration.
The institutional infrastructure supporting crypto has seen rapid growth, with major financial players positioning themselves for widespread adoption. UK-listed IG Group became the first London Stock Exchange company to offer retail crypto trading, allowing clients to trade 38 cryptocurrencies through a partnership with digital asset platform Uphold. Managing Director Michael Healy described the demand as reaching a tipping point, positioning the firm as a trusted alternative for crypto services.
Stripe, a leading payments giant, has also expanded its crypto offerings by acquiring crypto wallet infrastructure startup Privy. This move allows Stripe to offer comprehensive crypto infrastructure, including wallet creation, stablecoin payments, and fiat integration, catering to the growing business demand for crypto solutions.
Government-led initiatives are further driving mainstream adoption of digital assets. Thailand’s Ministry of Finance announced the launch of $150 million worth of digital investment tokens, allowing retail investors to purchase government bonds via blockchain-based “G-tokens” with a low minimum investment threshold. China’s Zhejiang Province has integrated digital yuan pilots into its economic strategy, testing the central bank digital currency in retail scenarios to enhance consumer transactions.
In the UK, the government is tightening oversight on crypto firms by requiring them to collect detailed customer information on every trade starting in 2026. This includes recording full names, addresses, tax identification numbers, and transaction details to ensure compliance with HMRC regulations.
These developments indicate that the crypto industry has indeed reached a tipping point, with traditional financial barriers diminishing as digital assets become more integrated into mainstream economic systems. The increasing institutional adoption and government-led initiatives signal a significant shift towards widespread acceptance of digital assets in the global financial landscape.