Why Big Finance Is Diving Into Crypto in 2025 — and Why Retail Isn’t
Crypto in 2025 looks nothing like the hype-driven cycles of the past. Institutions have taken over, pouring serious capital into blockchain while retail quietly steps back.
Polygon Labs’ Head of Payments & RWAs, Aishwary Gupta, breaks down why Wall Street is moving in—and why everyday investors aren’t.
Institutions Now Control the Flow
Institutional money now makes up ~95% of all crypto inflows, while retail has dropped to 5–6%.
This shift comes as giants like BlackRock, Hamilton Lane, and Apollo allocate 1–2% of their portfolios to crypto through ETFs, tokenized assets, and on-chain fund structures.
The difference?
Infrastructure finally caught up.
Polygon’s partnerships with JPMorgan, Ondo, and AMINA Bank proved that public blockchains can support real finance—fast settlement, low fees, regulatory clarity, and audit-friendly architecture.
“Institutions don’t need sandboxes anymore. They can transact on real public rails,” Gupta says.
Why Institutions Are Entering
Two major forces are driving the shift:
1. Yield & Diversification
Tokenized treasuries, regulated staking, and on-chain credit markets give institutions steady, compliant returns.
2. Efficiency
Programmable assets, shared liquidity, and near-instant settlement reduce operating costs and unlock new financial models.
Why Retail Stepped Back
Retail investors were burned by:
• Meme coin volatility
• Unrealistic profit expectations
• Heavy losses and scams
Trust collapsed—but Gupta says retail isn’t gone for good.
Regulated, transparent products will eventually pull them back.
