Multipolitan’s Crypto Report 2025, titled "The Future is Onchain," presents an in-depth analysis of the cryptocurrency market at a critical juncture, influenced by intensifying geopolitical pressures, rapid technological breakthroughs, evolving wealth preferences, and shifting regulatory environments. The report aims to cut through the noise to reveal how these dynamics are reshaping the crypto ecosystem and blockchain adoption globally. Drawing on insights from 13 expert commentaries, the report explores blockchain’s transformative impact across finance, asset management, and governance.
Key developments highlighted include a potential pro-crypto regulatory shift in the U.S., rapid adoption of Bitcoin and digital assets among younger generations, accelerated tokenization of traditional assets, and increasing governmental blockchain integration. The report illustrates how technological advancements, demographic trends, and geopolitical forces are driving a future that is decisively on-chain, fundamentally reshaping finance, governance, and society.
Key Takeaways
The Executive Summary outlines several critical key takeaways shaping the crypto landscape in 2025:
- Crypto Ownership: The UAE leads globally with 25.3% ownership, followed by Singapore, Turkey, Argentina, and Thailand.
- Generational Adoption: Millennials and Gen Z are showing significantly higher crypto adoption rates, at least three times greater than Baby Boomers.
- U.S. Market Influence: U.S. crypto trading reached $2.06 trillion between 2022 and 2024, with pro-crypto policies under the potential Trump presidency fueling optimism.
- Tokenization Boom: Regulated tokenization is identified as a necessity, with the total tokenization market projected to exceed $2 trillion by 2030.
- Metaverse Engagement: Gen Z reportedly spends twice as much time in the metaverse compared to real life.
- Strategic Residency Moves: Wealthy crypto investors ("crypto whales") are strategically combining Caribbean citizenship with Dubai's Golden Visas, while Oman is emerging as a tax-friendly hub.
- Family Offices Entering: Family offices are increasingly allocating measured portions of assets into crypto, signaling growing confidence in the asset class.
- Ethereum’s Scaling Crisis: Ethereum faces scaling challenges, with ZKsync positioned as a key solution.
- Digital ID Revolution: Blockchain digital IDs could potentially empower billions of people worldwide who lack official identification.
The Crypto Friendly Cities Index 2025
The report unveils the Crypto Friendly Cities Index for 2025, spotlighting global hotspots attracting crypto wealth, innovation, and talent. It identifies cities primed for crypto dominance based on factors like clear regulations, favorable taxes, advanced tech infrastructure, talent pools, and dynamic innovation ecosystems.
The index underscores a reshaping of global financial and technological hubs, with wealth, talent, and innovation migrating towards cities embracing blockchain and digital assets, and away from jurisdictions hostile to crypto. The most successful cities of the future are seen as those betting big on blockchain. Reasons for this shift include:
- Regulatory Arbitrage: Businesses, investors, and pioneers are drawn to jurisdictions with clear, consistent, and crypto-friendly regulation, as demonstrated by companies like Binance and Coinbase considering relocation due to regulatory friction. Regulatory clarity is deemed essential.
- Digital Nomads & the Multipolitan Future: Crypto wealth is borderless, and its holders increasingly adopt a "Multipolitan Lifestyle," diversifying residencies and assets across pro-crypto jurisdictions. Stability, low taxes, and innovative policies are becoming prerequisites for cities attracting these individuals.
- First-Mover Advantage: Cities quick to embrace crypto gain significant economic advantages. El Salvador became a global Bitcoin hub, and Dubai's fintech policies have made it a financial heavyweight.
- Follow the Money and Talent: Crypto-friendly cities are becoming magnets for wealth, innovation, and elite talent, while places with regulatory hostility risk losing their competitive edge and driving talent away.
- Crypto: The Parallel Financial Revolution: Governments that proactively adopt crypto can attract investment, tax revenue, and economic growth, while those that resist risk capital flight and brain drain.
The index goes beyond surface-level metrics like taxes, employing a rigorous, multi-metric analysis. The methodology involved pre-selecting 27 cities based on five country-level criteria: clear legal status of cryptocurrencies, robust economic growth, stable and predictable regulatory framework, high-income classifications, and quality of life. Cities needed to be not only business-friendly but also livable, considering factors like healthcare, safety, and cost of living. These cities were then assessed across five crypto integration metrics: Regulatory Environment, Tax Regime, Wealth & Lifestyle, Digital Infrastructure, and Crypto Infrastructure (including crypto ATMs and retail adoption). Cryptocurrency culture was weighted double in the final scoring.
According to Multipolitan’s 2025 Crypto Friendly Cities Index, the top cities are:
- Ljubljana
- Hong Kong
- Zürich
- Singapore
- Abu Dhabi
- Luxembourg City
- Muscat
- Porto
- Oslo
- Sydney
Other cities mentioned in the index list include Riga (11th), Bratislava (12th), Madison (Wisconsin, 13th), Valletta (15th), Nicosia (16th), Vilnius (17th), Sofia (18th), Riyadh (19th), and London (20th). Jurisdictions losing crypto talent are identified as parts of the U.S. (due to regulatory hostility), China (ban-driven exodus), and parts of the EU (uncertain regulatory path for some countries).
The report also examines the concentration of crypto wealth, noting that tracking ownership numbers isn't enough; understanding who holds substantial wealth is crucial. The Multipolitan’s Crypto Wealth Concentration Index 2025 combines crypto ownership rates and trading volume, adjusted by the Gini coefficient, to analyze where crypto wealth truly resides.
The top countries/regions by average trading volume per crypto owner are:
- Slovenia: $240,460.17 USD
- Hong Kong: $174,972.89 USD (Note: Source states $77,000 per user for Hong Kong, while source lists $174,972.89 USD as the value. The $174k value aligns with the rank 2 position)
- Republic of Ireland: $97,531.40 USD
- Australia: $94,827.77 USD
- Switzerland: $85,536.63 USD
Other countries in the top 20 for wealth concentration include the United Arab Emirates (UAE), Cyprus, Singapore, Ukraine, Canada, Turkey, Germany, South Korea, Norway, Belgium, Chile, United States, Malaysia, Vietnam, and the Philippines.
Key crypto power players identified are:
- UAE: Unmatched in adoption rates with 25.3% of the population holding crypto, boosted by proactive government policies.
- India: Hosts the largest crypto community worldwide with 118.9 million holders, driving massive market participation despite regulatory hurdles.
- USA: Dominates in trading volume, recording a massive $2.07 trillion, cementing its role as a critical node in global crypto finance.
- Slovenia, Cyprus, and Hong Kong: Small nations with big influence, showing high per-user trading activity and concentrated wealth.
The report emphasizes that crypto wealth is borderless and fluid, finding new homes where innovation and clarity converge.
Crypto’s Trump Card: Redefining the Blockchain Narrative
The report suggests a potential pro-crypto pivot in the U.S., particularly under a Trump presidency, could trigger a global regulatory domino effect. This shift could lead other countries to revise restrictive policies.
Donald Trump's views on crypto have evolved. Initially, there were hints of a potential regulatory crackdown, and enforcement actions occurred during his presidency. After the 2020 election loss, he maintained a crypto-skeptic stance. However, his engagement deepened later, promoting crypto platforms and declaring "Crypto is the future" in October 2024. Following his election win in November, he became more vocal in his support, stating the U.S. will "do something great with crypto".
The crypto industry is hopeful that a Trump 2.0 administration will mean fewer regulatory actions and scrutiny, aligning with his campaign promise to end the "persecution" of the crypto industry. Trump has also made pro-crypto appointments, including a new SEC Chair, Commerce Secretary, and White House crypto and AI tsar. While committed to the dollar remaining the world's currency, Trump now seems to view the crypto industry as an ally in maintaining America's financial hegemony. Key policy questions watched by crypto executives include classifying cryptocurrencies as commodities rather than securities. A friendly regulatory environment with necessary safeguards could lead to wider acceptance and potentially reduce crypto price volatility if institutional investors increase holdings.
Why Millennials And Gen Z Are Betting Big on Crypto
Millennials and Gen Z, the new generation of investors, show a greater appetite for cryptocurrencies. They are willing to look beyond traditional investments for optimal returns and do not fear new asset classes. Having grown up witnessing technology reshape markets, from NFT sales to major companies adopting Bitcoin, they increasingly see digital assets as a compelling portfolio addition.
Surveys indicate a significant shift in portfolio choices among these younger generations. They adopt or accept crypto at triple the rate of Baby Boomers. A PwC 2024 survey found that 29% of Gen Z and 25% of Millennials have invested in or used crypto, compared to only 8% of those over 50. A global Bitget report shows 46% of Millennials own crypto compared to 21% of Gen Z and 8% of Boomers. A Bank of America study found that 72% of wealthy Americans aged 21-43 doubt traditional assets can deliver above-average returns, opting for digital assets and real estate instead. Millennials and Gen Z allocate roughly 12-17% of their portfolios to crypto.
Younger investors view cryptocurrencies not just as a gamble but as an essential portfolio component, especially amid global uncertainty. In hyperinflation economies, digital currencies are used for everyday transactions, bypassing devalued local currencies. Bitcoin's fixed supply is seen as a hedge against inflation. This generation recognizes how quickly new technologies become mainstream and sees crypto anchoring the next wave of financial innovation; for them, the risk is missing out on future growth by sticking to conventional wisdom.
Their comfort with multitasking and on-the-go lifestyles translates into crypto investing, demanding mobile-friendly platforms. They engage deeply with NFTs, gaming, and Decentralized Finance (DeFi) protocols, which they see as core parts of their social and investment ecosystems, enabling self-expression, community-building, and financial autonomy.
Social media and meme culture significantly influence crypto growth, though navigating reliable information is a challenge. Due diligence is crucial due to evolving regulations and potential scams. Understanding fundamentals, technology, utility, and security is essential for picking promising projects. Knowledge is a powerful edge in the fast-changing crypto world.
Sovereign Shift: Alternative Citizenship & Residencies
The significant wealth generated by early crypto adopters has led many Crypto UHNWIs and HNWIs to seek alternative residencies and citizenships. This move is driven by the need to safeguard wealth from varying and potentially restrictive regulations in their home jurisdictions. They leverage the borderless nature of crypto wealth while recognizing its geographic concentration in operations like mining.
Crypto-friendly countries actively court these individuals by offering regulatory arbitrage through attractive incentives: favorable regulations, low tax rates, advanced digital infrastructure, and tax-free zones. Many of the top crypto-friendly cities are firmly on the radar of elites seeking residency alternatives.
Examples of jurisdictions offering attractive incentives include:
- UAE: Offers zero personal income tax, regulatory clarity through VARA, a thriving ecosystem for businesses, and attractive real estate investment opportunities. The Golden Visa requires an investment of AED 2 million and offers 10-year renewable residency. Dubai has emerged as a top destination for crypto whales.
- Portugal: Does not impose taxes on profits from cryptocurrency trading if held for over a year. The Golden Visa requires a €500,000 investment in a qualifying fund. It has also become home to a "Bitcoin family" and a crypto village.
- Malta: Was the first country to establish a comprehensive regulatory framework for blockchain and DLT companies. It does not tax capital gains, except for short-term trading. Permanent residency can be obtained with a €375,000 real estate investment. Malta has become a hub for crypto businesses relocating within the EU.
- Switzerland and Singapore: Provide robust regulatory certainty and favorable taxation. Zug Valley, near Zurich, is known as "Crypto Valley" and is home to Ethereum's origins and many crypto businesses. Singapore ranks high in the Crypto Friendly Cities Index.
- Caribbean Nations (e.g., Antigua and Barbuda): Offer zero capital gains, inheritance, or wealth taxes, serving as a valuable lifeline for investors facing high taxes elsewhere. Citizenship in these nations acts as an "insurance policy" and diversifies geographic ties. They recognize digital assets as legitimate once converted to fiat.
- Oman (Muscat): Emerging as a tax-friendly hub with zero personal income tax and a developing legislative framework to attract digital investments. Oman's Capital Market Authority announced plans to draft virtual asset regulations, positioning Muscat as a potential fintech-friendly hub.
Beyond individual wealth, crypto businesses and talent are also migrating to friendlier jurisdictions. This "brain drain" from less favorable locations leads to job creation in destination countries.
Blockchains as “Places”: Metaverse, Network States, Digital IDs and E-Governance
Blockchain technology is evolving beyond finance to reshape how governments and nations deliver public services, enabling decentralized, transparent, and immutable systems for identity verification, welfare distribution, and digital payments.
A new idea is the Network State: a borderless nationhood built on blockchain and the metaverse. Proposed by Dr. Balaji Srinivasan, a Network State starts as an ideologically aligned community, evolving into a network union that builds trust offline and an economy online using cryptocurrency. It aims to crowdfund physical spaces, linking them into a network archipelago accessible via web3 crypto passports, seamlessly integrating online and offline worlds. An on-chain, auditable census helps it gain traction before seeking diplomatic recognition.
Blockchain technology is also critical for Digital Identity (Digital IDs) and E-Governance. Countries like South Korea are implementing blockchain for digital IDs, and Palau has launched a digital residency program issuing NFT-based IDs. Digital IDs are crucial for empowering individuals lacking official identification, enabling them to exercise rights and access services.
Blockchain-based systems can govern Network States, with protocols like ENS acting as digital identities for accessing spaces and opting into governance rules, and systems like Kleros facilitating dispute resolution. An integrated cryptocurrency can serve as the digital backbone, managing transactions, smart contracts, digital assets, identities, property registries, and public statistics.
Regulatory compliance, such as KYC/AML and GDPR, is being addressed. Blockchain KYC utilities can streamline access to customer data, reducing processing time and costs, while offering regulators better oversight. Blockchain models can also give customers control over data access. Addressing GDPR's "right to be forgotten" is possible, for instance, by overriding it for legal obligations or by using private/permissioned blockchains. Off-chain data storage and smart contracts can also help manage data access and deletion after set periods.
More governments are adopting e-governance using blockchain. Estonia is a prime example, integrating services like healthcare, education, banking, and taxes into a unified digital ecosystem via a secure digital ID. Its "once only" principle ensures data is securely shared without citizens repeatedly providing information. Estonia also launched an e-Residency initiative allowing non-Estonians to manage EU businesses remotely. Other examples include China's blockchain financing platform and Georgia's land registry system.
Scaling blockchain adoption requires common standards and interoperability to avoid siloed systems. The Austrian School of Economics' view on sound money free from government manipulation is discussed in relation to central bank policies and the rise of Network States. Blockchain-based digital currencies offer an alternative governed by fixed rules. Network States could operate on crypto-native economies, with governance and services executed through decentralized mechanisms. As trust in legacy institutions wanes, blockchain is redefining governance, identity, and nationhood.
Why The Future of Entrepreneurship is Onchain?
The traditional 9-to-5 job is yielding to portfolio careers and passion projects, but entrepreneurs still face complex financial and administrative systems. The report argues the future of entrepreneurship is "Onchain," leveraging blockchain to make starting and running a business simpler, more transparent, and scalable.
Blockchain-powered platforms can streamline payments, payroll, and financial management, reducing time spent on admin tasks. Work is becoming more fluid, with people seeking more control over earning through freelancing and side hustles. The idea is that anyone with an idea should be able to build it without being hindered by outdated systems.
Onchain solutions enable building without borders, removing the complexities of traditional banking for global teams and clients. Organizations are becoming digital-first, global from day one, structured to operate openly and efficiently. Decentralized teams and token incentives are embraced to align contributors and reward work based on impact. This shift, like open-source transforming software development, will reshape how companies collaborate at scale. The future of work is shaped by flexibility, inclusivity, and boundless innovation.
From Scepticism to Systematic Strategy - How Family Offices are Embracing Digital Assets
Family offices, traditionally skeptical, are increasingly viewing digital assets as a legitimate portfolio component. This shift is driven by the rapid growth of cryptocurrencies, rising institutional adoption, and the search for diversification and inflation hedges. Over 90% of family offices in Hong Kong and Singapore are already investing or planning to invest in digital assets.
Volatility remains a primary hurdle, but digital assets are seen as a potential hedge against inflation and currency devaluation, potentially acting as "next-gen gold". Many family offices adopt a measured approach, often limiting exposure (e.g., around 5% of the portfolio) and using risk management signals.
Generational differences exist, with younger clients more comfortable embracing blockchain and pushing for higher allocations, while older generations prioritize stability. Tailored education and risk-managed strategies are needed to address these differences. Regulatory developments in jurisdictions like Hong Kong, Singapore, and ADGM are crucial in building confidence by providing clearer frameworks for security, compliance, and tax obligations.
Beyond cryptocurrencies, family offices are exploring the potential of tokenization. Tokenizing real-world assets (RWAs) like real estate, private equity, fine art, and luxury collectibles enables fractional ownership, increasing accessibility and liquidity. Tokenization transforms previously illiquid assets into tradable stakes.
Essential infrastructure for family offices includes robust custodial solutions, trading platforms, and compliance tools (like blockchain analytics). While the industry is maturing, combining best-in-class providers can deliver institutional-grade reliability. The report predicts digital assets will become a mainstream feature of diversified portfolios over the next decade, advising family offices to start small, manage risks, and partner with experts.
The $2 Trillion Digital Asset Revolution: How Regulated Tokenization is Transforming Global Finance
Tokenization is highlighted as the next evolution in global finance, leveraging blockchain to represent real-world assets digitally. The market for tokenized assets is forecasted to exceed $2 trillion by 2030. Traditional financial institutions like BlackRock, Goldman Sachs, JPMorgan, and HSBC are actively exploring tokenization to enhance efficiency and democratize access to capital markets.
Regulated tokenization is crucial, and platforms specializing in this area are bridging traditional finance with blockchain by integrating compliance engines, marketplaces, and digital asset administration. Tokenization democratizes capital markets by enabling fractional ownership, lowering entry barriers to asset classes previously restricted to UHNWIs and institutions.
The future vision is a regulated, scalable, and efficient ecosystem where tokenized assets seamlessly integrate into capital markets, fostering greater efficiency, transparency, and accessibility. Tokenization is seen as a financial revolution redefining asset management, trading, and investment.
From Paper to Protocol: The Need for Tokenized Securities
Focusing specifically on securities, the report highlights the inefficiencies of traditional capital markets, which are plagued by paper-based processes, high costs, long settlements, limited access, and liquidity constraints in private markets.
Tokenization offers a solution by creating digital representations of securities on a blockchain. This enables fractional ownership, eliminates intermediaries, uses smart contracts, enhances issuance/distribution/trading, reduces costs, shortens settlement times, and improves liquidity in private markets. Regulatory frameworks like the European DLT Pilot Regime are crucial for widespread adoption by providing clear legal pathways. The future of capital markets sees tokenization unlocking trillions in illiquid assets and becoming a cornerstone of the modern financial system.
Ethereum’s Scaling Revolution: How ZKsync is Shaping the Next Decade of Blockchain
Ethereum's ambition to be a global settlement layer faces the critical challenge of scaling, resulting in network congestion and high transaction fees. ZKsync is presented as a groundbreaking layer-2 solution utilizing zero-knowledge (ZK) rollups to address this.
ZKsync enables transactions at lightning-fast speeds and significantly lower costs while preserving Ethereum's security. It has evolved into the Elastic Network, a cluster of interconnected chains, aiming for 10,000 transactions per second per chain with horizontal scaling capabilities.
Key features of ZKsync include simplified user and developer experiences through native account abstraction and a Smart Sign On (SSO) toolkit, eliminating complexities like gas fees and seed phrases. It offers customization and privacy for enterprises through private, permissioned, or hybrid chains, allowing secure data and asset transfer. ZKsync addresses the blockchain trilemma (security, scalability, decentralization) without compromise. It also prioritizes interoperability to create a unified ecosystem and is a leader in Real-World Asset (RWA) tokenization, ranking second only to Ethereum in Total Value Locked (TVL). Its growth signals a shift towards institutional adoption, unlocking possibilities for financial transformation and digital identity. AI is also expected to play a role in enhancing blockchain scalability, security, and governance.
Barbados: A Caribbean Epicentre for Blockchain and Innovation
Barbados is highlighted as a Caribbean hub for blockchain and innovation. It offers a stable environment, first-rate connectivity, and a high quality of life. The island has a history of digital innovation, including launching one of the earliest crypto exchanges in 2014.
Its attractiveness stems from an attractive corporate tax rate (5.5%), no capital gains taxes (without being flagged as a tax haven), robust legal frameworks, outstanding infrastructure, political stability, and advanced fiber optic connectivity. Blockchain is viewed as a tool for economic empowerment, facilitating financial inclusion, digital payments, p2p lending, and digital identity solutions. Barbados recognizes the potential of Decentralized Autonomous Organizations (DAOs) and the need to adapt legislation proactively. To solidify its position, Barbados needs a comprehensive Digital Assets Act, regulatory sandboxes, nationwide education, international cooperation, and regulator training. Barbados is positioned as an innovative economy aiming to secure its place as the Caribbean's leading technology hub.
Latin America’s Financial Revolution: How Blockchain is Bridging Infrastructure Gaps
Latin America faces significant financial infrastructure challenges, including high friction in cross-border payments, soaring remittance fees, limited financial inclusion (millions unbanked), currency volatility, and inflation. Transfero, a fintech leveraging blockchain, addresses these issues using stablecoins pegged to local currencies (BRZ for Brazil, ARZ for Argentina).
These stablecoins mitigate currency volatility, provide inflation hedges, and enable efficient, low-cost international transactions and financial inclusion without relying on traditional banks. Blockchain-based financial services face regulatory challenges in the region, but Transfero engages regulators, maintains compliance, and builds partnerships. Traditional banks are evolving into infrastructure partners, integrating crypto solutions, with Transfero offering its BaaSiC framework to facilitate this transition. Tokenization presents opportunities but also risks, highlighting the need for clear regulations and investor education. Transfero addresses adoption barriers through educational initiatives and security measures. Blockchain and stablecoins are revolutionizing cross-border payments, reducing costs and transaction times, and Transfero envisions a future global payment system dominated by stablecoins.
Conclusion
The Multipolitan Crypto Report 2025 paints a picture of a rapidly evolving digital asset landscape. The future is seen as fundamentally "on-chain," driven by technological innovation, shifting demographics (especially the embrace of crypto by Millennials and Gen Z), evolving regulatory environments (including a potential pro-crypto pivot in the U.S.), and a strategic move by wealthy individuals and businesses towards crypto-friendly jurisdictions. Tokenization is poised to transform global finance and capital markets by unlocking liquidity and democratizing access. Blockchain is also increasingly being adopted by governments for e-governance and identity solutions. The rise of "Network States" and on-chain entrepreneurship signifies a broader shift in how we might organize and work in the future. As the industry matures, clear regulation, robust infrastructure, and widespread education will be key to unlocking the full potential of digital assets and ensuring a more inclusive, efficient, and transparent financial and societal future.
.jpg)
.jpg)
