Institutions Steer the Crypto Conversation
Traditional financial institutions, investment funds, and centralized players are increasingly shaping the crypto industry, according to Arthur Azizov, founder of B2 Ventures. Azizov said the current market cycle is dominated by institutional investors, exchange-traded funds (ETFs), governments, and stablecoin issuers.
Azizov believes big banks will enter the sector rapidly once they receive regulatory clarity. “It will be a matter of months from getting approval to launching a stablecoin,” he said, citing their large, loyal customer bases and established infrastructure.
Governments Accelerating Institutionalization
Azizov noted that governments are also driving the shift toward institutional control. Regulations are not just aimed at mainstream adoption but also at attracting technology companies, young talent, and fintech startups.
This trend includes a stronger emphasis on anti-money laundering (AML) rules and know-your-customer (KYC) compliance, already prevalent in APAC and Europe. Azizov expects similar measures to expand in the United States.
DeFi’s Vision Under Pressure
While institutional participation may bring legitimacy, it risks undermining the decentralized ethos that fueled crypto’s rise. The focus on consumer surveillance and registered accounts runs counter to decentralized finance’s promise of permissionless, censorship-resistant systems.
Azizov warned that these shifts could make it harder for small startups to compete as traditional finance deepens its role in the sector.
