Blockchain 2025: Strategic Reserves, Real-World Uses - A Macro-to-Micro Perspective
Blockchain 2025: Strategic Reserves, Real-World Uses - A Macro-to-Micro Perspective
At Blockchain Coinvestors, we’ve spent over a decade cultivating the most extensive early-stage portfolio in the blockchain industry—investing in more than 1,250 companies across every corner of the crypto ecosystem, including over 110 blockchain unicorns. Our mission is simple yet ambitious: to provide our investors with exposure to the entire blockchain economy and to accelerate the arrival of a digitally native financial world.
As we enter Q2 2025, one question dominates boardrooms, capital allocators, and policy circles alike: “Is blockchain now central to global economic strategy?”
In this special edition, we unpack that question from a macro-to-micro perspective—starting with the Trump administration’s second-term economic policies and ending with recap of the real world assets (RQA) discussion during our recent flagship event, BlockTalk 2025.
Macro Realignment: Strategic Reserves in the Trump Era
"Everything is on the table with Bitcoin." — Secretary of the Treasury, Scott Bessent
On January 21, 2025, Donald Trump began his second term as U.S. President. Since then Trump’s administration has since launched the most aggressive pro-crypto policy agenda in U.S. history, including:
A ban on U.S. CBDCs
A directive to explore a federal Bitcoin reserve
Deregulatory appointments at the SEC (Paul Atkins) and Treasury (Scott Bessent)
The repeal of SAB 121 to unlock bank participation in crypto custody
A push for stablecoins to be used in Treasury markets
This policy momentum builds on a deeper macro thesis: Bitcoin is evolving from a speculative asset to a strategic reserve instrument.
In March 2025, the International Monetary Fund officially recognized Bitcoin (BTC) as a legitimate foreign reserve asset in its Balance of Payments and International Investment Position Manual (BPM7). For the first time, central banks are now required to report BTC holdings alongside their gold, oil, and foreign currency reserves. This marks a tectonic shift in the architecture of global monetary trust.
Historically, the U.S. Strategic Petroleum Reserve (SPR) and its 8,133 tonnes of gold have been the backbone of America’s economic sovereignty. But such reserves are increasingly limited by physical constraints, international politics, and climate-driven energy transitions.
By contrast, Bitcoin offers:
Digital scarcity (21 million hard cap)
Geopolitical neutrality
Decentralized consensus
Global auditability (transparency)
If the U.S. were to accumulate 1 million BTC by 2029 and BTC appreciates at a CAGR of 25%, Bitcoin could cover 35.5% of the U.S. national debt by 2049.
This isn't just about portfolio diversification anymore. It’s about monetary positioning in a multipolar world, where trust in fiat is declining and programmable reserves are in ascendancy.
Liquidity as Policy: Stablecoins & Tokenized Treasuries
The U.S. economy in 2025 faces a dual challenge: exploding national debt and decelerating foreign demand for Treasuries. Other than Bitcoin reserves, The Trump administration is confronting this by reaching for a crypto-native tool—stablecoins—to reinvent sovereign debt absorption mechanisms.
The numbers are stark:
S. Treasury market: $36 trillion and growing
2024 net issuance: $26.7 trillion (+28.5% YoY)
2025 maturities: $3 trillion, mostly short-term
Growth rate of foreign central bank holdings: just 11%
Countries like China and Japan, once top holders, are reducing their exposure. China’s holdings fell to $772 billion September 2024. Japan, the largest foreign holder, reduced its holdings by $5.9 billion to $1.12 trillion during the same month.
The fast growth of debt, along with falling foreign demand, creates two big challenges for the Treasury market, making it likely that risk premiums will rise. If the market can’t handle this debt well, it could lead to serious financial problems.
The crypto market might offer new and creative ways to help manage this debt.
An underappreciated macro story of 2025 is evolving: Stablecoins are becoming the invisible buyers of U.S. debt.
Stablecoins, such as Tether (USDT) and USD Coin (USDC), are at the forefront of a financial revolution. Over 60% of on-chain activity now involves these stablecoins, which are collateralized 1:1 with short-term U.S. Treasuries. Together, they hold over $140 billion in Treasuries, absorbing approximately 3% of maturing short-term issuance. This places stablecoins among the top 10 global holders of U.S. Treasuries, ahead of sovereign nations like Germany and Mexico.
A Synthetic Foreign Buyer Class
This growing influence positions stablecoins as a synthetic foreign buyer class, effectively absorbing U.S. debt while exporting inflation—a continuation of the U.S. dollar’s role as the global reserve currency. With the stablecoin market cap already at $210 billion (as of January 2025) and projected to exceed $400 billion by year-end, OKG Research estimates this could translate to over $100 billion in new Treasury demand. Bitwise analysts further predict that stablecoins’ Treasury exposure could soon reach 15%.
Stablecoins’ reliance on U.S. Treasuries for collateral not only stabilizes their value but also transforms them into a critical mechanism for absorbing U.S. debt. For instance, Tether alone holds over $113 billion in U.S. Treasuries—more than the holdings of major G7 economies like Germany. This demonstrates how stablecoins act as a bridge for global liquidity, providing non-U.S. markets access to dollar-denominated assets without the need for traditional banking systems.
Geopolitical Implications and the Future of Stablecoins
Stablecoins’ absorption of U.S. Treasuries is reshaping global financial and geopolitical dynamics. While governments like China reduce their reserves of U.S. debt, individuals in such countries are turning to stablecoins to access U.S. dollar assets. This bottom-up demand underscores stablecoins’ role as a bridge to dollar liquidity in regions with restricted access to traditional banking.
Hong Kong’s Role in Tokenization
A Strategic Leader in Real World Asset (RWA) Tokenization
Hong Kong has taken bold steps to establish itself as a global leader in the tokenization wave. The city has introduced pivotal initiatives like the Digital Bond Grant Scheme to incentivize capital markets to adopt tokenization technology. Additionally, the 2024 Policy Address outlined Hong Kong’s commitment to promoting RWA tokenization and fostering a robust digital currency ecosystem.
The city’s regulatory sandbox allows financial institutions to pilot innovative tokenization projects while maintaining compliance. These efforts reflect Hong Kong’s ambition to reshape its financial competitiveness and secure a strategic edge in the global tokenization market, which is projected to reach HK$36 trillion over the next decade, according to Boston Consulting Group.
Challenges in the RWA Market in Hong Kong
Despite its promising outlook, the RWA tokenization market in Hong Kong is not without challenges. Traditional financial institutions in the city remain cautious, largely adopting a "wait-and-see" approach due to compliance concerns and the complexity of integrating blockchain into existing systems. This hesitancy limits the pace of adoption and prevents Hong Kong from fully leveraging its financial resources for tokenization innovation.
Other significant hurdles include:
Lack of Interoperability: Ensuring compatibility between different blockchain networks and legacy financial systems remains a technical and logistical challenge.
Regulatory Uncertainty: While Hong Kong’s regulatory environment is progressive, global inconsistencies in digital asset regulations create barriers for cross-border tokenization initiatives.
Evolving Roles of Intermediaries: The shift toward decentralized finance and blockchain-based systems disrupts traditional financial roles, creating friction among stakeholders.
Data Standardization and Infrastructure: Establishing widely accepted standards for tokenized assets and improving blockchain infrastructure are essential for scaling the market.
To address these challenges, Hong Kong must foster greater institutional participation, improve technological infrastructure, and provide clearer regulatory guidance to build confidence in the tokenization ecosystem.
Scaling the RWA Market learning from the U.S
As highlighted earlier, the U.S. is leveraging stablecoins and tokenized treasuries to address its debt challenges. Similarly, Hong Kong has an opportunity to align with this trend by fostering the growth of tokenized financial instruments. Public blockchains are emerging as a preferred platform for tokenized bonds and funds, offering superior global liquidity and transparency.
Currently, over 60% of tokenized bonds and funds are issued on public blockchains, demonstrating their ability to enhance asset tracking and compliance. By capitalizing on these advantages, Hong Kong can position itself as a leader in creating a globally accessible and compliant tokenized asset market.
To scale its RWA market, Hong Kong should prioritize the tokenization of standardized financial assets such as bonds and funds, as these offer stable returns and large market sizes. This focus will allow Hong Kong to rapidly expand its tokenized asset market while building the expertise required for more complex asset classes.
Hong Kong also needs to utilize the policy advantages to promote institutional adoption. U.S. institutions like BlackRock and JPMorgan have led tokenization efforts by prioritizing regulatory compliance. Hong Kong can replicate this success by fostering institutional confidence through clear regulatory frameworks and compliance-focused sandbox environments.
From Macro to Micro: How can investor participate - BlockTalk 2025 Recap
In March, BlockTalk 2025, Blockchain Coinvestors’ flagship virtual event, convened the world’s leading allocators, builders, and thought leaders in blockchain to explore the transformative role of real world assets (RWAs) and tokenized Treasuries in reshaping global finance. Among the prominent participants was Graham Rodford, CEO of Archax, who offered valuable insights into the role of blockchain technology in democratizing access to financial instruments, enhancing liquidity, and fostering innovation across both traditional and decentralized finance (DeFi) ecosystems.
The Role of Tokenized Treasuries in RWA Integration
One of the key discussions at BlockTalk 2025 centered on the integration of RWAs into blockchain ecosystems, with tokenized U.S. Treasuries emerging as a foundational asset class. Tokenized Treasuries are revolutionizing global markets by bridging the gap between traditional finance and DeFi. Companies like Securitize are at the forefront of this transformation, enabling Treasuries to be digitized and accessible in fractional amounts. This approach makes these low-risk, yield-generating assets available to a much broader audience, including retail investors in regions with limited access to U.S. dollar banking systems.
Supporting Stablecoins and Easing Debt Pressures
Tokenized Treasuries are also indispensable to the stablecoin ecosystem. Stablecoins like USDT and USDC, which use U.S. Treasuries as collateral, depend on these assets for stability and liquidity. With over $140 billion in Treasuries already absorbed by stablecoins—and further growth expected—platforms like Archax play an essential role in ensuring the seamless integration of tokenized Treasuries into this digital economy.
Beyond their role as collateral, tokenized Treasuries offer low-risk yield generation for DeFi participants. Funds such as Ondo’s tokenized short-term Treasury fund (OUSG) provide yields of up to 5.5%, offering an attractive option for investors seeking stability and returns. Furthermore, tokenized Treasuries attract institutional capital, bringing legitimacy to the DeFi space and accelerating its growth.
By enabling seamless cross-border and cross-chain transactions, tokenized Treasuries break down traditional financial barriers, globalizing access while addressing U.S. debt pressures. These digitized assets are becoming a key tool for enhancing global liquidity and reshaping financial markets.
A Transformative Future for RWAs and Financial Markets
The rapid adoption of tokenized Treasuries underscores the potential of blockchain-based financial innovation. As reported by RWA.xyz, the market for tokenized Treasuries expanded from $769 million at the beginning of 2024 to $3.4 billion in early 2025—a fourfold increase in just one year. This remarkable growth reflects the scalability and market recognition of Treasuries as a cornerstone of global finance.
As tokenized Treasuries continue to gain traction, they are laying the groundwork for the broader tokenization of other RWAs, including real estate, commodities, and corporate bonds.
The ability to tokenize Treasuries enables new levels of accessibility, transparency, and liquidity. By breaking down geographical and financial barriers, these innovations pave the way for a more inclusive global financial system. With rising short-term Treasury yields anticipated in 2025, the migration of Treasuries on-chain is likely to accelerate, creating new opportunities for investors while reshaping wealth management strategies.
Conclusion
The rapid adoption of tokenized Treasuries showcases the scalability and market potential of blockchain-based financial innovation. As these assets gain traction, they are paving the way for the broader tokenization of real-world assets (RWAs), such as real estate, commodities, and corporate bonds. This evolution is not merely about digitizing existing markets but about rebuilding a financial system that is more secure, efficient, inclusive, and decentralized.
The developments in tokenized Treasuries and blockchain-based financial innovation are of immense importance to Asia. Countries like Hong Kong and Singapore are well-positioned to act as gateways for global capital, connecting Western financial innovations with the rapidly growing economies of Asia. Tokenized Treasuries present a unique opportunity for Asian investors to access U.S. dollar-denominated assets seamlessly, while stablecoins facilitate cross-border trade and payments critical to the region’s economies.
Furthermore, as Asia increasingly emphasizes regulatory clarity and innovation, blockchain presents a pathway to enhance financial inclusion, particularly for the unbanked populations in emerging markets. The acceleration of blockchain adoption in the U.S. will undoubtedly have a ripple effect, strengthening Asia’s role as a leader in shaping the infrastructure of the next-generation global financial system.
Blockchain Coinvestors’ investment thesis focuses on supporting the infrastructure, platforms, and applications driving blockchain’s evolution toward a trustless and programmable financial system. By enhancing transparency, liquidity, and accessibility, blockchain is breaking barriers, democratizing access, and creating new opportunities for investors, positioning itself as the cornerstone of the next-generation financial ecosystem.
For more information about our investment strategies, please reach out to our team at ir@BlockchainCoinvestors.com.
Thank you for reading.
Joy Cai
Hong Kong
About Blockchain Coinvestors
Blockchain Coinvestors invests in blockchain businesses. Our vision is that digital monies, commodities, and assets are inevitable and all of the world’s financial infrastructure must be upgraded. Our mission is to provide broad coverage of early stage blockchain investments and access to emerging blockchain unicorns. Blockchain Coinvestors’ investment strategies are now in their 12th year and to date we have invested in a combined portfolio of 1,250 blockchain companies and projects including more than 110 blockchain unicorns. Visit us at www.BlockchainCoinvestors.com to learn more.
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