Global Crypto Pivot: Banks, Stablecoins, Asia Lead the Charge

Elliptic Flags Global Crypto Pivot as Banks, Stablecoins and Asian Hubs Take the Lead

A global shift in crypto regulation is underway, with banks, stablecoins, and Asia’s financial hubs positioned to drive the next phase of policy development, according to Elliptic’s Global Crypto Regulation Review 2025, released Thursday.

Elliptic describes 2025 as a turning point as governments move away from primarily targeted enforcement and toward comprehensive legislative and supervisory frameworks designed to integrate digital assets into mainstream finance.

A central theme in the review is a changing posture in the United States. Elliptic points to a transition toward policies aimed at fostering innovation and allowing traditional financial institutions to access cryptoassets in a regulated way. Recent signals highlighted alongside the broader trend include a national U.S. bank regulator saying on Tuesday that banks will be allowed to act as intermediaries on crypto transactions, narrowing the gap between traditional finance and crypto activity.

Regulatory messaging is shifting in parallel. The SEC’s investor bulletin on best practices for crypto storage and custody is cited as reflecting a broader pivot following the 2024 U.S. presidential election and the appointment of Paul Atkins as SEC chair.

Elliptic also finds that stablecoins have become the dominant use case driving adoption globally, with regimes for stablecoins maturing across multiple jurisdictions, including the EU, the United Kingdom, Hong Kong, and South Korea. The review frames stablecoins as tools increasingly used for cross-border payments, as workarounds where legacy banking is slow or inaccessible, and as gateways to on-chain financial services.

One consequence of clearer rules and growing usage is expected expansion of regulated crypto payroll. Elliptic highlights two main contexts:

• Global hubs such as the UAE, the U.S., Singapore, and Hong Kong, where legal clarity and fintech infrastructure support on-chain salaries for domestic and international employees.
• Emerging economies with large remote workforces and strong stablecoin demand, including the Philippines, Kenya, and Brazil, where on-chain payroll can serve as a compliant alternative to slow correspondent banking while aligning with local labor and tax rules.

Asia-Pacific and the Middle East are positioned as key arenas for the next stage of regulatory competition. Elliptic highlights the United Arab Emirates as a regional hub for tokenization pilots and settlement systems, describing it as a bridge between Asia, Europe, and Africa in tokenized finance. The review links that momentum to Dubai’s VARA policy framework, remittance-driven grassroots usage, and high levels of user penetration.

Other financial centers, including Singapore, Hong Kong, and the UAE, are described as crafting regimes designed to attract institutional stablecoin issuers. The review also notes that certain cities are aiming to combine Western and Asian financial structures, with stablecoins and tokenisation acting as catalysts for financial modernization.

Banks feature prominently in the shift. Elliptic argues that traditional institutions are increasingly moving from caution to participation, enabled by clearer rules in major jurisdictions. The review says that in regions with innovation-friendly regulation—such as the U.S., the EU, and parts of Asia—more than 80% of financial institutions announced digital asset initiatives in 2025. It also points to banking-led integrations that simplify access while maintaining compliance, including platforms such as Hexarq from BPCE.

At the same time, the review emphasizes that stablecoin growth places greater importance on reserve transparency and credible attestations, noting that some issuers provide limited disclosure or rely on riskier backing. It points to institutional adoption—such as banks supporting USDC accounts and payment providers like Stripe integrating stablecoins—as a practical signal of growing trust.

The broader context is that regulation is diverging by jurisdiction even as overall frameworks become more formalized. Elliptic characterizes South Korea’s measures as stringent and stability-focused, while highlighting bank-driven innovation in Europe. It also points to areas where policy delays can create uneven progress, including references to Poland’s blocked bill alongside EU-wide developments.

Elliptic’s review also situates stablecoin expansion within consumer protection debates. Concerns raised by critics include the risk that stablecoins could be introduced through payment platforms in ways users do not fully understand, and that such transactions may not always include familiar protections like chargebacks and fraud remedies.