Polygon Executive Explains Why Big Finance Wants Crypto in 2025 and Why Retail Doesn’t
A Polygon executive explains that institutional investors now dominate crypto inflows due to improved infrastructure and yield opportunities, while retail participation has declined.Summary
In 2025, the cryptocurrency market is experiencing a significant shift with institutional investors now accounting for approximately 95% of inflows, a reversal from previous retail-driven cycles. Aishwary Gupta, global head of Payments and Real-World Assets at Polygon Labs, attributes this change to the development of infrastructure, such as Polygon, that supports institutional activity and provides scalability and low-cost transactions. Institutions are drawn to crypto for both yield and diversification, as well as operational efficiencies like faster settlement and tokenized fund structures.
The decline in retail participation is linked to losses from speculative investments, particularly meme coins, leading to a loss of trust. However, Gupta believes that structured and regulated products can restore retail confidence. He argues that institutional adoption doesn’t necessarily threaten crypto’s decentralization, but rather legitimizes it, especially when built on public, open networks.
Looking ahead, Gupta anticipates continued growth in real-world asset tokenization, increased market stability, and stronger regulatory integration. He expects a shift from speculative trading to long-term yield generation, with interoperability becoming a key focus as institutions scale their on-chain activities.
(Source：BeInCrypto)