Bitcoin’s growing institutional adoption and rising digital asset treasuries are positioning a potential Bitcoin takeover of financial infrastructure, as industry leaders say banks and fintechs will embed crypto rails into payments and settlements, accelerating tokenized assets and stablecoin flows across TradFi.
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Institutional inflows and digital asset treasuries (DATs) are concentrating capital in first movers, strengthening Bitcoin and top-layer tokens on corporate balance sheets.
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DeFi infrastructure — notably Aave — now exceeds $70 billion in net deposits, signaling real-world integration opportunities for traditional finance.
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Ethereum-based rails and Layer 2s are cited as primary builders for tokenization, while stablecoins and on-ramps are driving payment rail adoption.
Bitcoin takeover of financial infrastructure: Expert-led Token2049 LONGITUDE coverage explains institutional DATs, DeFi rails, and how TradFi can integrate crypto — read insights and next steps.
Will Bitcoin take over financial infrastructure?
Bitcoin takeover of financial infrastructure is increasingly discussed as institutions and fintechs explore embedding crypto rails for payments, settlements and treasury exposure. Industry leaders at Token2049’s LONGITUDE event argued that concentrated DATs, stablecoin flows, and DeFi primitives make integration plausible, though timelines and market structure will determine the extent of adoption.
How will digital asset treasuries (DATs) change corporate balance sheets?
Digital asset treasuries (DATs) place cryptocurrencies directly on corporate balance sheets as strategic or operational reserves. At LONGITUDE, panelists noted DATs are likely to concentrate among early entrants and large issuers, with benefits including diversified asset exposure and potential upside from token appreciation. Reported fundraising examples include BNC’s BNB treasury program raising $500 million, highlighting how large capital pools can be allocated to token-based assets. Companies weighing DATs assess liquidity, custody, regulatory treatment and accounting standards before adoption.
Cointelegraph’s Gareth Jenkinson in conversation with Arthur Hayes.
Key industry perspectives from LONGITUDE, Token2049
The LONGITUDE program — co-hosted at Token2049 in Singapore — convened leading figures to discuss the near-term and structural implications of crypto for finance. Notable viewpoints included:
- Arthur Hayes (Maelstrom): Presented a macro-driven thesis forecasting dramatic Bitcoin upside and argued that monetary expansion and capital seeking real assets could drive concentrated allocations into BTC and larger DATs. Hayes emphasized that token projects with durable cash flow models and buyback-like mechanisms could outperform in the next altseason.
- Joseph Lubin (Consensys): Focused on Ethereum and Layer 2 ecosystems as foundational infrastructure for a tokenized economy, noting that enterprise adopters and settlement rails can be built using Ethereum development tools. He referenced institutional interest in Ethereum-based tooling for payment and settlement modernization.
- Stani Kulechov (Aave Labs): Framed DeFi as an infrastructure layer rather than an end-user product, reporting that Aave’s net deposits have eclipsed $70 billion — a scale comparable to a top-40 US bank — illustrating the depth of liquidity available for integration by fintechs.
What role will stablecoins and on-ramps play?
Stablecoins and regulated on-ramps are repeatedly cited as the practical bridge between legacy systems and tokenized rails. Payment processors and BaaS providers at the event described client demand for fiat-to-crypto rails and stablecoin settlement to reduce friction in cross-border payments. Industry participants emphasized operational factors — compliance, treasury management, and custodial controls — as prerequisites for broader uptake.
SharpLink Gaming CEO Joseph Chalom.
Frequently Asked Questions
How likely is it that banks will hold Bitcoin on their balance sheets by 2026?
Bank adoption depends on regulatory clarity, accounting treatment and custody solutions. Several public and private firms have already piloted digital asset treasuries; wider adoption by regulated banks will accelerate if standardized frameworks for custody and reporting are established. Current signals show increased pilot activity but not universal adoption.
What does “Will Bitcoin take over financial infrastructure?” mean in plain language?
It asks whether Bitcoin and crypto rails will become core parts of payment, settlement and treasury systems used by banks and fintechs. Experts at LONGITUDE described a path where tokenized assets, stablecoins and DeFi plumbing are embedded into existing services to improve speed, reduce costs and enable new financial products.
Joe Lubin, left, and Neal Stephenson at LONGITUDE in Singapore.
Key Takeaways
- Institutional concentration: DATs are expected to concentrate capital among early and large issuers — firms must evaluate liquidity and governance before allocating.
- DeFi as infrastructure: Aave and similar protocols provide scalable liquidity pools; reported net deposits of over $70 billion underscore institutional-scale capacity.
- Practical bridge: Stablecoins, regulated on-ramps and enterprise-grade tools (e.g., Ethereum-based development stacks) are the practical enablers for TradFi integration.
Conclusion
Token2049’s LONGITUDE sessions made clear that a potential Bitcoin takeover of financial infrastructure is less a single event and more a multi-year evolution driven by DAT adoption, stablecoin rails and DeFi plumbing. Industry leaders — including Arthur Hayes, Joseph Lubin and Stani Kulechov — outlined tangible steps and metrics that market participants can monitor, such as treasury allocations, deposit pools and enterprise integration pilots. Published: Oct 13, 2025. Updated: Oct 13, 2025. Author: COINOTAG.
