The current market cycle is characterized by substantial institutional interest in crypto. Companies around the world are stepping up their efforts to incorporate digital assets into their financial structures.
While Bitcoin (BTC) and Ethereum (ETH) remain key focuses, Fabian Dori, chief investment officer at Digital Asset Bank Sygnum, stressed that Altcoins, tied to the new Web3 ecosystem, could experience a growing demand. In an exclusive conversation with Beincrypto, Dori discussed the next wave of institutional adoption and where the market is heading.
Institutional benefits will move to altcoins: Solana (sol) and XRP (xrp) may lead the way
There have been significant changes in market dynamics since the previous year. A study conducted by Sygnum in November 2024 showed that 57% of institutions were intended to promote long-term crypto investments.
Additionally, 63% of those surveyed are expected to increase their crypto allocations within the next three to six months. This is the currently unfolding scenario. Beincrypto reports widely on how companies allocate millions of people to build the Crypto Treasury Ministry.
Bitcoin is leading the price, with at least 61 companies investing. Dori explained that interest in Bitcoin is largely due to its status as a valuable asset.
Furthermore, Ethereum’s domination in the smart contract space led it to the institutional spotlight. However, involvement is relatively less pronounced than Bitcoin involvement.
In addition to the top two cryptocurrencies, Dori highlighted Sol and XRP as the next assets on investors’ radar.
“Based on the asset flow of the scheme, complementary use cases and improved regulatory clarity has led to increased interest in Altcoins such as Sol and XRP,” he said.
The executive elaborated on how Solana stands out with its efficient blockchain and smart contract capabilities. In addition to that, there are decentralized exchanges such as Raydium, Orca, and Pump.fun, with cumulative trading volumes of nearly $1 trillion.
This makes SOL attractive to large investors and developers looking to build a scalable Defi platform and explore real-time use cases such as trading, paying, gaming and more.
He also noted that while XRP has long been used for cross-border payments, Ripple’s RLUSD Stablecoin has strengthened its position. It has gained popularity among financial institutions due to its low-cost transfer capabilities.
“The launch of CME’s XRP futures in 2025 and the potential ETF approvals for XRP and SOL show institutional preparations to move further on the risk curve,” Dori told Beincrypto.
Dori also pointed out that ChainLink’s Oracle services are essential for Defi and Smart Contracts to ensure reliable data feeds. Therefore, this makes you a potential candidate for institutional support.
“Unlike speculative tokens with little or no cases, altcoins exposed to the emerging Web3 ecosystem can see an increase in demand, particularly dominated by active communities, and backed by their actual utility,” he added.
He predicted that altcoins, which provide harvest production, will become increasingly popular, including allowing staking and stubcoins to support yields. In particular, Dori emphasized that this trend has already gained traction.
“This is one of the main areas of focus for institutional investors, and the best options available today include staking, liquid staking, redevelopment, tokenized finance ministry, obligation integration and arbitrary opportunities,” he said.
Dori cited Ecena’s USDE and Ondo Finance tokenized Treasury as an example of how it gained popularity among investors. He also noted that institutions are exploring staking services, decentralized lending, liquidity provisioning, and market production as alternative sources of yield.
Additionally, arbitrage strategies such as funding rates and base trade adjudication laws attract institutions who are familiar with market-neutral absolute return strategies.
What’s after Bitcoin? The next big trend in institutional cryptography
Meanwhile, speaking to beincrypto, Dori shared what comes next. He believes that institutional crypto adoption will expand beyond Spot Bitcoin and Ethereum.
“We see engagement with sophisticated derivatives, such as futures, options, permanent swaps, and other structured products that allow institutions to manage risk, implement sophisticated trading strategies, and gain exposure along with traditional investment workflows.
Additionally, he shared that tokenized real-world assets are gaining traction and are expected to become a key growth area. This includes tokenized real estate, goods and private credit.
These offer benefits such as fractionation, improved liquidity, opportunities for yield, and increased transparency in previously inaccessible markets.
“I will also anticipate an increase in engagement with Defi through a secure and compliant gateway, including permitted Defi platforms and facility-grade lending and borrowing services for various digital assets, enabling sophisticated financial management and yield generation,” Dori commented.
Finally, he mentioned Depin that aligns the incentives of actual services with the AI-Blockchain integration that attracts venture capital for use cases, broad appeal and scalability.
While increasing adoption benefits the sector overall, it raises questions about where traditional finance (TRADFI) fits all of this. According to Dori, banks will become the main bridge in crypto for institutional investors.
While native crypto players control retail and debt, banks offer regulatory compliance, facility-grade custody and seamless integration with TRADFI systems.
“Improvements to the US regulatory environment, including SEC’s Staff Accounting Breaking News 122, are likely to increase banks’ involvement in cryptographic services. SAB122 encourages banks to provide cryptographic services such as staking and lending, making them more competitive.
Dori believes that the bank’s infrastructure and the KYC framework will help institutions. This was demonstrated by the adoption of Visa and PayPal’s Stablecoins. He foresees the emergence of hybrid models. Here, banks can work with native platforms to increase access without the specialized knowledge needed to operate in the crypto space.
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