Digital assets enter institutional era after speculation, infrastructure: Luno chief

The global digital asset industry has entered an era of institutionalization, according to Luno CEO James Lanigan. The industry has moved through three eras: speculation, infrastructure, and now institutionalization. During the speculation era in 2009-2017, Bitcoin was the only digital asset, and the market was dominated by retail investors.

The infrastructure era from 2018-2022 saw the development of regulation, custody, and institutional infrastructure. The institutionalization era began in 2023, accelerated by the approval of Bitcoin ETFs in January 2024, which brought major financial institutions like BlackRock and Fidelity into the market. This era is characterized by billions of dollars flowing on-chain daily and rapid regulation growth, particularly influenced by the US.

The market remains early in tokenization, with about US$350 billion of tokenized real-world asset value currently tracked on-chain. Stablecoins are the largest component of the tokenized market, accounting for about 90% of on-chain value. Most stablecoins are US dollar-denominated, which represents a significant growth opportunity for non-US dollar stablecoins.

Regulation has shifted from a threat to a structural tailwind, with institutions seeking clarity before entering the market. Malaysia is not late to the digital asset industry but is early in its institutionalization, particularly in on-chain settlement, investment, liquidity, and local-currency stablecoin innovation. The combination of institutional participation, regulatory clarity, and local-currency infrastructure will shape the next phase of digital asset development in Malaysia.