The Web3 landscape in June 2025 was shaped by a confluence of macroeconomic shifts, regulatory advancements, and accelerating institutional adoption. While geopolitical tensions briefly rattled markets, the broader narrative remained focused on structural growth, policy evolution, and real-world asset (RWA) tokenization. This report unpacks the key developments across markets, policy, investment trends, and applications that defined the month.
Market Dynamics: From Geopolitical Jitters to Monetary Policy Focus
Geopolitical conflict, particularly in the Strait of Hormuz, dominated early June headlines, replacing trade tariffs as the primary market driver. Heightened risk aversion briefly pushed Bitcoin below the $100,000 mark. However, with the conflict proving short-lived and sentiment remaining relatively contained, volatility was manageable. By month-end, a ceasefire announcement triggered a swift market rebound, refocusing investor attention on central bank policy.
The Federal Reserve’s stance has become increasingly pivotal. While a July rate cut now appears unlikely globally, the Fed’s pivot toward a more dovish tone has rekindled expectations for rate reductions in the second half of 2025. This evolving monetary backdrop continues to support risk assets, including digital currencies.
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Regulatory Momentum: Stablecoins Take Center Stage
Regulatory clarity emerged as a major catalyst this month. The U.S. Senate’s passage of the "Stablecoin Innovation and Trust Act" — widely dubbed the "Genius Bill" — marked a watershed moment for the industry. The legislation provides a federal framework for stablecoin issuance, addressing long-standing concerns around transparency and reserve management.
This development turbocharged global interest in stablecoin initiatives. Major financial institutions and tech giants are now racing to launch regulated stablecoins, aiming to capture first-mover advantages in payments, remittances, and DeFi integration. The momentum is particularly strong in Hong Kong, where the government released its Hong Kong Digital Assets Development Policy Declaration 2.0, reaffirming its ambition to become a global hub for digital asset innovation.
Domestically, mainland China has shifted from broad blockchain infrastructure policies to targeted applications. As of June 2025, only 23 blockchain-related policies were issued nationwide — a 61.66% decline year-on-year. This reflects maturation: foundational systems are now robust enough to support specialized use cases in finance, supply chain, and data governance. Shanghai led regional activity, accounting for 73% of local blockchain policies, signaling a concentrated push for fintech innovation.
Investment Trends: Capital Flows Surge into Digital Assets
The first half of 2025 witnessed unprecedented capital inflows into the blockchain sector. Globally, there were 478 funding events, totaling $108.7 billion — nearing the full-year 2022 peak despite being just six months in. This surge underscores strong investor confidence, particularly in compliant projects.
Digital currencies dominated fundraising, capturing 72.8% ($79.2 billion) of total investment — a dramatic increase from 36.9% in 2024. This shift indicates growing institutional appetite for crypto-native assets amid clearer regulations.
Meanwhile, blockchain infrastructure funding dropped to 9.6%, while industry applications secured 10.9%. Although application-focused projects led in event volume (196 deals), infrastructure deals commanded higher average valuations due to their technical complexity and scalability potential.
Real-World Assets (RWA): Institutional Adoption Gains Traction
RWA tokenization emerged as one of the most transformative trends of June. With native crypto liquidity cooling, traditional finance players are increasingly turning to blockchain to digitize tangible assets.
As of June 30, the global RWA market (excluding stablecoins) reached $24.4 billion, up 55.6% from年初. There are now 196 issuers and over 222,300 asset holders, signaling broadening participation.
Asset concentration remains high:
- Private credit: $14.3B (58.5%)
- U.S. Treasuries: $7.4B (30.3%)
Together, these two categories account for nearly 90% of all tokenized assets.
Commodities and institutional funds lag behind at $1.6B and $540M respectively.
Ethereum leads as the dominant RWA platform, hosting 58.7% of tokenized assets ($7.5B), thanks to its developer ecosystem and security track record.
Despite progress, challenges persist: issuance is still largely controlled by large institutions, onboarding is complex, and secondary market liquidity remains limited.
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Digital Yuan Advances: Strategic Push for Global Reach
China accelerated its digital currency strategy in June. People’s Bank of China (PBOC) Governor Pan Gongsheng announced the establishment of a Digital RMB International Operations Center in Shanghai, aimed at expanding cross-border use and integrating with financial markets.
Simultaneously, Shenzhen received guidance to deepen innovation in Digital RMB use cases and advance research within the m-CBDC Bridge project — a multilateral initiative exploring cross-border CBDC settlements.
These moves signal a strategic pivot: the Digital Yuan is no longer just a retail payment tool but is being positioned as critical infrastructure for RMB internationalization. With private-sector stablecoins like those from Ant Group and JD.com gaining traction in Hong Kong, China is responding proactively to maintain monetary sovereignty and competitiveness in global payments.
This dual-track approach — public digital currency backed by policy vs. private stablecoins driven by market forces — creates a dynamic competitive landscape that could redefine cross-border finance.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin’s price drop in early June?
A: Escalating tensions in the Strait of Hormuz triggered risk-off behavior, briefly pushing BTC below $100K. The dip was short-lived due to limited conflict duration and strong underlying fundamentals.
Q: Why did stablecoin legislation pass now?
A: After years of regulatory uncertainty, U.S. lawmakers recognized the need for a clear framework to protect consumers and foster innovation, especially as global stablecoin adoption accelerates.
Q: Is RWA tokenization only for big institutions?
A: Currently yes — due to compliance requirements and high entry barriers — but protocols are emerging to democratize access through fractional ownership models.
Q: How does the Digital Yuan compete with private stablecoins?
A: The Digital Yuan offers state-backed stability and seamless integration with China’s financial system, while private stablecoins provide flexibility and innovation — both play complementary roles in digital finance.
Q: Will blockchain policy continue declining in China?
A: Likely — the shift reflects maturity. Instead of broad directives, focus is now on vertical applications in finance, logistics, and data exchange where blockchain adds measurable value.
Q: Where is most Web3 investment going in 2025?
A: Over 70% is flowing into digital currencies, especially regulated stablecoins and tokenized assets, reflecting institutional confidence in compliant crypto products.
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Conclusion
June 2025 underscored a pivotal transition in Web3: from speculative cycles to structural growth driven by regulation, institutional capital, and real-world utility. Stablecoin clarity, RWA expansion, and strategic digital currency moves highlight an industry maturing under scrutiny — not despite it. As markets stabilize and use cases solidify, the foundation is being laid for sustainable innovation across finance and beyond.