What will define institutional adoption in 2025? Interview with Bybit’s B2B chief

With institutional interest in cryptocurrencies soaring, the market is clearly entering a more mature phase – one defined less by speculation and increasingly by integration.

After a period of caution following high-profile market failures (FTX, Celsius, Luna, etc.), traditional players such as hedge funds, banks and asset managers have seemingly reevaluated their approach when it comes to cryptocurrency exposure.

In this interview, Yoyee Wang, the head of Bybit’s Business-to-business Unit (BBU), talks about how institutional participation is evolving, the renewed emphasis on trust and transparency, as well as the emerging collaboration between traditional finance and the digital asset sector.

Dive in and discover what further institutional engagement will shape as we approach the end of 2025.

Over the past year, institutional participation in crypto has evolved alongside changing macroeconomic conditions and regulatory clarity in key markets. How do you see institutional appetites and strategies changing in this new phase of the digital asset market?

We are definitely seeing growing institutional interest from two main directions. First, there are new entrants – including trading firms, hedge funds, asset managers and asset managers – looking to expand their offerings as their clients show increasing interest in crypto investments.

What’s even more interesting is the second group: institutions from the previous wave of adoption that had withdrawn after the collapse of the FTX. Many of them are now returning to the market or significantly increasing their exposure to crypto.

Trust and transparency remain critical to institutional adoption. How is Bybit’s B2B unit addressing these priorities, especially in areas such as custody, liquidity management and compliance infrastructure?

That’s a very good question. Custody is actually one of the main business activities of Bybit’s B2B unit. We’ve built deep integrations across a full range of custodial partners to meet our customers’ diverse preferences – from crypto-native custodians like Copper and Fireblocks to bank-backed solutions like UBS, Qatar National Bank and Sygnum Bank. We also work with hybrid providers like Zodia, who combine bank-grade security with the flexibility of crypto custody.

When it comes to liquidity management, we bring TradFi best practices to our clients, including features like cross-margining, leverage and near real-time settlement. This ensures that our customers not only have optimal access to Bybit’s trading liquidity, but also seamless access to the liquidity of their assets – regardless of where they are held or in what form – crypto, fiat or even T-bills.

And in terms of compliance, Bybit is fully committed to meeting and exceeding regulatory standards in all jurisdictions. We are licensed and registered in several key markets, reflecting our proactive approach to compliance and governance. These include approvals from the Securities and Commodities Authority (SCA) in the UAE, the MiCAR from the Austrian FMA and full registrations with the FIU in India.

We also implement robust AML and KYC frameworks, maintain transparent reporting and work closely with regulators and institutional partners to ensure our infrastructure remains secure, compliant and future-proof – giving institutions the confidence and assurance they expect from a top global platform.

Before joining Bybit, you have an extensive background in traditional banking and asset management. From your perspective, what are the most promising opportunities for collaboration between traditional financial and digital asset markets today?

I believe that any form of collaboration must create value for all parties involved. If we take a step back and ask ourselves, “What are the demands, needs, or challenges that traditional finance can solve for digital assets – and conversely, what can digital asset markets solve for traditional finance?” then the possible opportunities for cooperation become much clearer.

Tokenization is widely seen as the next step for blockchain adoption. What role do you see Bybit playing in facilitating or supporting RWA tokenization, and what are the key barriers that remain to be addressed for institutional scale?

We have already offered a comprehensive range of solutions designed to help RWA projects launch, scale and integrate, allowing them to expand use cases, build AUM and increase profitability.

The main barriers are similar to those facing broader cryptocurrency adoption. In some regions, regulatory clarity remains vague, making large-scale institutional participation difficult. In addition, liquidity and standardization of the underlying assets behind risk-weighted assets are still evolving, and these factors may limit the growth potential of projects and delay institutional adoption.

Bybit has positioned itself as a reliable partner for B2B and institutional customers. Can you talk more about how Bybit is developing its infrastructure – from APIs and liquidity solutions to risk management systems – to meet enterprise-level demands?

Our principle is simple and clear: we do our best to provide our clients with the most advanced trading features, tools and infrastructure whenever we can.

For Bybit institutional customers using a Unified Trading Account (UTA):
you can do the “GET wallet balance” RESTful endpoint or subscribe to the WebSocket wallet” subject to obtain the UTAs accountIMRate (Initial margin interest) and accountMMRate (Maintenance Margin) to control the risk level of the account.

API documentation:

Formula for initial margin percentage and maintenance margin percentage:

This document explains our UTA liquidation rules. Liquidation is triggered when the account’s Maintenance Margin Rate (MMR) reaches 100%.

As we look to 2025 and beyond, what do you think will define the next phase of institutional adoption – and how is Bybit’s B2B unit preparing to stay ahead of those shifts?

I believe the sign for the next phase of institutional adoption is when the focus shifts from merely owning or allocating crypto to integrating crypto as a more fundamental element within business models, operations and balance sheets. When we stop asking specific questions about crypto as the other side of traditional finance or as an alternative asset, and instead consider it simply as an asset.

The focus shifts from mere ownership or allocation of crypto and digital assets to their integration as fundamental elements within business models, operations, product lines and balance sheets.

Disclaimer: The content shared in this interview is for informational purposes only and does not constitute financial advice, investment recommendation or endorsement of any project, protocol or asset. The cryptocurrency space involves risk and volatility. Readers are encouraged to conduct their own research and consult qualified professionals before making any financial decisions. This interview was conducted in collaboration with Bybit, who generously shared their time and insights. The content has been mutually reviewed and approved for publication. Minor changes have been made for clarity and readability, while maintaining the content and tone of the original conversation.