DIGITAL ASSETS

Perhaps most significantly, MEVfree order flow enabled by time-lock encryption addresses long-standing concerns about sandwich attacks and front-running, delivering tighter spreads for retail users whilst reducing slippage for institutional clients.

These developments occur alongside broader market structure evolution. Bernstein forecasts stablecoin market capitalisation to expand 2.5 times through 2025, driven primarily by businessto-business payments and crossborder transactions.

The firm anticipates clearer cryptocurrency securities classification will enable platforms to tokenise traditional stock market assets, further blurring the boundaries between traditional and digital finance.

The integration of AI within cryptocurrency systems adds another layer of complexity.

The EU AI Act introduces specific compliance requirements for finance teams, particularly around transparency and documentation in AI systems for payments and fraud detection, creating new operational challenges that successful exchanges must navigate. fintechmagazine. com 77