Digital Assets Report 2025
by AlbionVC
Posted
with Beauhurst
Building the next wave of UK digital
asset leadership
Over the past decade, the UK’s digital asset ecosystem has evolved from seed-stage experimentation to a globally relevant market, attracting institutional capital and producing category-defining companies. More than £2.7bn in equity capital has been raised across distinct growth phases, bringing the ecosystem to a pivotal juncture: how to consolidate its momentum and build durable, world-class companies that define the next decade.
At AlbionVC, we believe the foundations for this next chapter are firmly in place. The UK’s proven fintech track record and London’s status as a global financial hub provide a strong launchpad for digital asset leadership. Progress on regulation and institutional adoption is clear but maintaining competitiveness will require urgency to match international markets that have moved faster. The US’s GENIUS Act has established federal clarity for stablecoins, Europe’s MiCA framework has unified the bloc under a single digital asset regime, and Singapore’s Payment Services Act has created a trusted, institution-first model. Each of these frameworks has advanced legitimacy while narrowing space for unregulated actors. The FCA’s recent steps are encouraging, but acceleration is essential if the UK is to lead rather than follow.
Data points to a market undergoing structural maturation. Capital has become increasingly concentrated in established category leaders (top three companies raised a third of all capital with £895m), potentially leaving a gap at the early stages. Business models are shifting from consumer-facing apps to resilient B2B infrastructure, an area where the UK has already produced standout companies such as Copper (institutional grade custody), Elliptic (crypto compliance) and BVNK (stablecoin infrastructure). In 2025, investment in the sector has moved beyond Bitcoin price cycles, shifting towards utility, fundamentals, and credible use cases in areas such as stablecoins and decentralised finance, alongside growing engagement from financial institutions, governments and regulators.
Investor dynamics are evolving in parallel. The pullback of specialist US capital has been partially offset by domestic and European investors stepping up, while generalist funds are increasingly complementing the crypto-native investor base. The UK also benefits from a growing angel ecosystem, set to accelerate as liquidity events begin to seed a new generation of experienced operators turned angels. Although the exit environment remains less mature than in the United States, early M&A activity (25 exits to date in the UK), multiple $1bn+ exits across the Atlantic and a cohort of mature companies that should seek liquidity in the not too distant future, suggest that things are about to change —an essential development for recycling capital, talent and ambition.
Our own investment track record (four investments completed over the past 12 months), underscores our conviction in visionary UK founders who are bridging traditional finance and the crypto economy. Institutional-grade infrastructure and regulated use cases represent the most compelling opportunities ahead, areas where the UK already demonstrates global strength and is well placed to define the future of digital assets.
London has reinvented itself for centuries, from financing global trade to pioneering the Eurodollar market to dominating FX. Digital assets represent the next frontier in that legacy.
With 35% of UK adults now engaged with digital assets, the decision to participate has been made. The question is no longer if the UK will engage but how: will it lead, follow, or merely facilitate others’ leadership? Our analysis shows that with focused reform and continued momentum, the UK can win on the global stage.
The opportunity to shape global digital asset infrastructure exists today but will not remain open indefinitely. If you are building or thinking of building institutional infrastructure for digital assets, we would love to hear from you.
For a deeper look at the sector download the full Report or view the Digital Assets Market Map 2025.
In the photos below AlbionVC Partner Jay Wilson discussing live on CNBC the report findings.
“Investment flows no longer track Bitcoin, they track real-world use cases.”
Jay Wilson, Partner AlbionVC
