J Deep Research Report: Token Future Development and Future Trends

Executive summary

• The token landscape in 2025 is maturing along three parallel tracks: real‑world asset tokenization, scalability via Layer‑2 and modular architectures, and new utility from AI‑native token ecosystems. Regulatory clarity — especially in the EU and potentially the U.S. for stablecoins — and persistent security risks will be the major determinants of token issuance models and market flows over the next 12–36 months. (pwc.com)

1. Market context and macro drivers

• Institutional products, macro liquidity, and regulatory milestones continue to shape demand for tokens. Products that lower the friction for institutional entry (custody, compliant stablecoins, tokenized securities) will direct meaningful capital into token markets when paired with clear legal frameworks. Recent developments in crypto market structure and ETF conversations remain important tailwinds for token liquidity. (coin360.com)

2. Tokenization of real‑world assets (RWA): from pilots to production

• What’s changing: Tokenization has shifted from proofs‑of‑concept to production deployments in treasury flows, private credit, and fractionalized securities. Institutions emphasize custody, legal wrappers, and operational integrations more than pure technology novelty. (pwc.com)
• Why it matters: Tokenized assets can improve settlement speed, enable fractional ownership, and broaden investor access to previously illiquid pools (private equity, private credit, real estate). Properly structured tokens can also serve as programmable collateral inside DeFi primitives. (pwc.com)
• Adoption risk checklist for issuers: robust custody and trustee models; clear legal title and transfer mechanics across jurisdictions; audited reserve and redemption mechanisms (for asset‑backed tokens); and interoperability standards for settlement rails. (pwc.com)

3. Scalability and composability: Layer‑2 and modular stacks

• State of play: Layer‑2 networks (optimistic and ZK rollups, plus sidechains) reached significant TVL and activity gains in 2025 after protocol and data‑availability improvements on Ethereum and other base layers. Builders are increasingly deploying RWA and high‑frequency dApps on L2 rails. (l2beat.com)
• Technical implications for token projects: choose execution layer based on threat model — tokens intended for high throughput, micro‑transactions, or complex on‑chain commerce benefit from ZK rollups and L2 ecosystems with mature bridges and fraud proofs; token standards should be portable across rollups. (l2beat.com)
• UX and adoption drivers: account abstraction, paymaster services (gas abstractions), and native wallet experiences are lowering onboarding friction — critical for consumer‑facing token utilities. (bestla.vc)

4. Tokenomics evolution and use cases

• Native utility is evolving from simple governance or fee‑capture to multi‑layer roles: collateral, staking for service guarantees, on‑chain reputation, and usage‑based payments for decentralized compute/AI markets. Economies that mix token incentives with real economic utility (revenue share, rebates, access) show stronger organic demand. (coindesk.com)
• AI + tokens: decentralized AI compute, model markets, and data marketplaces increasingly use tokens for coordination and incentive alignment. These models are experimental and high‑beta, so token issuance must be cautious about supply schedules and governance design to avoid speculative front‑running. (coindesk.com)

5. Regulation outlook — a critical shaping force

• European Union (MiCA/DORA): The EU completed many delegated/implementing standards for MiCA and DORA in 2024–2025; MiCA’s full application dates and accompanying technical standards materially change stablecoin and service‑provider rules inside the Single Market. Projects targeting EU users must meet disclosure, prudential and market‑abuse requirements. (finance.ec.europa.eu)
• United States: Stablecoin rulemaking was a top legislative focus in 2025 with multiple bills and CRS analyses circulating; proposals typically require full‑reserve or tightly defined permitted reserves, enhanced reporting and supervisory regimes, and licensing pathways for issuers. Pending U.S. laws could change the competitive landscape for dollar‑pegged tokens and cross‑border stablecoin usage. (congress.gov)
• Practical takeaway: token projects and issuers should embed regulatory compliance into product design (reserve transparency, redemption mechanics, AML/KYC workflows) rather than attempt retroactive fixes. (finance.ec.europa.eu)

6. Security and custody: why custody strategy matters now

• Threat environment: 2024–2025 saw increasing volumes of stolen funds and sophisticated attacks targeting both services and individual wallets; private‑key compromises and large service breaches remained dominant drivers of losses. This elevates custody choices and user‑key hygiene to first‑order concerns for token holders and issuers. (chainalysis.com)
• Best practices: use hardware or air‑gapped signing for long‑term holdings, adopt multi‑signature for treasury operations, keep firmware and signing software up to date, segregate hot and cold funds, and maintain tested recovery processes and secure seed storage. These measures materially reduce risk from phishing, malware and insider threats. (academy.binance.com)

7. Price outlook and near‑term market drivers

• Demand side: token demand will be driven by adoption in payments, DeFi primitives with real yields, RWA inflows, and AI compute marketplaces. Regulatory clarity and institutional products (custody + compliant issuance) will unlock sizeable pools of capital when available. (pwc.com)
• Supply and risk side: token issuance that lacks legal clarity or transparent economics faces de‑risking flows when policy signals change; security incidents cause rapid re‑pricing and sustained confidence loss for the impacted token and category. Expect volatility around major regulatory announcements and high‑profile hacks. (chainalysis.com)

8. Actions for token projects and holders (practical checklist)

• For projects issuing tokens:
  • Build regulatory‑first token specs: clear redemption rights, reserve accounting, on‑chain proof frameworks and a legal wrapper. (pwc.com)
  • Choose execution layer aligned to use case: L2s for high throughput, ZK for privacy/speed tradeoffs, mainnet for maximal decentralization. (l2beat.com)
  • Harden treasury: multi‑sig, separated custodians, and routine audits. (chainalysis.com)
• For token holders and traders:
  • Segment holdings by risk and time horizon: long‑term assets into cold storage; active trading capital in regulated custodial or hot wallets with strict 2FA; exposure to experimental AI tokens sized to risk tolerance. (academy.binance.com)

9. Scenario view (12–36 months)

• Base case: steady growth in tokenized assets and L2 activity, with clearer stablecoin rules in major jurisdictions and improving institutional on‑ramps. Market volatility persists, but capital allocates more to compliant token products. (pwc.com)
• Regulatory‑positive tail: coordinated frameworks (EU + US clarity) accelerate RWA issuance and stablecoin adoption, driving a multi‑trillion dollar tokenization runway for finance and commerce. (finance.ec.europa.eu)
• Negative tail: sustained large-scale hacks or harsh regulatory outcomes for particular token categories could lead to rapid de‑risking and slower institutional adoption. Robust custody and compliance planning are the best mitigants. (chainalysis.com)

Conclusion — what token teams and holders should prioritize now

• Build tokens with legal and operational guardrails in place; select execution layers and token standards based on real usage rather than hype; and treat custody, auditing, and recovery as product features rather than afterthoughts. The next wave of token innovation will converge technology, regulation and real economic utility — projects that align those three will capture durable value. (pwc.com)

Appendix: further reading (authoritative sources)

• PwC: Tokenization in financial services (practical frameworks and value drivers). (pwc.com)
• L2BEAT: monthly updates and Layer‑2 TVL/activity insights. (l2beat.com)
• European Commission: MiCA and DORA implementation updates. (finance.ec.europa.eu)
• Chainalysis: 2025 crypto crime and mid‑year trends (stolen funds analysis). (chainalysis.com)
• Congressional Research Service (CRS): overview of U.S. stablecoin legislative proposals (STABLE Act overview). (congress.gov)
• CoinDesk: trends in decentralized AI and tokenized AI infrastructure. (coindesk.com)
• Binance Academy: hardware wallet security best practices. (academy.binance.com)

Optional recommendation (custody and user security)

• Given the heightened risk environment and the strategic importance of secure private‑key management for token holders, hardware wallets and air‑gapped signing are sensible defensive measures for long‑term holdings and treasury funds. If you are evaluating hardware solutions, prioritize devices and ecosystems that combine: a certified secure element, air‑gapped signing options, clear firmware update policies, and an audited, user‑friendly companion app — these characteristics materially reduce the most common operational risks described above. (For readers wanting a non‑technical, user‑centric option, OneKey is an example of a hardware wallet provider that emphasizes certified secure elements, air‑gapped signing and a polished cross‑platform UX; evaluate any vendor against the checklist above before custody decisions.)

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