Emerging Crypto Startups to Watch in 2025, VCs Highlight Key Players

The cryptocurrency sector, once thriving, is now witnessing a cautious resurgence as venture capitalists (VCs) identify promising startups for 2025. In 2022, the industry peaked with over $20 billion raised globally. However, the collapse of the FTX exchange and increased regulatory scrutiny led to a significant downturn, prompting many VCs to withdraw. Notable European crypto firms, including Copper, Sorare, and Ledger, faced layoffs and lost major partnerships as Bitcoin’s price plummeted from its record high of $64,000 in late 2021 to below $17,000.

Despite these challenges, recent regulatory changes have sparked renewed interest among investors. The full implementation of the Markets in Crypto-Assets (MiCA) regulation in Europe has created a clearer framework for the industry, while UK regulators are exploring comprehensive crypto asset regulations. This regulatory clarity has led to excitement about niche segments, especially stablecoins, following significant acquisitions like US fintech Stripe’s purchase of the stablecoin infrastructure company Bridge.

In light of these developments, leading investors shared their insights on notable crypto startups across Europe and the UK poised for growth in the coming years.

Innovative Startups on the Horizon

Anna Bertha, investment lead at Digital Currency Group, highlights the following startups:

Peaq (Germany) is developing a blockchain infrastructure designed for the emerging machine economy. This innovative platform aims to facilitate transactions among autonomous devices across various industries, including mobility and energy. If successful, Peaq could revolutionize how billions of machines interact and generate value on the blockchain.

Exo Labs (UK) is reimagining cloud infrastructure by utilizing spare computing power from everyday devices. By creating a decentralized network, Exo Labs offers a cost-effective solution for intensive workloads, such as AI training, while keeping data processing localized.

Anera Labs (UK) operates as a high-frequency trading firm focused on digital asset liquidity in decentralized finance. The team is working on establishing a formal market for trading GPU hours and inference costs, potentially transforming how intelligence is commoditized.

Strategic Advancements in Fintech

Marguerite de Tavernost, a web3 investor at the Ledger-Cathay Fund, points to several noteworthy startups:

MetalGear (France) is addressing inefficiencies in cross-border payments by leveraging blockchain technology and stablecoins. Recently licensed under MiCA, MetalGear enhances fund transfer systems between regions such as Europe and Southeast Asia, offering a faster and more transparent alternative to traditional banking methods.

Tranched (UK), founded in 2023, is automating the complex process of bundling loans into securities using blockchain technology. This innovative approach positions Tranched as a potential disruptor in the global securitization industry, aiming to lower costs and improve efficiency in financing transactions.

Atlas (Austria) is creating high-quality 3D assets through AI on the Bittensor blockchain. This platform focuses on incentivized competition among participants to produce AI outputs, particularly in the gaming sector.

Wendy Xiao Schadeck, a partner at Northzone, emphasizes the significance of companies like BVNK (UK), which is developing a modern payment infrastructure that bridges traditional finance and digital assets. BVNK’s platform is designed to enable real-time transactions across currencies, capitalizing on the regulatory clarity introduced by MiCA.

Fipto (France) is a regulated payments platform that assists businesses in managing cross-border transactions with blockchain efficiency. Licensed as a digital asset service provider in France, Fipto aims to become a premier solutions provider for firms navigating the evolving regulatory landscape.

Sling (Germany) offers a digital asset treasury and spend management platform tailored for web3 startups and decentralized autonomous organizations (DAOs). By providing tools for efficient operations, Sling is well-positioned to cater to the growing number of companies aligning with MiCA’s standards.

Transforming the Financial Landscape

Diana Biggs from 1kx identifies additional promising ventures:

Compass Labs (UK) is leveraging its academic and financial expertise to provide a universal application programming interface (API) for blockchain finance. This solution enables institutions to manage on-chain financial products without the need for extensive backend infrastructure.

Cense (Switzerland) addresses the challenges banks face in onboarding clients with crypto assets. By streamlining compliance processes, Cense allows financial institutions to efficiently serve high-net-worth individuals who hold digital assets, thereby improving client experiences.

Neverless (Spain/Latvia) is democratizing institutional-grade crypto investing through a user-friendly app. Founded by former employees of Revolut, the firm focuses on accessibility and transparency, gaining traction among retail users across the EU.

In summary, as the cryptocurrency landscape evolves, these startups represent a promising future for innovation and growth in the industry. With increasing regulatory clarity and a focus on efficiency, the next few years may bring significant advancements in how digital assets are utilized and managed.