Tokens to tangles – navigating the digital assets expansion

By June Chung, Account Executive

Read time: 5 minutes 

From red tape to green light 

The regulatory landscape surrounding digital assets has witnessed dramatic evolution on both sides of the pond this year. The passage of the GENIUS Act and HMT Policy Paper on Wholesale Financial Markets Digital Strategy both took place within the same week in July – signaling a critical time in the acceleration of the changing role of digital assets.    

With greater regulatory clarity the leading catalyst for digital assets growth, the optimistic market outlook seen at the start of the year now appears to be playing out. This year we’ve witnessed a marked increase in the number of financial institutions providing digital asset products and services, as well as burgeoning institutional investment in digital assets across the globe.  

There is undoubtedly tremendous opportunity surrounding the fast-evolving digital assets universe, but there are also risks – especially when it comes to strategic communications.  

More coins, more noise 

Despite the growing number of players in the space, it’s not all smooth sailing for digital assets firms and the financial institutions looking to branch into the space. A spread of challenges persists: 

• Cross-border regulatory convergence and complexity: Although the US and UK may now be moving in a similar direction, they remain distinct in pace. Firms operating across jurisdictions face increasing pressure to communicate their compliance status and what different regimes mean for their operations. Inconsistent messaging amid regulatory divergence can fuel stakeholder uncertainty, as the business may appear fragmented or uncoordinated.  
• Market structure overhaul challenges: Rapid changes come with greater concern over operational readiness. Take stablecoins, for example – while their adoption drives modernization through instant settlement, tokenized assets, and new forms of payment, integrating them with traditional bank rails or central securities depositories represents a dramatic infrastructure shift. This transformation introduces operational complexities – such as on-chain/off-chain reconciliation, key management, and emergency recovery procedures – that can expose firms to outages, payment delays, or loss of client funds. 
• Misconceptions and mistrust: The digital assets space continues to grapple with the legacy of high-profile failures, scams, and regulatory crackdowns. Media focus on extreme price volatility often reinforces the perception that the asset class is unreliable, unstable, and speculative. This narrative is compounded by major collapses – most notably the fall of FTX in 2022 – which remains a defining cautionary tale, frequently cited as evidence of systemic vulnerabilities and governance failures within the industry.  

Where communications comes in  

In this new era for digital assets, the competitive edge not only lies with those who can adapt seamlessly to supportive regulatory changes, but those who can translate those changes into clear, credible, and compelling narratives that resonate with stakeholders. Strategic communications and specialist PR agencies are more critical than ever in helping financial institutions, digital asset firms, and institutional investors break into the market, grow, and protect what they’ve grown.  

• Clarity through simplicity: At the heart of effective communication is clarity. Digital assets and tokenization remain dense with technical jargon, complex market structures, and evolving regulatory frameworks – barriers that can alienate investors, clients, and the public. Specialist PR agencies can help distil these complexities into accessible, compelling narratives that resonate across a broader audience – without sacrificing accuracy. Clear, well-crafted messaging can demonstrate a firm’s operational readiness, regulatory alignment, and ability to navigate cross-border frameworks with confidence.  
• Proactivity and transparency: A commitment to transparency can help communicate the prioritization of investor protection and safeguarding – overcoming the legacy that has left a deep trust deficit among the public and institutional stakeholders. The damaging perception that the digital assets industry is inherently risky or poorly regulated must be confronted head-on. By helping take control of the narrative and position themselves as credible stewards of the next phase of market innovation, specialist PR agencies can help firms make the case for digital assets being able to enhance – not compromise – market integrity.  
• Rapid and resilient crisis communications: In a market where reputational risk can escalate overnight, firms must be equipped with agile and resilient crisis communications strategies. It’s not just about being quick to be reactive – it’s about being prepared to be proactive. Digital assets firms and financial institutions looking to grow, and protect what they’ve grown, must have protocols in place to respond decisively to unexpected events – whether market volatility, regulatory action, security incidents, or misinformation. 

No longer a nice to have 

The expansion of digital assets is as complex as it is promising. As we approach the next chapter of innovation in this fascinating tale, strategic communications will no longer be a ‘nice to have’ – it is already an essential asset for any firm looking to distinguish tokens from tangles.  

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About the author

June Chung is an account executive in our Capital Markets team, based in London, having completed internships with the London Stock Exchange and J.P Morgan. She’s passionate about the industry and in supporting her clients elevate their media profiles.

Key takeaways 

Clear communication is critical

Translating complex digital asset concepts and evolving regulations into simple, digestible messaging builds trust and investor confidence.

Trust must be rebuilt

Transparent, proactive PR strategies are essential to counter skepticism and demonstrate operational credibility in a post-FTX landscape.

Preparedness protects reputation

Robust crisis comms can mitigate reputational risk, helping firms react swiftly and decisively during turbulence.