Franklin Templeton is confident that Bitcoin (BTC), driven by the increasing acceptance of Bitcoin among sovereign countries and institutional investors, will become a major global asset in 2025.
The firm’s Digital Assets: 2025 Crypto Outlook report projects that several countries will integrate Bitcoin into their strategic reserves, reinforcing its role as a digital store of value amid ongoing global economic uncertainty.
Institutional adoption is also expected to grow as traditional financial entities seek exposure to Bitcoin’s long-term value proposition, further embedding the asset into mainstream markets.
Clear regulations
Franklin Templeton predicted that more clear regulations would unlock more diverse investment products. This includes the expansion of Bitcoin Exchange-Traded Funds (ETFs), and tokenized assets tied to Blockchain Assets.
Firm also believes the US Securities and Exchange Commission, or SEC, will have a major role to play in guiding the crypto-industry into a better regulatory period.
Report:
“Favorable regulation will allow the US to reestablish itself as a global hub for crypto innovation.”
The firm also expects a regulatory framework for stablecoins to emerge within the next few months. This could allow major financial institutions the opportunity to create their own stablecoins.
This development is expected to increase liquidity, encourage innovation in payment and improve cross-border settlement.
AI convergence
In addition to Bitcoin’s growth, the report highlighted the increasing convergence between artificial intelligence (AI) and blockchain technology. Franklin Templeton forecast that AI-driven agent will automate portfolio rebalancing and DeFi, as well as on-chain transaction.
The convergence of these technologies is expected to have a profound impact on areas like supply chain management and digital identity. It will also contribute to the development of a robust blockchain ecosystem.
Decentralized Physical Infrastructure Networks (DePIN), are also a focus. Franklin Templeton anticipates increased demand in industries such as logistics, energy, and Internet of Things. These networks, according to the firm, could provide more efficient, secure and transparent alternatives than traditional infrastructure models.
Franklin Templeton has predicted that by 2025, crypto-technologies will be integral in global financial systems and operations. This transition, according to the firm will be a reflection of a more mature market and heightened emphasis on digital asset applications in real life.
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