Franklin Templeton believes Bitcoin (BTC) will solidify its position as a global financial asset in 2025, driven by increasing adoption among sovereign nations and institutional investors.

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.

Regulatory clarity

Franklin Templeton projected that clearer regulations could unlock more diversified investment products, including the expansion of Bitcoin exchange-traded funds (ETFs) and tokenized securities tied to blockchain assets.

The firm also believes that the US Securities and Exchange Commission (SEC) will play a pivotal role in shaping the crypto industry in a more favorable regulatory era.

According to the report:

“Favorable regulation will allow the US to reestablish itself as a global hub for crypto innovation.”

Additionally, the firm expects that a stablecoin regulatory framework will emerge in the coming months, which could enable major financial institutions to issue their own stablecoins.

These developments are predicted to drive greater liquidity, foster innovation in payments, and enhance cross-border settlement efficiency.

AI convergence

In addition to Bitcoin’s growth, the report highlighted the increasing convergence between artificial intelligence (AI) and blockchain technology. Franklin Templeton predicted that AI-driven agents will automate on-chain transactions, portfolio rebalancing, and DeFi activities.

This convergence is projected to transform areas such as supply chain management, digital identity, and content verification, contributing to a more robust blockchain ecosystem.

Decentralized physical infrastructure networks (DePIN) are another area of focus. Franklin Templeton foresees heightened demand for decentralized solutions in sectors like logistics, energy distribution, and the Internet of Things (IoT). The firm believes these networks could offer more secure, transparent, and efficient alternatives to traditional infrastructure models.

Franklin Templeton predicted that 2025 will mark a shift from speculative trading to practical utility as foundational crypto technologies become integral to global financial and operational systems. The firm added that this transition will reflect broader market maturity and an increasing emphasis on real-world applications for digital assets.

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