Franklin Templeton believes Bitcoin (BTC) will solidify its status as a global financial asset by 2025 due to increased adoption among sovereign nations and institutional investors.
The company’s Digital Assets: Crypto Outlook 2025 report says several countries will integrate Bitcoin into their strategic reserves, strengthening its role as a digital store of value amid continued global economic uncertainty. I’m predicting.
Institutional adoption is also expected to increase as traditional financial institutions seek exposure to Bitcoin’s long-term value proposition and further embed the asset into mainstream markets.
Regulatory clarity
Clearer regulation could allow for a wider variety of investment products, such as Bitcoin exchange-traded funds (ETFs) and the expansion of tokenized securities tied to blockchain assets, said Franklin Templeton. predicted.
The company also believes that the US Securities and Exchange Commission (SEC) will play a pivotal role in shaping the crypto industry into a more favorable regulatory era.
According to the report:
“Favorable regulation will allow the United States to re-establish itself as a global hub for cryptocurrency innovation.”
Furthermore, the company expects that a stablecoin regulatory framework will emerge in the coming months that could allow major financial institutions to issue their own stablecoins.
These developments are expected to increase liquidity, foster payments innovation, and improve the efficiency of cross-border payments.
AI convergence
In addition to Bitcoin’s growth, the report also highlighted the growing convergence of artificial intelligence (AI) and blockchain technology. Franklin Templeton predicted that AI-driven agents will automate on-chain trading, portfolio rebalancing, and DeFi activities.
This convergence is predicted to transform areas such as supply chain management, digital identity, and content verification, contributing to a more robust blockchain ecosystem.
Distributed physical infrastructure networks (DePIN) are also a focus area. Franklin Templeton predicts increased demand for decentralized solutions in areas such as logistics, energy distribution, and the Internet of Things (IoT). The company believes these networks can provide a more secure, transparent, and efficient alternative to traditional infrastructure models.
Franklin Templeton predicted that 2025 will mark the transition from speculative to practical trading, as fundamental cryptography becomes essential to the world’s financial and business systems. The company added that this transition reflects the broader maturity of the market and the increased emphasis on real-world applications of digital assets.
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