Franklin Templeton believes Bitcoin (BTC) will solidify its position as a global financial asset by 2025, driven by increasing adoption among sovereign countries and institutional investors.
The company’s Digital Assets: 2025 Crypto Outlook report predicts that several countries will integrate Bitcoin into their strategic reserves, strengthening 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.
Clarity of regulations
Franklin Templeton predicted 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 company also believes that the US Securities and Exchange Commission (SEC) will play a crucial role in shaping the crypto industry into a more favorable regulatory era.
According to the report:
“Favorable regulation will allow the US to re-establish itself as a global hub for crypto innovation.”
Additionally, the company expects a regulatory framework for stablecoins to emerge in the coming months, allowing major financial institutions to issue their own stablecoins.
These developments are predicted to drive greater liquidity, innovation in payments and the efficiency of cross-border settlements.
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-powered agents will automate on-chain transactions, portfolio rebalancing, and DeFi operations.
This convergence is expected 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 an increasing demand for decentralized solutions in sectors such as logistics, energy distribution and the Internet of Things (IoT). The company believes these networks can provide more secure, transparent and efficient alternatives to traditional infrastructure models.
Franklin Templeton predicted that 2025 will mark a shift from speculative trading to practicality, as fundamental crypto technologies will become an integral part of global financial and operational systems. The company added that this transition will reflect broader market maturity and an increasing emphasis on real-world applications for digital assets.
