Franklin Templeton Bitcoin (BTC) is believed to solidify its position as a global financial asset in 2025, driven by increasing adoption among sovereign nations and institutional investors.
The company's Digital Assets: Digital Currency Outlook 2025 reports 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 institutions seek exposure to the long-term value of Bitcoin, further embedding the asset in mainstream markets.
Regulatory clarity
Franklin Templeton predicted that more transparent regulation could open up more diverse investment products, including the expansion of bitcoin exchange-traded funds (ETFs) and tokenized securities linked to blockchain assets.
The company also believes that the US Securities and Exchange Commission (SEC) will play a key role in shaping the crypto industry into a more favorable regulatory era.
According to this report:
Favorable regulations allow the United States to reassert itself as a global center for cryptocurrency innovation.
Additionally, the company expects a stablecoin regulatory framework to emerge in the coming months that could enable major financial institutions to issue their own stablecoins.
These developments are expected to increase liquidity, foster innovation in payments, and increase the efficiency of cross-border settlement.
Convergence of artificial intelligence
In addition to Bitcoin's growth, the report highlighted the growing convergence between artificial intelligence (AI) and blockchain technology. Franklin Templeton predicted that AI-based agents will automate on-chain transactions, portfolio rebalancing and DeFi activities.
This convergence is expected to revolutionize areas such as supply chain management, digital identity and content verification, contributing to a stronger blockchain ecosystem.
Decentralized Physical Infrastructure Networks (DePIN) is another area of interest. Franklin Templeton predicts increased 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 see a shift from speculative trading to practical utility as the underlying crypto technologies become global financial and operational systems. The company added that the transition reflects the maturity of the broader market and the increasing emphasis on real-world applications for digital assets.
