Franklin Templeton has come out with its crypto outlook for 2025, in which it said digital asset development will continue apace, driven by increased clarity on regulations, institutional adoption, and technological advancement.
Again, it is regulators, mostly from the U.S. and primarily the SEC, that will drive this process. Participation will further open up new routes for crypto-related financial instruments such as crypto ETFs and tokenized securities.
The report highlights that favorable regulation has been instrumental in making the U.S. a world leader in innovation in cryptocurrency. As such regulations get more concrete, institutions will increasingly turn to tokenized assets and stablecoins, leading to even greater growth in DeFi globally.
Bitcoin’s rise as a digital store of value
In 2025, the combination of traditional finance and crypto infrastructure will begin to happen. A new framework for stablecoins in the United States will be implemented that allows big players from the financial field to issue their own stablecoins, which adds to the liquidity and stability within the crypto market.
Bitcoin will be more integrated as a global financial asset. Large sovereign nations and institutions will increase their strategic reserves of BTC. Thus further cementing Bitcoin’s status as a digital store of value.
On the other hand, demand for DePIN-a, a decentralized physical infrastructure network, also increases to drive industries toward fully decentralized solutions for on-ground applications in areas such as logistics and IoT.
Crypto and AI convergence: A new frontier
The convergence of AI and blockchain technology will also be showcased. Blockchain’s transparency and verification features will help power the AI-driven economy. AI agents will perform automation on-chain, manage portfolios, and integrate digital content with social media in a decentralized environment.
2025 is an inflection point for the crypto space. As the speculative phase wears off, the technology that underpins cryptocurrencies will be key to global finance and operations.
It, therefore, requires that investors and stakeholders alike monitor regulations, institutional actions, and the blending of AI with blockchain as a way of trying to keep ahead in the fast-evolving landscape.
