Franklin Templeton predicts Bitcoin’s rise as a global financial asset by 2025

In a forthcoming analysis, Franklin Templeton has projected that Bitcoin (BTC) is set to cement its status as a crucial global financial asset by 2025, driven by a surge in adoption from sovereign nations and institutional investors alike. The firm’s report, titled “Digital Assets: 2025 Crypto Outlook,” outlines key trends that suggest a significant integration of Bitcoin into strategic reserves of various countries, strengthening its position as a digital store of value amid prevailing global economic uncertainties.

The firm anticipates continued growth in institutional adoption, as traditional financial institutions aim to engage with Bitcoin’s potential for long-term value appreciation. This move is expected to further embed Bitcoin within established market frameworks.

The report also highlights the importance of regulatory developments in shaping the future of cryptocurrency. Franklin Templeton posits that clearer regulations could lead to a wider array of investment products, including an expansion of Bitcoin exchange-traded funds (ETFs) and tokenised securities connected to blockchain assets. The firm asserts that the US Securities and Exchange Commission (SEC) will be fundamental in ushering in an era of favourable regulations that could reposition the United States as a preeminent hub for crypto innovation.

“Favorable regulation will allow the US to reestablish itself as a global hub for crypto innovation,” the report stated. Furthermore, there is an expectation that a robust regulatory framework for stablecoins will materialise in the upcoming months, enabling major financial entities to launch their own stablecoin offerings. Such developments are seen as catalysts for heightened market liquidity, advancing payment innovations, and boosting the efficiency of cross-border settlement processes.

In conjunction with Bitcoin’s projected expansion, the report emphasizes a notable convergence between artificial intelligence (AI) and blockchain technology. Franklin Templeton predicts that AI-driven agents will increasingly automate on-chain transactions, manage portfolio rebalancing, and facilitate decentralised finance (DeFi) activities. This integration is expected to manifest across various sectors, such as supply chain management, digital identity verification, and content authentication, thereby bolstering the framework of the blockchain ecosystem.

The firm also anticipates an uptick in demand for Decentralised Physical Infrastructure Networks (DePIN), with implications for logistics, energy distribution, and the Internet of Things (IoT). According to Franklin Templeton, these decentralised solutions are poised to offer more secure, transparent, and efficient alternatives to conventional infrastructure models.

Looking ahead to 2025, Franklin Templeton envisions a pivotal shift in the cryptocurrency landscape, where speculative trading gives way to tangible utility. This transition is expected to signify a broader maturation of the market, characterized by an increasing focus on practical, real-world applications for digital assets across various industries.

Source: Noah Wire Services