Franklin Templeton predicts U.S. regulators will drive crypto innovation, with Bitcoin and DeFi growing through stablecoins and blockchain integration.
Franklin Templeton Digital Assets has released its 2025 outlook for the cryptocurrency market. It has predicted major developments pushed by U.S. regulators, institutional interest, and technology development. According to the report, the United States is likely to regain its position as a crypto innovation leader with regard to stable currency and crypto financial products with the regulatory clarity that comes with it.
U.S. regulators, like SEC, will play the key role for developing more crypto related investment products, said the firm. This comprises tokenized securities as well as Exchange-Traded Funds (ETFs). This will help to expand the market participation and crypto to be friendly to the traditional investors.
Moreover, major financial institutions are expected to be able to issue stablecoins within the expected regulatory framework. stablecoins and tokenized products could drive global adoption leading to rapid growth of decentralized finance (DeFi).
Franklin Templeton sees crypto shifting from speculation to utility by 2025
Digital asset Bitcoin is expected to be a global financial asset by 2025. This will be backed by both sovereign and institutional adoption. Bitcoin’s role as a digital store of value will only be bolstered further after several countries are expected to build strategic Bitcoin reserves.
Increasing demand for decentralized physical infrastructure networks (DePIN) is also highlighted. This demand is coming from industrial needs for more efficient and distributed options. This growth will be led by the applications like logistics and Internet of Things (IoT). Consequently, businesses will find ways to be more secure and more efficient to operate which leads to a bigger need for decentralized infrastructure.
Another important trend converging during this time period is the connection between Artificial Intelligence (AI) and cryptocurrency. By 2025, blockchain technology will be at its core in delivering transparency and verification for the rising AI economy. Blockchain will be used by AI agents to automate transactions as well as manage their portfolios. In a nutshell, this will also bring blockchain based systems integrated with while Internet, Digital content and Social Media.
Franklin Templeton is seeing crystal clear evidence of a major shift in the crypto industry by 2025. Speculative investments will be moved off to the side, and attention will fall on more practical, utility driven applications. Stakeholders should therefore keep watching regulatory changes, institutional moves and tech actions in the AI – crypto integration. This will be a crucial change in the global financial system of the future.
