As 2025 approaches, the cryptocurrency market is entering a pivotal period full of potential. According to the latest report from Franklin Templeton's digital assets division, the coming year will witness significant changes in the clarification of regulatory frameworks, accelerated institutional adoption, and technological evolution.

Clarification of regulations: the U.S. may return to being a global innovation center

Franklin Templeton predicts that regulatory agencies such as the U.S. Securities and Exchange Commission (SEC) will play a key role in promoting diversified crypto investment products (such as exchange-traded funds ETFs and tokenized securities). Under favorable regulatory conditions, the U.S. is expected to regain its status as a global center for crypto innovation, attracting more investments and entrepreneurs to this field.

Integration of traditional finance and crypto infrastructure

The report indicates that the integration of traditional finance (TradFi) and crypto infrastructure will become another significant trend. The U.S. may introduce a regulatory framework for stablecoins, paving the way for major financial institutions to issue their own stablecoins. At the same time, the popularity of stablecoins and tokenized products will become a major driving force for the growth of decentralized finance (DeFi) globally.

Bitcoin solidifies its status as a digital store of value

As a global financial asset, Bitcoin's status as a digital store of value will be further solidified. With increasing adoption rates by sovereign nations and institutions, Franklin Templeton predicts that more countries will incorporate Bitcoin into their strategic reserves, further enhancing its global influence.

Rising demand for decentralized physical infrastructure

The demand for decentralized physical infrastructure networks (DePIN) is expected to significantly increase in 2025. As fields like the Internet of Things (IoT) and logistics increasingly emphasize efficiency and decentralized solutions, DePIN will provide more groundbreaking innovations applicable to the real world.

Accelerated integration of artificial intelligence and blockchain

The intersection of artificial intelligence (AI) and cryptocurrency will accelerate development in 2025. Blockchain technology can provide transparency and verification for AI, which is crucial for scaling the AI-driven economy. Additionally, AI smart agents will leverage blockchain technology to automate on-chain transactions and asset management, even integrating digital content and social media activities into on-chain applications.

From speculation to practicality: deep integration of technology

Franklin Templeton predicts that 2025 will be an important milestone for cryptocurrency technology transitioning from speculation to practicality. As its underlying technology becomes a core component of global finance and operational systems, cryptocurrency will truly demonstrate its value.

Future observation points: regulation, institutional trends, and AI-crypto integration

For market participants, monitoring regulatory developments, institutional adoption dynamics, and the technological integration of artificial intelligence and cryptocurrency will be three key factors for successfully navigating the cryptocurrency market in the coming year.

This article by Franklin Templeton releases the 2025 cryptocurrency trend outlook: the U.S. may return to being a global innovation center. Originally appeared in Chain News ABMedia.