As the curtain closes on 2024, the crypto world is gearing up for another unpredictable year. With a market worth nearly $1.8 trillion, all eyes are on what’s next. Franklin Templeton, the $1.68 trillion asset manager, has made some predictions about what to expect in 2025. In its latest outlook, the firm highlights three key themes for 2025: regulatory clarity, institutional adoption, and increased AI-crypto collaboration.
Franklin Templeton discusses Regulation: A new dawn?
Regulatory clarity is expected to be significantly achieved by 2025. According to Franklin Templeton's expectations, U.S. regulators, including the SEC, will lead in providing a robust regulatory framework for the cryptocurrency sector.
The expectation that Donald Trump's new administration will be more friendly to cryptocurrency has boosted the industry.
Trump's nomination of Paul Atkins, a prominent supporter of digital assets, as SEC chair signals a potential turning point.
This is not just talk. Strive Asset Management has filed for a Bitcoin Bond ETF. Bitwise wants to launch the Bitcoin Standard Corporations ETF.
In Europe, the regulation of the cryptocurrency asset market (MiCA) has inspired traditional financial giants like Deutsche Bank and Societe Generale to invest in stablecoins and tokenized securities.
The asset management company sees this trend spreading globally, driving institutional integration into the DeFi ecosystem.
Franklin Templeton expects that this wave of regulatory clarity will open up new cryptocurrency investment products and encourage institutional investors to delve deeper into digital assets.
Tokenization and Stablecoin
Tokenization is no longer just a buzzword. Franklin Templeton predicts it will reshape the financial market by 2025. Tokenization offers transparency, efficiency, and accessibility, making it an attractive solution for modernizing the financial market.
Stablecoins will also have their moment. With clearer guidelines, many organizations are likely to enter this field. Europe is leading the way, with banks like BBVA developing their own Euro-backed stablecoins.
Franklin Templeton believes this institutional progress in stablecoins will serve as a key catalyst for the development of DeFi, reshaping how capital flows through decentralized platforms.
The Combination of AI and Crypto
Artificial intelligence is transforming industries, and cryptocurrency is no exception. Franklin Templeton predicts that blockchain will play a significant role in the AI economy. Its transparency and security make it ideal for verifying AI-driven processes.
AI-powered tools are expected to automate on-chain transactions and improve portfolio management. Decentralized physical infrastructure networks (DePIN) may also develop as industries like logistics and IoT adopt blockchain to enhance efficiency.
Meanwhile, Bitcoin's position as a global store of value is becoming increasingly secure. Franklin Templeton predicts that many countries and corporations will establish Bitcoin reserves, continuing to integrate this asset into the mainstream financial system.
2025: The Year of Transformation?
Franklin Templeton's 2025 outlook paints a picture of evolution, not revolution. Regulations are set to bring stability. Institutions are expected to adopt cryptocurrency in new ways. AI and blockchain may create opportunities that we are just beginning to imagine.
As the $1.8 trillion market prepares to enter its next phase, Franklin Templeton's outlook gives investors a glimpse into the forces shaping the future.
With regulation, institutional adoption, and leading technology, 2025 could mark the most decisive year for cryptocurrency.
