Franklin Templeton forecasts increased adoption of Bitcoin by sovereign entities and institutions by 2025.

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Franklin Templeton anticipates that Bitcoin () will establish itself as a global monetary asset by 2025, driven by increasing acceptance among sovereign nations and institutional investors.

The firm’s Digital Assets: 2025 Crypto Outlook report forecasts that several countries will incorporate Bitcoin into their strategic reserves, reinforcing its role as a digital store of value amid ongoing global economic instability.

Institutional adoption is also expected to rise as traditional financial institutions seek exposure to Bitcoin’s long-term value proposition, further integrating the asset into mainstream markets.

Regulatory clarity

Franklin Templeton predicts that clearer regulations could unlock a wider range of investment products, including the expansion of Bitcoin exchange-traded funds (ETFs) and tokenized securities linked to blockchain assets.

The firm also believes that the US Securities and Exchange Commission (SEC) will play a crucial role in shaping the crypto industry during a more favorable regulatory period.

According to the report:

“Favorable regulation will enable the US to reestablish itself as a global hub for crypto innovation.”

Additionally, the firm expects that a regulatory framework for will emerge in the coming months, which could allow major financial institutions to issue their own stablecoins.

These developments are anticipated to enhance liquidity, promote innovation in payments, and improve the efficiency of cross-border settlements.

AI convergence

In conjunction with Bitcoin’s advancement, the report emphasized the increasing convergence between artificial intelligence (AI) and blockchain technology. Franklin Templeton forecasts that AI-driven agents will automate on-chain transactions, portfolio rebalancing, and activities.

This convergence is expected to revolutionize areas such as supply chain management, digital identity, and content verification, contributing to a more robust blockchain ecosystem.

Decentralized physical infrastructure networks (DePIN) are another area of interest. Franklin Templeton anticipates a growing demand for decentralized solutions in sectors like logistics, energy distribution, and the Internet of Things (IoT). The firm believes these networks could provide safer, transparent, and efficient alternatives to traditional infrastructure models.

Franklin Templeton predicts that 2025 will signify a transition from speculative trading to practical application as foundational crypto technologies become integral to global financial and operational systems. The firm added that this shift will reflect broader market maturity and an increasing focus on real-world applications for digital assets.

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