As the curtain falls on 2024, the crypto world is gearing up for another unpredictable year. With a market valued at nearly $1.8 trillion, all eyes are on what lies ahead. Franklin Templeton, the $1.68 trillion asset manager, offered some predictions about what to expect in 2025. year.
In its latest look, the company outlines three key themes for 2025: regulatory clarity, institutional adoption, and the rise of AI-crypto collaboration.
Franklin Templeton on Regulation: A New Dawn?
Expectations are high that regulatory clarity will be realized in 2025. According to Franklin Templeton’s expectations, US regulators, including the SEC, will lead the way in providing a solid regulatory framework for the crypto sector.
Expectations that the new Donald Trump administration will be friendlier to cryptocurrencies have supported the industry.
Trump’s nomination of Paul Atkins, a well-known proponent of digital assets, to chair the SEC signals a potential turning point.
This is not just a story. Strive Asset Management has already filed for a Bitcoin Bond ETF. Bitwise wants to launch Bitcoin Standard Corporations ETF.
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In Europe, regulation of the crypto-asset market (MiCA) has inspired traditional financial giants like Deutsche Bank and Societe Generale to venture into stablecoins and tokenized securities.
The asset management company sees this trend spreading globally, encouraging institutional integration with DeFi ecosystems.
Franklin Templeton expects this wave of regulatory clarity to launch new crypto investment products and push institutions deeper into digital assets.
Tokenization and stablecoins
Tokenization is no longer just a postman. Franklin Templeton predicts it will reshape financial markets in 2025. Tokenization offers transparency, efficiency and affordability, making it an attractive solution for modernizing financial markets.
Stablecoin will also have its moment. With clearer guidelines, more institutions are likely to enter this space. Europe is leading the way in this, with banks like BBVA developing their own stablecoins backed by the euro.
Franklin Templeton argues that this institutional leap into stablecoins will serve as a major catalyst for the growth of DeFi, reshaping the way money flows across decentralized platforms.
AI-crypto synergy
Artificial intelligence is already changing industries, and crypto is no exception. Franklin Templeton predicts that blockchain will play a big 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 (DePINs) could also grow as industries like logistics and IoT adopt blockchain to improve efficiency.
Meanwhile, Bitcoin’s position as a global store of value looks increasingly secure. Franklin Templeton predicts that more nations and corporations will establish Bitcoin reserves, further integrating the asset into the mainstream financial system.
2025: The year of transformation?
Franklin Templeton’s outlook for 2025 depicts evolution, not revolution. Regulations are in place to ensure stability. Institutions are expected to embrace crypto in new ways. AI and blockchain could create opportunities we have only begun to imagine.
As the $1.8 trillion market prepares to jump into its next phase, Franklin Templeton’s outlook offers investors a look at the forces shaping the future.
With regulation, institutional adoption and technology leading the way, 2025 could mark the most decisive year for cryptocurrencies yet.
