Key Takeaways
Franklin Templeton’s latest report outlines a pivotal year ahead for the crypto industry, driven by key policy changes and broader institutional involvement.
Central to its predictions is the United States reclaiming its role as a global crypto leader, aided by regulatory clarity under a pro-crypto administration.
Franklin Templeton asserted that the incoming pro-crypto president, Donald Trump, could lead the way for crypto regulatory clarity in the U.S.
Having appointed several pro-crypto administrators in key regulatory positions, a wave of favorable regulation could propel the U.S. to establish “itself as a global hub for crypto innovation.”
The report predicts that the anticipated regulatory shifts will foster a more integrated financial ecosystem where traditional and decentralized systems interact seamlessly.
One of the report’s most ambitious forecasts is that multiple nations will establish Bitcoin as a treasury reserve asset.
While companies like MicroStrategy and Tesla have made headlines for holding Bitcoin on their balance sheets, sovereign adoption remains speculative.
However, Franklin Templeton suggests this could change in 2025, citing the U.S. government’s proposed national Bitcoin reserve as a catalyst.
“Bitcoin will solidify its position as a global financial asset acting as a digital store of value, accelerated by sovereign and institutional adoption. We expect to see strategic BTC reserves added by several nations,” the report read.
While countries like Japan and Russia have hesitated due to concerns over volatility and liquidity, the report predicts that Bitcoin’s status as a global digital store of value will gain traction among sovereign entities.
Beyond Bitcoin, the report underscores the growth potential for decentralized finance (DeFi) and the expanding adoption of stablecoins.
It also points to the rise of decentralized physical infrastructure networks (DePIN), which are expected to meet increasing demand in sectors like logistics and IoT.
“2025 will mark a shift from speculation to utility as crypto’s foundational technologies become integral to global financial and operational systems,” the report states, urging stakeholders to monitor regulatory developments, institutional moves, and the intersection of AI and blockchain technologies.
As the industry moves toward a future of greater integration and utility, Franklin Templeton’s vision for 2025 highlights a transformative year shaped by regulation, innovation, and the merging of TradFi and DeFi.