Franklin Templeton releases 2025 crypto outlook: focus on regulatory developments, institutional initiatives, and progress in the integration of AI and crypto

Franklin Templeton Digital Assets released its 2025 Crypto Outlook, believing that the cryptocurrency sector may see key advances determined by regulatory clarity, institutional adoption, and technological development: • We believe this will be led by US regulators such as the SEC, supporting more diverse financial or investment products related to cryptocurrencies, such as ETFs or tokenized securities products; • Favorable regulation will make the United States a global center for cryptocurrency innovation again; • We will see major TradFi players and cryptocurrency infrastructure begin to intersect. The United States is expected to develop a stablecoin regulatory framework, which will open the door for major financial institutions to issue their own stablecoins; • The adoption of tokenized products and stablecoins will continue to expand and become a major driver of global DeFi growth; • Bitcoin will consolidate its position as a global financial asset for digital value storage, accelerated by sovereign and institutional adoption. We expect several countries to increase strategic BTC reserves; • Demand for DePIN will increase as industries prioritize decentralized, efficient solutions for real-world applications such as logistics and the Internet of Things (IoT); • We will see an acceleration in the convergence of AI and cryptocurrencies, with blockchain providing transparency and verification that will be critical to scaling an AI-driven economy; • AI agents will leverage blockchain rails to automate on-chain transactions and portfolio management, and merge digital content and social media with on-chain activities; • Overall, 2025 will mark a shift from speculation to utility as the underlying technology of cryptocurrencies becomes integral to the global financial and operational systems. Stakeholders should monitor regulatory developments, institutional initiatives, and advances in the convergence of AI and crypto to navigate this dynamic landscape.