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Franklin Templeton predicts that several countries, including the US, will adopt strategic Bitcoin reserves.
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US-led regulations could spur new crypto products in 2025, bridging TradFi and crypto innovation.
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The crypto industry is expected to prioritize decentralized real-world applications in the new year, moving beyond speculative use.
As 2024 concludes, Franklin Templeton forecasts significant shifts in cryptocurrency dynamics, emphasizing Bitcoin reserves and regulatory developments for 2025.
Franklin Templeton Sees Bitcoin Becoming a Global Asset
The asset manager firmly believes that Bitcoin will continue to gain global adoption throughout 2025. This adoption will be accelerated by strategic BTC reserves in several countries, including the US. This prediction is reinforced by other major asset managers’ perspectives, indicating a broad trend.
For example, VanEck recently projected that the US could significantly cut its national debt by as much as 36% if it adopts a Bitcoin reserve strategy. Lawmakers from nations like Japan, Russia, and Poland have also shown openness towards a BTC reserve. While Bitcoin did not close 2024 above $100,000, the prevailing market sentiment for 2025 appears optimistic.
However, a recent report from Galaxy Research posits that the US government is unlikely to purchase Bitcoin outright in 2025. Yet, it suggests that Trump’s administration might consolidate its existing crypto holdings.
A Regulatory Shift in 2025?
Franklin Templeton argues that favorable regulation would position the US as a crypto global hub in the upcoming year. Historically, the US has lagged in the international crypto landscape, largely due to the SEC’s persistent scrutiny of the industry. However, the tide may be turning with a pro-crypto government expected to take office.
Notable developments include Ripple launching its RLUSD stablecoin and multiple ETF applications being filed, marking a shift towards greater institutional involvement in the sector.
“We believe this wave will be led by US regulators such as the SEC, enabling a greater range of diversified financial products associated with crypto, such as ETFs and tokenized security products,” stated Templeton.
The SEC’s impending leadership changes are crucial for delivering the clarity required to unlock new financial products in the crypto ecosystem. This evolution will likely encompass ETFs and tokenized securities, which offer safer and more diversified investment avenues. Furthermore, the investment firm predicts a more integrated partnership between traditional finance (TradFi) and crypto stakeholders in 2025.
“A stablecoin regulatory framework in the U.S. is anticipated and will facilitate major financial institutions in launching their own stablecoins,” the report highlighted.
Franklin Templeton also perceives that the Decentralized Physical Infrastructure Networks (DePin) sector will experience intensified demand in 2025. Multiple industries are expected to prioritize decentralized solutions for real-world applications. The firm emphasizes that the year will signify a shift from “speculation” to “utility,” as cryptocurrency technology increasingly integrates into the global economy.
Conclusion
As outlined, Franklin Templeton’s projections for 2025 indicate a transformative year for the cryptocurrency landscape. The anticipated regulatory advancements and rising interest in Bitcoin reserves could redefine the relationship between traditional finance and digital assets. With a clear emphasis on utility and decentralized applications, the industry appears poised for substantial evolution ahead.
