During the Consensus 2024 event that was held in Austin, Texas, the president and CEO of Franklin Templeton, Jenny Johnson stated her opinion about the specifics of blockchain technology and how it can affect TradFi. Franklin Templeton is a big investment company managing properties with a total value of $1. Of $ 6 trillion in assets, it has been eager to venture into the digital asset industry.
Blockchain’s Transformational Potential
According to Johnson, blockchain technology is referred to as transformational because of certain features, including command of operational expenses. She also noted that Franklin Templeton has approximately 30 validator nodes on 12 blockchains among which are Ethereum (ETH), Cardano (ADA), Stellar (XLM), and Provenance. This participation goes beyond what is posted on the company’s website which currently lists seven networks including Polkadot (DOT) and Solana (SOL).
Efficiency Through RWA Tokenization
Johnson pointed out the Following as the Major Benefits of Blockchain Technology; efficient recording and reconciliation of transactions. Such transfers based on traditional financial systems need a considerable number of people to match the data between systems and with the trading partners. On the same note, blockchain has a single “source of truth” and records the timing of the transaction better thus, reducing administration and cost.
Johnson also stated that Franklin Templeton has been at the forefront of tokenization, a process of buying and building funds and bonds that exist in the physical world on digital ones. They also ventured into the money market fund in 2021, becoming the first from the Stellar network before other large firms such as BlackRock.
Bitcoin and Ethereum ETFs
Franklin Templeton is also at the forefront of cryptocurrency investment products. The company is one of the 11 firms approved to list spot-based bitcoin exchange-traded funds (ETFs) in the U.S. and is awaiting approval for a similar product for Ethereum (ETH). Johnson noted that many people are drawn to Bitcoin as a secure asset outside the traditional banking system and resistant to government seizure. ETFs provide a regulated and familiar way for investors to gain exposure to cryptocurrencies.
“For me, it’s a vehicle of choice,” Johnson said, emphasizing that the regulated nature of ETFs makes many investors more comfortable with entering the crypto space.
Conclusion
Franklin Templeton‘s proactive approach to blockchain and digital assets reflects the broader trend of traditional finance integrating with emerging technologies. Franklin Templeton aims to stay ahead in the evolving financial landscape by leveraging blockchain for efficiency and exploring cryptocurrency ETFs.
