HomeBlockchainFranklin Templeton's Investment in Blockchain Technology: Here's Why

Franklin Templeton’s Investment in Blockchain Technology: Here’s Why

-


Jenny Johnson’s Vision for Blockchain Technology in Asset Management

Jenny Johnson, the President and CEO of Franklin Templeton, is leading the charge in embracing blockchain technology in asset management. With Franklin Templeton overseeing a financial titan with $1.6 trillion in assets, Johnson recently highlighted the significant benefits of blockchain technology during her speech at the 27th Annual Milken Institute Global Conference in California.

Johnson expressed her excitement for blockchain’s potential, particularly in tokenizing real-world assets. She shared Franklin Templeton’s innovative approach to utilizing blockchain technology, citing a successful experiment where the company processed account records using both traditional and blockchain methods. The results showed a significant cost reduction when using blockchain, leading Johnson to believe that mutual funds and ETFs will soon be on-chain.

One of the key advantages of blockchain technology that Johnson emphasized is its ability to provide a single source of truth for transactions, reducing costs and improving efficiency in the financial services industry. This reduction in friction opens up new investment opportunities and streamlines processes like data reconciliation across systems.

Johnson also illustrated blockchain’s broader potential with a reference to pop superstar Rihanna, who issued non-fungible tokens (NFTs) for royalties from her songs. This example showcases how blockchain technology can revolutionize payment mechanisms and create new revenue streams for artists and investors alike.

Franklin Templeton’s commitment to blockchain innovation is evident in the launch of the Franklin OnChain US Government Money Fund (FOBXX) in 2021, the first US-registered fund to use public blockchain for processing transactions and documenting share ownership. The fund’s BENJI token, operating on the Stellar (XLM) and Polygon (MATIC) blockchains, uniquely represents shares of the FOBXX fund and offers a stable yield attractive to investors.

With the BENJI token’s market capitalization reaching $367 million, Franklin Templeton continues to expand its blockchain offerings. The company recently enabled peer-to-peer transfers of BENJI tokens on the public blockchain, further integrating blockchain technology into its operations.

In January, Franklin Templeton launched a Bitcoin ETF, garnering modest net flows of $351 million to date. The company also sought SEC approval for a spot Ethereum ETF in February, solidifying its commitment to embracing blockchain technology in asset management.

Overall, Jenny Johnson’s advocacy for blockchain technology underscores the transformative potential it holds for the financial services industry and asset management sector. As Franklin Templeton continues to innovate and expand its blockchain offerings, the future of asset management looks increasingly decentralized and efficient.

LATEST POSTS

Sony Group makes strategic move into cryptocurrency market with acquisition of Amber Japan

Sony Group Enters Crypto Exchange Market with Acquisition of Amber Japan Sony Group Makes Bold Move into Crypto Exchange Market with Acquisition of Amber Japan In...

Solana Surpasses Ethereum in Important Metric

Top Solana-based DEXes Lead in Daily Trading Volume, Surpassing Ethereum Solana-based decentralized exchanges (DEXes) are making waves in the cryptocurrency market, with five of them...

Investors May Need to Pay Taxes in Bitcoin Sooner Than Expected

Crypto Payments for Taxes: A Closer Look at the Potential Changes Ahead The possibility of paying taxes with cryptocurrency, specifically bitcoin, is gaining traction in...

Pepe Unchained: Layer 2 Blockchain Drives Meme Coin Surge Through Successful Presale

Pepe Unchained: Revolutionizing the Meme Coin Market with Layer 2 Blockchain Technology The Pepe meme is back in the spotlight with the launch of Pepe...

Most Popular