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.