Key facts
- Franklin Templeton CEO Jenny Johnson believes public blockchains threaten Wall Street's fee-based revenue models.
- Johnson stated that banks and intermediaries risk losing income as smart contracts handle functions at lower costs.
- Franklin Templeton's tokenized money market fund, Benji, demonstrated cost savings using the Stellar blockchain.
- Franklin Templeton partnered with MoonPay for an on-chain workflow allowing institutional investors to move between stablecoins and tokenized funds.
- Franklin Templeton launched the Franklin Bitcoin ETF (EZBC) and offers a Bitcoin/Ethereum separately managed account.
- Franklin Templeton plans to acquire 250 Digital to form Franklin Crypto for active cryptocurrency investment strategies.
Franklin Templeton CEO Jenny Johnson believes that public blockchains pose a threat to the fee-based revenue streams of traditional financial institutions, rather than their core technology. Speaking at the Proof of Talk summit, Johnson explained that banks and intermediaries risk losing income as smart contracts can perform settlement functions at a significantly lower cost. She cited Franklin Templeton's tokenized money market fund, Benji, which demonstrated cost savings by processing transactions on the Stellar blockchain at $1.13 per transaction, compared to $1.30 on their legacy system. The firm has also partnered with MoonPay to facilitate on-chain workflows for institutional investors moving between stablecoins and tokenized funds. Franklin Templeton has been actively involved in digital assets since 2018, launching the Franklin Bitcoin ETF (EZBC) and a Bitcoin/Ethereum separately managed account. The firm also plans to acquire 250 Digital to establish Franklin Crypto, focusing on institutional-scale cryptocurrency investment strategies, with BENJI tokens used in the acquisition payment.