Shift to Digital Asset Technology Won’t Be ‘Slow’ — Franklin…

Franklin Templeton CEO Jenny Johnson predicts a rapid shift to digital asset technology, citing blockchain’s compelling advantages over traditional finance. The firm, along with others like BlackRock and JPMorgan, is actively exploring crypto opportunities. However, concerns about potential risks linked to crypto ETFs and stablecoins are being voiced by some industry leaders, indicating a crucial moment for the sector.

In a recent opinion piece for Fortune, Jenny Johnson, the CEO of Franklin Templeton, shared her thoughts on the shift to digital asset technology, stating that it won’t be a sluggish transition. She highlighted the powerful advantages of blockchain, declaring, “We don’t foresee the shift to digital asset technology being slow or incremental.” Johnson, riding the growing wave of optimism from traditional financial institutions towards cryptocurrencies, also noted that our financial landscape could change more dramatically in the next five years than it has in the last 50.

Johnson raised important questions about the future of financial institutions in this rapidly evolving digital landscape. Will they embrace this new digital asset wave, resist the change, or simply ignore it? She argues that blockchain technology holds significant benefits over traditional financial frameworks, offering a range of new opportunities, like improved options for homeowners and seamless global market integration. Moreover, she envisions a future where transaction throughput could potentially reach hundreds of thousands or even millions per second.

Franklin Templeton stands out as a significant player in the digital asset space, managing an impressive $1.5 trillion in assets. They’ve been involved in this domain since 2021 with the launch of their OnChain US Government Money Fund. Recently, they also introduced a Bitcoin and Ether index exchange-traded fund, and they have expanded the accessibility of their tokenized money market fund across multiple blockchains such as Solana and Base. Adding to their digital advancements, this Tuesday, they rolled out a new feature that leverages blockchain for intraday yields.

Interestingly, the enthusiasm surrounding cryptocurrencies isn’t isolated to Franklin Templeton. Even giants like BlackRock, which oversees $11.6 trillion in assets, have jumped aboard. BlackRock has introduced Bitcoin and Ether exchange-traded funds (ETFs), with their iShares Bitcoin Trust holding $72.6 billion, making it the largest ETF in its segment. Meanwhile, JPMorgan Chase, which has been exploring the crypto waters since at least 2020, continues to make strides in this sector with plans to accept crypto ETFs for loans soon, as revealed in a recent report.

However, not everyone is welcoming this shift towards crypto in the traditional finance world. Klaas Knot, the outgoing Chair of the Financial Stability Board, expressed his concerns, stating that while crypto currently poses no risk to traditional finance, we might be nearing a tipping point. He particularly pointed out potential risks linked to crypto ETFs and stablecoins, signaling the need for careful monitoring as the boundary between traditional finance and crypto continues to blur.

In summary, Jenny Johnson of Franklin Templeton suggests that the transition to digital assets will be rapid and transformative, with blockchain capabilities far outpacing traditional finance. As major financial players like BlackRock and JPMorgan embrace cryptocurrencies, signs of significant change are evident in the industry. Still, caution remains due to concerns about risks associated with these new financial products, underscoring a delicate balance in this evolving landscape.

Original Source: cointelegraph.com