In an opinion article published in Fortune, the CEO of Franklin Templeton, Jenny Johnson, wrote that the “advantages of the blockchain are so convincing that we do not plan to pass the technology of slow or progressive digital assets”, echoing the growing positive feeling that certain traditional financial institutions have to crypto.
“Indeed, we expect our industry to evolve more over the next five years than in the last 50,” said Johnson. “The urgent question is whether financial institutions will choose to adopt the wave of digital assets (and the disturbance that comes with it), actively fight it or bury the head in the sand.”
https://www.youtube.com/watch?v=n4biuyfda5a
Johnson noted that blockchain technology and the growing cryptosphere have many advantages that traditional financial rails have trouble matching. These include new financial options for the owners, the integration of world markets and, possibly, the flow that could reach hundreds of thousands, even millions of transactions per second.
Franklin Templeton, one of the largest asset managers in the world with 1.5 Billion of Dollars in Management (AUM), has been involved in digital assets for at least 2021 when it launched its US government monetary fund.
The company has launched a negotiated fund in exchange for Bitcoin (BTC) and Ether (ETH) indices and brought its US government monetary market to different block chains, including Solana and Base. On Tuesday, he started an intra -day performance functionality that uses blockchain technology.
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Traditional financial institutions are launching cryptography products
Traditional financial institutions are becoming more and more enthusiastic about the crypto, identifying opportunities to earn money (and themselves).
Blackrock, the largest asset manager in the world with 11.6 billions of dollars AUM, launched Bitcoin and Ether Exchangers (ETF) funds and has been talking to the United States of various subjects. Us Spot Bitcoin ETF from BlackRock, Ishares Bitcoin Trust (IBIT), is the largest in its class, containing $ 72.6 billion in net assets.
JPMorgan Chase has been in crypto at least since 2020 when it launched its JPM play, a stable coin in a dollars. On June 4, a report indicated that the institution would soon begin to accept cryptographic ETF as guaranteed for loans. On May 20, JPMorgan CEO Jamie Dimon said that business customers could soon buy Bitcoin, although the company did not keep it.
However, not everyone is satisfied with the growing links between crypto and traditional finance. Thursday, the outgoing president of the board of directors of financial stability, Klaas Knot, warned that even if the crypto does not yet pose a risk for traditional finances, “we can approach a tilting point here.” According to Knot, concern areas include Crypto ETF and Stablecoins.
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