Franklin Templeton CEO Jenny Johnson has highlighted that Wall Street's apprehension towards blockchain technology is primarily due to its potential to disrupt existing profit models. Speaking at the Proof of Talk summit in Paris, Johnson explained that blockchain's ability to facilitate instant settlements via smart contracts could eliminate the need for banks to act as intermediaries, thereby reducing transaction fees. She cited her company's tokenized money market fund, Benji, which operates on the Stellar blockchain, as an example of cost efficiency, noting a reduction in transaction costs from $1.30 to $1.13 per transaction.
Johnson also noted that while blockchain presents cost-saving opportunities, ordinary investors still favor regulated custodians, ensuring a continued role for banks and custodians. The transition of institutional wealth to digital assets will hinge on creating standardized, low-cost, and compliant pathways for traditional investment funds.
Franklin Templeton CEO Highlights Blockchain's Threat to Wall Street Profits
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