Fortune Global Forum: CEO of Franklin Templeton Discusses Blockchain and Cryptocurrency
At the Fortune Global Forum, I had the privilege of speaking with Jenny Johnson, the president and CEO of Franklin Templeton, a global investment giant with over $1.3 trillion in assets under management. Among the top financial firms, Franklin Templeton has been at the forefront of exploring blockchain technology. In 2021, it launched the first U.S.-registered mutual fund to use a public blockchain to process and record transactions, as well as crypto-focused separately managed accounts.
Blockchain’s Role in Franklin Templeton’s Strategy
Johnson discussed the role of blockchain technology in her firm’s long-term success and how it will help democratize markets. According to Johnson, blockchain technology will enable access to things like private markets and democratize private markets. The technology will reduce the frictional costs associated with processing transactions and make the ownership of hard-to-process assets much easier. She also emphasized that blockchain technology will unlock non-traditional, non-correlated types of asset classes that will be of interest to the firm’s clients.
Filing for a Bitcoin ETF and Future Plans
Johnson touched on the firm’s application for a Bitcoin ETF and expressed optimism about the future approval. She highlighted that it would be a better way for anyone interested in investing in Bitcoin and may see significant interest from clients once approved. When asked about the future of blockchain- or crypto-related products, Johnson mentioned that Franklin Templeton does see these opportunities and is looking to deliver its expertise in whatever vehicle their clients would like them to. The firm has also ventured into the world of NFTs and issued some to attendees at the firm’s Innovation Forum last year.
Personal Interest in Cryptocurrency
Johnson revealed that she does have investments in cryptocurrency, with a portfolio that includes standard picks like Ethereum, Bitcoin, SushiSwap, and Uniswap. She also shared her cautious approach to Bitcoin investments, highlighting the challenge of anchoring it to any investment thesis and its risk-on/risk-off nature.
Implications for Wealth Management Sector
When asked about the potential for other wealth managers to launch blockchain- or crypto-related products, Johnson explained that ETFs may not tend to be big in the retirement channel but acknowledged the opportunities that blockchain technology presents in the space. She also mentioned the firm’s success with its tokenized U.S. money-market fund, which has already seen significant inflows.
In conclusion, Johnson’s insights into blockchain and cryptocurrency reveal a forward-thinking approach to embracing emerging technologies and the potential impacts they can have on the investment landscape. Her comments signal a growing interest in leveraging blockchain technology to democratize markets and unlock new investment opportunities.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.