Jenny Johnson, President and CEO, Franklin Templeton has long been a blockchain fan. “Eventually I think ETFs and mutual funds are all going to be on blockchain,” she told Bloomberg TV last week. The asset manager issued a money market fund on blockchain, which was the largest blockchain-based treasury fund until last week. The Franklin Onchain US Government Money fund has a market capitalization of $367 million and more than four hundred token holders. It was recently pushed into second spot by BlackRock’s institutionally targeted BUIDL fund.
Ms Johnson spoke about the benefits of blockchain. She discussed how the SEC required the asset manager to run the blockchain-built record of shareholders alongside their existing in-house system for six to eight months. “We were astonished about how less costly it was to run it on blockchain. It’s a very efficient technology,” she said.
While this sort of benefit sounds like it would appeal mainly to accountants, it impacts most businesses, especially anything involving transactions. She went on to explain how it reduces the need for counterparties to reconcile because everybody shares the same single source of data.
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