Franklin Templeton CEO Foresees Blockchain's Future in ETFs and Mutual Funds
Summary:
Jenny Johnson, CEO of Franklin Templeton, underscored her support for blockchain technology during the 27th Annual Milken Institute Global Conference in California. She highlighted the significant cost savings of using blockchain from an experiment run by the company, predicting that ETFs and mutual funds could all shift to blockchain due to its data verification efficiencies. Johnson also touched upon the potential of generative AI, revealing a partnership with Microsoft to develop an AI-powered sales assistant, and emphasized its potential role in overcoming language barriers in finance.
In a recent discussion at the 27th Annual Milken Institute Global Conference in California, Jenny Johnson, the President and CEO of asset management firm Franklin Templeton, reiterated her support for blockchain technology. During her conversation with Bloomberg's anchor David Westland, she discussed a range of trending topics, emphasizing blockchain tokenization and generative artificial intelligence (AI).
When prompted about the advantages Franklin Templeton gained from tokenization, Johnson expressed her strong liking for blockchain and its technical capabilities. She narrated an instance where the organization conducted a dual experiment, processing accounts using traditional methods and blockchain over a span of six to eight months. According to Johnson, the results were strongly in favor of blockchain technology, owing to the significant cost savings.
Johnson was of the opinion that blockchain is an efficient technology with the potential to generate a myriad of new investment opportunities. She prognosticated that exchange-traded funds (ETFs) and mutual funds could eventually shift to the blockchain, mainly due to the excessive costs involved in verifying data across different systems – an issue that blockchain is inherently designed to address. Johnson also noted that even after data reconciliation within an organization, the need for external data verification still persists. However, blockchain offers a unified and reliable data source.
According to Johnson, the financial and time savings garnered from using blockchain can lead to more diversified investment opportunities. As an example, she mentioned the popular singer Rhianna issuing 300 non-fungible tokens (NFTs) that grant their owners a small share of royalties from one of her songs, facilitated by a smart contract. Johnson had referenced this story in a previous interview, where she described tokenization as "securitization on steroids".
The conversation next moved onto generative AI. Johnson recognized the usefulness of such systems but cautioned that it was similar to a student excelling in English but failing in math. Referring to a recent partnership with Microsoft to develop an AI-powered sales assistant, she touted the potential investment opportunities in the AI sector. She further appreciated the potential role of AI in overcoming language barriers in the finance industry.
Published At
5/11/2024 11:13:18 PM
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