Traditional Finance Institutions Embrace Blockchain Technology
Traditional finance institutions are recognizing the potential of blockchain and distributed ledger technology to revolutionize the financial system. These technologies offer faster and more cost-effective transactions, prompting financial institutions to explore ways to leverage their power.
Re-Engineering the Financial Market with Blockchain
Sandy Kaul, the head of digital asset and industry advisory services at Franklin Templeton, believes that the adoption of blockchain technology is accelerating rapidly. She states that this technology paves the way for re-engineering the global financial markets ecosystem.
Franklin Templeton, one of the world’s largest fund managers, has already launched a mutual fund on the Polygon blockchain called the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund has amassed $329.38 million in total net assets as of November 30, 2023.
Franklin Templeton’s Bitcoin ETF Filing
In addition, Franklin Templeton has filed for a spot Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). The SEC is expected to respond to the filing between January 5 and January 10, 2024, with a final deadline of March 31, 2024.
Blockchain Initiatives by TradFi Institutions
JPMorgan, one of the world’s largest banks, has been using blockchain technology to enhance payment transfers through its JPM Coin. Other traditional finance institutions have also made plans to upscale their infrastructure around blockchain technology.
Hot Take: Traditional Finance Embraces Blockchain for a Financial System Reboot
The accelerated adoption of blockchain technology by traditional finance institutions signals a significant shift in the financial system. With faster and more cost-effective transactions, blockchain has the potential to re-engineer the global financial markets ecosystem. As institutions like Franklin Templeton and JPMorgan embrace this technology, we can expect to see further advancements and innovations in the coming years.
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