Jenny Johnson, CEO of Franklin Templeton, is categorical: traditional financial institutions are far from grasping the scale of the Bitcoin phenomenon. As the head of one of the world's largest asset management companies, Johnson says she is "shocked" by these firms' lack of understanding of the colossal volume represented by Bitcoin. She expressed this opinion at the Wyoming Blockchain Symposium in Jackson Hole.
Since taking over the reins of the family business in 2020, Johnson has devoted around 30% of her time to studying disruptive technologies. "My main focus is on positioning the company for the next generation," she explains. Among the major trends she sees as inevitable are digital assets and artificial intelligence. In her view, these areas represent opportunities that should not be missed.
In 2023, Bitcoin's blockchain recorded more than USD36.6 billion in transactions, an impressive figure that far exceeds those of Mastercard and Visa, which processed USD9 billion and USD14.8 billion respectively. "What's crazy to me is that in traditional finance, they have no idea how much money and volume [Bitcoin] has," said Johnson. She points out that this phenomenon exists alongside a conventional financial ecosystem, which the giants are almost completely unaware of.
Contrary to what you might think, Mastercard and Visa are not standing still in the face of the rise of blockchain. In recent years, these companies have integrated cryptocurrency payments into their networks. Visa, in particular, is ramping up trials to test new product offerings and is working with crypto-native companies such as Circle and Solana. Mastercard, meanwhile, is launching a blockchain-based debit card.
Under Johnson's leadership, Franklin Templeton has quickly established itself as a leader among traditional asset managers when it comes to blockchain. In 2021, its OnChain U.S. Government Money Market Fund (FOBXX) became the first to use a public blockchain to record transactions and ownership. More recently, the company filed a proposal with the Securities and Exchange Commission to launch a new exchange-traded fund, under the symbol EZPZ, which would expose investors to a range of digital assets. Coinbase would be the custodian of this fund.
With these initiatives, Franklin Templeton is clearly demonstrating its intention not to miss out on the digital revolution, a movement that traditional finance can no longer ignore.
