Franklin Templeton CEO Jenny Johnson has forecasted a rapid and transformative shift to digital asset technology within the next five years, driven by the compelling advantages of blockchain. Emphasizing blockchain's potential, Johnson highlighted the significant evolution expected in the financial industry, propelled by supportive U.S. policy changes that facilitate growth in blockchain adoption and digital assets.
Franklin Templeton is actively expanding its digital asset offerings, having launched Bitcoin (BTC) and Ether (ETH) index exchange-traded funds (ETFs) as well as tokenized U.S. government money market funds on blockchains like Solana and Base. This strategic move reflects the firm’s commitment to blockchain-based innovation as part of its $1.5 trillion assets under management.
The shifting regulatory landscape includes SEC revisions that now enable banks to provide custody services for digital assets, potentially increasing institutional investment flows into compliant crypto assets. The firm sees this as a market reshaping factor that could cause the industry to evolve more in the next five years than it has in the past fifty. BlackRock’s precedent of introducing Bitcoin and Ether ETFs, with its iShares Bitcoin Trust managing $72.6 billion, is cited as a key influence on current market trends.
Other major traditional financial institutions such as JPMorgan Chase are also increasing their crypto exposure, with developments like accepting crypto ETFs as loan collateral and enabling clients to buy Bitcoin, although custody services remain absent.
Despite growing enthusiasm, caution persists. Klaas Knot, outgoing Chair of the Financial Stability Board, warned of potential tipping points linked to crypto ETFs and stablecoins, signaling regulatory and financial system concerns.