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Franklin Templeton eyes blockchain integration, refiling Bitcoin ETF

EditorAmbhini Aishwarya
Published 04/12/2023, 12:52
© Reuters.
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ABU DHABI - At the Fortune Global Forum in Abu Dhabi today, Jenny Johnson, CEO of Franklin Templeton, announced the asset management firm's strategic move to integrate blockchain technology into its financial services. The firm, which oversees assets worth $1.3 trillion, has submitted an updated S-1 proposal for a Bitcoin Exchange-Traded Fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The proposed ETF is designed to be listed on the New York Stock Exchange's Arca platform and will utilize both in-kind and cash mechanisms to meet regulatory compliance.

Johnson highlighted the company's focus on leveraging blockchain's potential beyond Bitcoin, particularly for tokenizing financial transactions to enhance efficiency and cost-effectiveness. The CEO also shared her personal investment stance, revealing she holds digital currencies including Ethereum and Bitcoin.

The SEC's request for public feedback on Franklin Templeton's September application for a Bitcoin spot ETF signals a constructive dialogue between regulators and the financial industry regarding cryptocurrencies. This move by the SEC is seen as a step toward embracing digital assets within established markets.

In the broader context of blockchain innovation, Johnson pointed to recent developments such as Cardano’s AI chatbot Girolamo and Ethereum co-founder Vitalik Buterin’s concept of SoulBound Tokens. These advancements illustrate the convergence of blockchain technology and artificial intelligence, suggesting a future where blockchain extends beyond traditional financial applications.

Franklin Templeton remains agile in navigating the dynamic landscape of blockchain and digital assets while maintaining a positive outlook on the transformative impact a Bitcoin ETF could have on its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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