Jenny Johnson, the CEO of Franklin Templeton, believes that the Bitcoin investment cycle is still in its early stages and that significant institutional investments have yet to be fully realized in this asset class.
In a recent interview with CNBC, Johnson emphasized that the current wave of early adopters is just the beginning, with much larger institutions expected to enter the market in the future. She pointed out that as more investors and fund managers become comfortable with digital assets and their underlying technologies, institutional interest will continue to grow.
Johnson, a strong advocate for blockchain innovation, has previously stated her belief that all exchange-traded funds and mutual funds will eventually migrate to the blockchain. She sees lower data processing costs and new use cases as the key drivers for the adoption of blockchain technologies and digital assets.
In an experiment conducted by her firm, Johnson’s team was surprised by the significant cost savings achieved by using blockchain systems for data transmission compared to traditional processing systems. She also highlighted the novel use cases for digital assets, such as Rihanna’s tokenization of royalty rights for her song “B-tch Better Have My Money” using nonfungible tokens (NFTs).
The potential for tokenization to revolutionize traditional securitization processes was not lost on Johnson, who described it as “securitization done on steroids.” She emphasized the ability of digital assets to increase liquidity and unlock hidden value in tangible assets and digital property rights.
Furthermore, Johnson sees these technologies as a means to broaden access to non-financial assets, such as collectibles, memberships, and subscriptions, through NFTs and other tokens. This could potentially create new asset classes and markets, opening up new opportunities for investors.
Overall, Johnson’s vision for the future of digital assets and blockchain technology is one of vast potential and innovation, with the power to transform traditional financial systems and unlock value in previously untapped areas.