TradFi Underestimates Bitcoin’s Enormous Scale, Franklin Templeton CEO Says

As an analyst with over two decades of experience in traditional finance, my eyes have seen many transformations in the industry. However, the rapid rise and scale of Bitcoin has left me utterly astonished, especially considering how oblivious some traditional financial institutions still seem to be about its potential.

At JACKSON HOLE, WYOMING – Franklin Templeton CEO Jenny Johnson, who navigated the digital asset sector for her family-passed company since 2020, expresses astonishment at the lack of understanding among conventional financial institutions regarding Bitcoin‘s vastness.

During a chat at the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, Johnson shared that approximately one third of her regular tasks involve examining innovative technologies, with the aim being to prepare the company for the future.

As a forward-thinking crypto investor, I wouldn’t want to overlook the significant trend of digital assets, alongside artificial intelligence, which I believe are the two major, evident shifts in our technological landscape that I find intriguing and essential to be part of.

“It’s surprising to me that in conventional finance, they often lack information regarding the quantity of money and the trade volume for Bitcoin,” Johnson remarked.

As a researcher in 2023, I found that the Bitcoin blockchain handled an astounding volume of transactions totaling over $36.6 trillion. This remarkable figure is particularly noteworthy considering the challenging year the market had experienced prior. In comparison, global payment giants Mastercard and Visa processed $9 trillion and $14.8 trillion in transactions respectively during this same period.

Johnson stated, “We have an entire system that seems to disregard another colossal system operating alongside it.”

As a researcher, I’ve noticed that both Mastercard and Visa are not shying away from blockchain technology. In recent years, they have taken significant steps to integrate cryptocurrency payments into their networks. To be more specific, Visa has been running numerous trials to explore new product offerings and has collaborated with various crypto-focused companies such as Circle and Solana, aiming to strengthen its position in the blockchain domain. Mastercard, on the other hand, is venturing into the realm of blockchain by launching a debit card based on this technology.

Following the naming of Johnson as CEO, Franklin Templeton swiftly established itself as a pioneer among conventional asset management firms. In 2021, its OnChain U.S. Government Money Market Fund (FOBXX) made history by being the first fund to employ a public blockchain for transaction recording and ownership tracking.

As a seasoned investor with a keen interest in the burgeoning digital asset market, I have been eagerly awaiting news of a reliable and secure investment vehicle that would allow me to diversify my portfolio without having to navigate the complexities of individual digital asset purchases. This week’s announcement by the company about their proposal for an exchange-traded fund (ETF) trading under the ticker symbol EZPZ, which aims to provide investors with exposure to a range of digital assets and will be custodied by Coinbase, has caught my attention.