Nikolas Sargeant
Jenny Johnson, president and CEO of Franklin Templeton, a financial powerhouse managing $1.6 trillion in assets, reaffirmed her support for blockchain technology in a recent interview with Bloomberg's David Westland at the 27th Annual Milken Institute Global Conference in California.
Embracing Tokenization
When queried about Franklin Templeton's embrace of tokenization, Johnson expressed her enthusiasm for blockchain technology, highlighting a successful experiment where the company compared processing account records using traditional methods versus blockchain over several months. The blockchain approach proved significantly more cost-effective, leading Johnson to predict that eventually, all ETFs and mutual funds would transition to blockchain due to its efficiency and cost-saving potential.
Johnson emphasized blockchain's ability to provide a single source of truth, streamlining data verification processes among financial institutions. She illustrated the benefits with an example involving pop sensation Rihanna, who issued nonfungible tokens granting royalties to owners via smart contracts, showcasing blockchain's potential for diversified investment opportunities.
Assessing Generative AI
The discussion then turned to generative artificial intelligence, with Johnson acknowledging its utility while cautioning against its limitations. She compared it to a student excelling in one subject but faltering in another, indicating its uneven performance. Despite this, Franklin Templeton recently partnered with Microsoft to develop an AI-powered sales assistant, highlighting investment prospects in the field. Johnson also praised AI-powered translation services for their potential to overcome language barriers in finance.
