Traditional finance (TradFi) institutions are gearing up for a reboot of the financial system with the accelerated adoption of blockchain technology in 2024.
Recently, TradFi institutions have recognized the potential of blockchain and distributed ledger technology . Undoubtedly, this technology provides faster and more cost-effective transactions, prompting financial institutions to seek ways to leverage its power.
TradFi Institutions Re-Engineer Financial Market With Blockchain
Sandy Kaul, the head of digital asset and industry advisory services at Franklin Templeton, told Bloomberg :
“Adoption of the technology is actually accelerating very quickly. For the first time, you can really now see the pathway to us re-engineering the global financial markets ecosystem.”
Franklin Templeton is one of the world’s largest fund managers, with over $1.5 trillion in assets under management (AUM).
Earlier this year, it launched a mutual fund on the Polygon blockchain called the Franklin OnChain U.S. Government Money Fund (FOBXX) . As of November 30, 2023, the FOBXX has $329.38 million worth of total net assets.
Read more: What is a Layer-1 Blockchain?
Not to mention, Franklin Templeton filed for a spot Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC) on September 2023. As per BeInCrypto data , the SEC is expected to respond to the Franklin Templeton ETF filing between January 5 and January 10, 2024.
However, the final deadline falls on March 31, 2024.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Not just Franklin Templeton but many other TradFi institutions have plans to upscale their infrastructure around blockchain technology. Notably, one of the world’s largest banks – JPMorgan, has been using blockchain to enhance the transfer of payments.
The JPM Coin is available 24/7 to speed up US dollar payments between the banks’ clients. The screenshot below shows some of the initiatives carried out by notable TradFi institutions in 2023.
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