Jenny Johnson, the CEO and President of Franklin Templeton, a financial firm with $1.6 trillion in assets under management, recently reiterated her pro-blockchain stance. During an interview at the 27th Annual Milken Institute Global Conference, Johnson discussed the benefits of tokenization and generative artificial intelligence (AI).
When asked about Franklin Templeton’s experience with tokenization, Johnson enthusiastically stated, “First of all, I am a huge fan of blockchain and the technology.” She described an experiment where the company processed account records using both traditional methods and blockchain for several months. According to Johnson, the blockchain approach proved to be significantly less costly.
“It’s a very efficient technology, and we think it’s going to open up a lot of new investment opportunities. And, honestly, eventually, I think ETF and mutual funds are all going to be on blockchain,” Johnson asserted. She attributed this prediction to blockchain’s ability to solve the “huge costs” associated with verifying data between disparate systems and external parties, providing a single source of truth.
Regarding generative AI, Johnson acknowledged its usefulness but warned that it was “kind of like the kid who gets an ‘A’ in English and an ‘F’ in math.” She mentioned Franklin Templeton’s recent partnership with Microsoft to build an AI-powered sales assistant and highlighted the potential for AI-powered translation services in finance.
Overall, Johnson’s comments underscore Franklin Templeton’s commitment to exploring emerging technologies like blockchain and AI to drive innovation and efficiency in the financial services industry.
