Franklin Templeton CEO: Wall Street slow on blockchain as it threatens revenue models

Franklin Templeton CEO Jenny Johnson stated that traditional financial institutions are reluctant to adopt public blockchains because the technology threatens their existing revenue models. She added that if smart contracts can process payments instantly, the transaction fee income that large banks have received as intermediaries could disappear. Johnson noted that Franklin Templeton's tokenized money market fund, Benji, operates on the Stellar blockchain. While the legacy system cost $1.30 per 50,000 transactions, the cost on Stellar was just $1.13. She suggested that the current roles of banks and custodians could continue, as retail investors still prefer regulated entities. However, Johnson concluded that the cost-saving effects of blockchain demonstrate its potential to replace traditional financial infrastructure.