Franklin Templeton CEO Jenny Johnson stated that Wall Street is hesitant to adopt blockchain technology because it threatens their existing profit models, particularly those reliant on transaction fees from intermediaries. She highlighted the cost-effectiveness of public blockchains, exemplified by the firm's tokenized money market fund, and noted that while investors may prefer regulated custodians, the shift towards digital assets is inevitable.
The insight for you is that Franklin Templeton is leveraging blockchain to cut costs in its tokenized money market fund, demonstrating a significant reduction in transaction fees by using Stellar's public blockchain. This move underscores the potential for fintech firms to capitalize on blockchain's efficiency, challenging traditional financial models and indicating a shift towards more cost-effective, on-chain financial services.