This is why Franklin Templeton is talking about blockchain technology.

Jenny Johnson, president and CEO of Franklin Templeton oversees the $1.6 trillion financial titan. She recently asserted the significant benefits of blockchain technology in asset management.

Speaking at the 27th annual Milken Institute Global Conference in California, Johnson expressed enthusiasm for blockchain's potential, particularly in promoting real-world assets.

Jenny Johnson believes that mutual funds and ETFs will soon come on the chain.

In her interview with Bloomberg, Johnson emphasized Franklin Templeton's innovative approach to using blockchain technology. She outlined the company's six- to eight-month trial of accounting records using traditional and blockchain methods.

“We were surprised at how much it costs to run on blockchain. It's a very efficient technology, and we think it will open up a lot of new investment opportunities. Eventually, I think exchange-traded funds (ETFs) and mutual funds will all be on blockchain,” Johnson said.

The CEO discussed financial services challenges related to data reconciliation across systems. This process is time-consuming and costly.

Blockchain provides a single source of truth for business transactions, significantly reducing costs and improving efficiency. This reduction in friction will pave the way for new investment opportunities.

Johnson also illustrated the blockchain's vast potential by referencing pop star Rihanna, who issued fungible tokens (NFTs) for her song royalties.

“So when Spotify plays a Rihanna song and you own that token, the smart contract can kick in. And the payment mechanism built into the blockchain can give you your fractions,” Johnson said.

Read more: Where to Buy Tokenized or Fractionalized Real Estate and Art

Franklin Templeton launched the Franklin OnChain US Government Fund (FOBXX) in 2021, tracking as the first US-registered fund to use the public blockchain to process transactions and record share ownership.

“I'm a big fan of blockchain and technology. We had the first SEC-approved money market fund, the SEC made us run a shareholder service system,” Johnson said.

Central to this innovation is the BENJI token. Running on the Stellar (XLM) and Polygon (MATIC) blockchains, these tokens represent a share of the FOBXX fund.

They include assets such as government securities, cash and repurchase agreements. They also offer a stable yield, which is very attractive to investors looking for reliable returns.

According to recent data from rwa.xyz, the BENJI token has a capitalization of 367 million dollars. This impressive figure puts it second only to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).

On April 25, Franklin Templeton expanded the functionality of BENJI tokens. Peer-to-peer transfers are now available on the public blockchain.

Read more: What is Tokenization on Blockchain?

Continuing its commitment to blockchain, the company launched a Bitcoin ETF in January, which has received modest net inflows of $351 million to date. Moreover, on February 13, Franklin Templeton applied for SEC approval for a spot Ethereum ETF integrating blockchain into its offerings.