TL;DR
Franklin Templeton to launch native mutual fund on Solana blockchain
The firm built its own infrastructure for asset management on blockchain.
Solana experiences a significant increase in price following the announcement, reaching $150.64.
In a move that merges traditional finance with innovative blockchain technology, Franklin Templeton, an asset manager with $1.5 trillion in assets under management, has announced its intention to launch a native mutual fund on the Solana blockchain.
This revelation was made during the Solana Breakpoint 2024 event in Singapore, where Mike Reed, the firm’s leader of partnership development, highlighted the importance of blockchain as a driver of efficiency in financial services.
Franklin Templeton‘s approach is no coincidence.
The choice of a money market fund for this launch is because these funds are deeply integrated into the transactional economy, making them an ideal candidate to take advantage of the benefits of blockchain.
Reed explained that by using the blockchain, his goal is to maximize the number of entries in the ledger, which is essential to optimizing the fund’s operations.
Furthermore, the firm decided to go beyond simply adopting external technology.
Instead of hiring a vendor for tokenization, Franklin Templeton developed its own infrastructure, creating a system of digital wallets and an on-chain transfer agent.
This strategy ensures that the token issuance process is authentic and efficient, allowing the record of ownership to be directly linked to the token in the user’s wallet.
The future of finance in blockchain
Franklin Templeton‘s ambition is not limited to this one fund.
Throughout 2024, the firm has explored other initiatives in the cryptocurrency space, such as Bitcoin and Ethereum ETFs.
While there is no Solana ETF in the works yet, the possibility is clearly on the horizon.
This reflects a growing interest from financial institutions in adopting blockchain solutions, especially those that offer fast and low-cost transactions.
Reed’s presentation at the event also highlights a significant shift in perceptions of blockchain use in the financial space.
As more institutions adopt this technology, we are likely to see an evolution in how assets are managed and transactions are conducted.
The speed and efficiency of blockchain could transform not only the way funds like Franklin Templeton operate, but the entire financial landscape.
On the other hand, the price of Solana has seen a notable increase, reaching $150.64, a growth of 8.35% in a single day.
This surge not only reflects the market reaction to Franklin Templeton’s announcement, but also the growing recognition of Solana as a viable platform for mass blockchain adoption in the financial sector.
In this context, it is clear that the future of finance could be more closely linked to blockchain than many imagine.
