How Traditional Finance Institutions Plan to Utilize Blockchain Technology in 2024
Traditional finance (TradFi) institutions are gearing up for a reboot of the financial system with the accelerated adoption of blockchain technology in 2024.
Recently, TradFi institutions have recognized the potential of blockchain and distributed ledger technology . Undoubtedly, this technology provides faster and more cost-effective transactions, prompting financial institutions to seek ways to leverage its power.
TradFi Institutions Re-Engineer Financial Market With Blockchain
Sandy Kaul, the head of digital asset and industry advisory services at Franklin Templeton, told Bloomberg :
“Adoption of the technology is actually accelerating very quickly. For the first time, you can really now see the pathway to us re-engineering the global financial markets ecosystem.”
Franklin Templeton is one of the world’s largest fund managers, with over $1.5 trillion in assets under management (AUM).
Earlier this year, it launched a mutual fund on the Polygon blockchain called the Franklin OnChain U.S. Government Money Fund (FOBXX) . As of November 30, 2023, the FOBXX has $329.38 million worth of total net assets.
Read more: What is a Layer-1 Blockchain?
Not to mention, Franklin Templeton filed for a spot Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC) on September 2023. As per BeInCrypto data , the SEC is expected to respond to the Franklin Templeton ETF filing between January 5 and January 10, 2024.
However, the final deadline falls on March 31, 2024.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Not just Franklin Templeton but many other TradFi institutions have plans to upscale their infrastructure around blockchain technology. Notably, one of the world’s largest banks – JPMorgan, has been using blockchain to enhance the transfer of payments.
The JPM Coin is available 24/7 to speed up US dollar payments between the banks’ clients. The screenshot below shows some of the initiatives carried out by notable TradFi institutions in 2023.
Do you have anything to say about traditional finance institution’s blockchain ambitions or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok , Facebook , or X (Twitter).
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here .
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Fed report examines how crypto price changes impact ownership trends
Istanbul police arrest Omegapro managers for $4B crypto fraud
Elon Musk to lead Trump's government efficiency commission
Scottish court seizes $144,000 in first crypto confiscation
