In 2024, traditional financial institutions plan to use Blockchain technology to restart the financial system

This article is brief:

• Traditional financial institutions are leveraging Blockchain technology to restart the financial system in 2024.

• Leading fund manager Franklin Templeton has launched mutual fund FOBXX on the Polygon Blockchain.

• Many TradFi institutions, including JPMorgan Chase, are upgrading their infrastructure around Blockchain technology.

Traditional financial (TradFi) institutions are preparing to accelerate the adoption of Blockchain technology to restart the financial system in 2024.

Recently, TradFi institutions have recognized the potential of Blockchain and Distributed Ledger technology. There is no doubt that this technology offers faster and more cost-effective transactions, prompting financial institutions to seek ways to harness its power.

TradFi Institution Redesigns Financial Markets with Blockchain

Sandy Kaul, head of digital asset and industry advisory services at Franklin Templeton, told Bloomberg:

"The adoption of this technology is actually accelerating at a rapid pace, and now you’re really seeing for the first time how we’re redesigning the global financial markets ecosystem. ”

Franklin Templeton is one of the largest fund managers in the world, with more than $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, FOBXX had total net assets of $329.38 million.

Franklin Templeton FOBXX Fund Information. Source: Official website

Not to mention, Franklin Templeton applied for an SpotBitcoin exchange-traded fund (ETF) with the US SEC (SEC) in September 2023. According to the data, the SEC is expected to respond to the Franklin Templeton ETF application in September 2023 on January 5 and January 10, 2024.

However, the final deadline is March 31, 2024.

Not just the Franklin Templeton Fund, but many other TradFi institutions are also planning to upgrade their infrastructure around Blockchain technology. It’s worth noting that JPMorgan Chase, one of the world’s largest banks, has also been using Blockchain to enhance payment transfers.

It is reported that JPM Coin is available 24/7, which can speed up the payment of US dollars between bank customers. The screenshot below shows some of the initiatives implemented by prominent TradFi institutions in 2023.

List of TradFi institutions with Blockchain plans. Source: Bloomberg

Do you have anything to say about the Blockchain ambitions of traditional financial institutions or anything else?