Franklin Templeton CEO Jenny Johnson has recently emphasized that the transition to digital asset technology is expected to be rapid rather than gradual. This aligns with a growing positive sentiment within traditional finance (TradFi) towards cryptocurrencies and blockchain technologies. Johnson's perspective underscores the belief that the integration of digital assets into the financial system is not just a future possibility, but an accelerating trend.

Johnson is an outspoken advocate for blockchain innovation. She has previously stated her conviction that eventually, all exchange-traded funds (ETFs) and mutual funds will exist on the blockchain. A primary reason for her support is the potential for significantly lower data processing costs and the emergence of novel use cases. Franklin Templeton even conducted an experiment comparing traditional data processing systems with blockchain-based systems, and the results highlighted the drastic cost reductions achievable through blockchain technology.

According to Johnson, the current wave of Bitcoin investment represents only the "first wave of early adopters." She anticipates a second, much larger wave of institutional investment as previously hesitant investors and fund managers become more comfortable with digital assets and their underlying technologies. This suggests that the full potential of institutional involvement in the crypto market has yet to be realized.

Franklin Templeton, under Johnson's leadership, has been actively exploring ways to expand its digital asset investment strategies. The company has already launched crypto-focused separately managed accounts (SMAs). One SMA invests in 10 to 15 of the largest digital assets, excluding stablecoins and meme coins, while another takes a similar approach with capped allocations for Bitcoin and Ether. These products reflect the increasing institutional demand for streamlined processes to invest in the digital asset space.

Roger Bayston, Franklin Templeton's segment lead, views digital assets as "frontier risk alternatives." He believes that the mass adoption of digital assets begins with the tokens themselves, and their inclusion in investment portfolios will pave the way for other blockchain technology use cases. Bayston highlighted two broad themes that digital assets bring to investment management: expanding investment options to include blockchains and bringing assets on-chain and creating operational efficiencies across traditional asset management processes.

Franklin Templeton has been proactive in the digital asset space since 2018, building blockchain-based technology solutions, developing investment strategies, and running node validators. Jenny Johnson was also recognized in CoinDesk's Most Influential list for her impact on the crypto world in 2023. Franklin Templeton believes that the journey to mass adoption of digital assets is similar to the proliferation of new technologies in the 1990s and early 2000s.