Blockchain technology and tokenization are transforming traditional asset management by enhancing operational efficiency, transparency, and real-time record-keeping. The concept of the “protocol economy” leverages cryptocurrencies to incentivize participants across decentralized networks, driving innovation and increasing network effects. This shift mirrors other major technological advancements like the internet and cloud computing. Franklin Templeton, a global investment management firm, began exploring blockchain in 2019 to assess its potential for operational efficiencies. The firm initially tested tokenizing a US government money market fund, which allowed for daily updates to shareholder records. However, the lack of suitable platforms for managing token securities led Franklin Templeton to develop its own solutions, including the Gemio wallet and Benji infrastructure stack. By early 2022, the firm launched its tokenized fund, FOBXX, managing over $700 million in assets on-chain. Through this journey, Franklin Templeton learned that blockchain ecosystems operate like digital nation-states, where participants are incentivized through native tokens. These tokens facilitate transactions and encourage developers to build applications on the network, fostering growth and engagement. The programmable nature of tokens enables seamless integration between decentralized applications, creating a dynamic and interconnected ecosystem. This decentralized model represents a shift toward an open-source, peer-to-peer economy, reducing reliance on intermediaries. Franklin Templeton believes these protocols will redefine economic operations and drive future growth, focusing its investments on token-based opportunities.
— new from The World Economic Forum
