As the asset management industry accelerates its transition to on-chain infrastructures, analysts are drawing attention to mounting pressure on the traditional revenue streams of legacy finance. Speaking at the Proof of Talk summit in Paris, Franklin Templeton CEO Jenny Johnson emphasized that the reluctance around decentralized networks often stems from a perceived direct threat to existing business models.
Traditional revenue models under pressure
Johnson, who oversees the management of $1.74 trillion in assets at Franklin Templeton, pinpointed profitability as the key reason major financial institutions take a cautious approach toward public blockchain platforms. She argued that especially those firms acting as intermediaries in transactions now face the risk of losing significant income due to the efficiency offered by new digital architectures.
Jenny Johnson explained that this technology threatens several business models currently dominating traditional finance and that industry hesitation is largely rooted in these concerns.
Johnson detailed how, if a blockchain can instantly settle an exchange via smart contracts, large banks will see their areas for collecting transaction fees as third-party intermediaries dramatically shrink. In this sense, she framed public blockchain networks not just as a technical leap forward, but also as a catalyst that is fundamentally reshaping how market revenues are shared.
Mini glossary: A smart contract is a blockchain-based code structure that automatically executes transactions when certain conditions are met. A custody institution refers to an authorized financial entity that securely holds and protects investors’ assets.
Cost reduction and the Benji case study
While crypto-focused networks have long championed open architecture, a growing number of traditional finance firms are now also exploring public networks thanks to significant cost advantages. Using Franklin Templeton’s tokenized money market fund Benji as an example, Johnson shared results that highlight the ongoing shift. As one of the world’s largest asset managers, Franklin Templeton has doubled down on digital asset products in recent years.
According to Johnson, in the old system, each of 50,000 transactions cost an estimated $1.30. When the same operation was executed on the Stellar blockchain, the per-transaction cost dropped to around $1.13. This difference is strengthening arguments in favor of blockchain’s enterprise efficiency.
| System | Number of transactions | Cost per transaction |
|---|---|---|
| Legacy system | 50,000 | $1.30 |
| Stellar blockchain | 50,000 | $1.13 |
Johnson stated that compared to the legacy model, costs have clearly declined, making Stellar the cheaper option for the company.
MoonPay partnership and the role of custodians
Johnson’s reference to the Benji example coincided with Franklin Templeton announcing a new strategic move in its digital asset roadmap. The Wall Street-based asset manager has partnered with MoonPay to enable institutional investors to move between stablecoins and the firm’s tokenized money market fund via direct on-chain workflow.
However, Johnson stressed that not all traditional financial intermediation roles will disappear. She remarked that individuals and businesses alike still need trusted third parties in their financial lives. Keeping assets directly in personal wallets or physical vaults may not be suitable or desirable for everyone, which, she believes, means that custodians and banks will continue to have relevance in the changing landscape.
