FinanceShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailFranklin Templeton's CEO Claims Blockchain Poses a Threat to Wall Street Profits
Jenny Johnson, Franklin Templeton's CEO, asserted that blockchain and cryptocurrency endanger numerous business models in the traditional finance sector.
By Olivier Acuna|Edited by Omkar Godbole Jun 3, 2026, 7:04 a.m. 2 min readMake preferred on
Blockstream's Adam Back and Franklin Templeton's Jenny Johnson participated in a Proof of Talk panel in Paris 2026. (Olivier Acuna/CoinDesk)Key Insights:
- Jenny Johnson, CEO of Franklin Templeton, remarked that leading financial institutions are hesitant to embrace public blockchains as these technologies threaten their profitable fee-based business models reliant on transaction intermediation.
- She highlighted the firm's tokenized money market fund, Benji, to illustrate how transactions on public networks like Stellar can be significantly cheaper than traditional systems, prompting conventional players to transition on-chain.
- Although recognizing that bitcoin allows for self-custody and privacy, Johnson argued that most investors will still prefer regulated custodians and standardized, low-cost compliance mechanisms as institutional wealth migrates into digital assets.
The evolution of asset management is increasingly moving on-chain, revealing a significant structural tension regarding traditional corporate revenue streams.
During her remarks at the Proof of Talk summit in Paris, Jenny Johnson, CEO of the $1.74 trillion asset management firm Franklin Templeton, spoke candidly about the reluctance within the industry to adopt decentralized networks. Johnson stated that major financial institutions are slow to adapt because the public blockchain framework poses a direct threat to their profitability.
"This technology threatens a huge number of business models that exist today in traditional finance," Johnson expressed. "If you notice any hesitation, it’s because there is a threat to the business model. Consider those who collect tolls in a transaction."
She elaborated that if a blockchain could facilitate instantaneous settlement through smart contracts, large banks would lose their ability to charge transaction fees as intermediaries.
While blockchain networks favor open systems, traditional financial entities are beginning to adopt public networks due to the substantial efficiencies in transactions. To illustrate this point, Johnson referenced Franklin Templeton's experience with its tokenized money market fund, Benji, operating on public networks.
"It was significantly cheaper," Johnson noted, providing internal data. "It cost us around $1.30 per transaction for 50,000 transactions on the previous system, compared to about $1.13 on the Stellar blockchain."
Johnson's reference to Benji came shortly after the firm announced its expansion into digital assets through a partnership with MoonPay, enabling institutional investors to exchange stablecoins with the asset manager's tokenized money market fund via an on-chain process.
"In daily life, whether individual or enterprise, we seek a trusted party," Johnson emphasized. "We do not wish to store our assets in private wallets or at home. We want to delegate this sense of security to a third party, which is why custodians and banks are likely to remain relevant."
The transition of institutional wealth into digital assets is contingent on establishing standardized and low-cost compliance frameworks for traditional investment funds. While Blockstream CEO Adam Back pointed out that bitcoin provides users with genuine fiscal privacy without needing an institutional partner, Johnson concluded that typical investors will continue to demand a heavily regulated custody infrastructure.
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