Jenny Johnson, the CEO of asset management company Franklin Templeton, has highlighted the transformative potential of tokenization in the practice of securitization. Speaking at CNBC’s Delivering Alpha event, Johnson compared tokenization to “securitization done on steroids,” emphasizing its ability to exceed expectations. She noted that tokenization, which involves converting asset ownership rights into digital tokens on a blockchain, offers advantages such as serving as a payment mechanism, allowing smart contracts to be programmed into tokens, and providing a source of truth through a general ledger. Johnson cited singer Rihanna’s release of a nonfungible token (NFT) as an example of the benefits of tokenization, enabling the capture and execution of smart contracts for royalty payments on streaming platforms like Spotify.
Johnson also discussed the potential for athletes to benefit from tokenization. She proposed the idea of athletes selling tokens representing a portion of their future revenue stream to fans, who would pay a premium for them. This approach, according to Johnson, is a form of securitization that can offer significant opportunities for athletes. Franklin Templeton, a global asset manager with over $1.5 trillion in assets under management, is currently awaiting regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States.
In her role as CEO of Franklin Templeton, Johnson’s remarks reflect her belief in the transformative power of tokenization in the field of securitization. She highlighted the advantages of tokenization, including its ability to serve as a payment mechanism, facilitate smart contracts, and offer a reliable source of truth. Johnson used Rihanna’s NFT release as an example of how tokenization can streamline royalty payments. Additionally, she discussed the potential for athletes to tokenize their future revenue streams, offering fans the opportunity to invest in their success. These insights align with Franklin Templeton’s interest in innovative investment vehicles as demonstrated by its pursuit of a spot Bitcoin ETF.
