Tokenization, according to Jenny Johnson, CEO of Franklin Templeton, one of the biggest asset managers in the world, is revolutionising the securitization process. Tokenization, the process of transforming asset ownership rights into digital tokens on a blockchain, was described by Johnson as “securitization done on steroids” while he was speaking at CNBC’s Delivering Alpha event.
An examination of the prospects of alternative investment vehicles included Johnson’s comments. She pointed out that more businesses and CEOs have been investing in “things for the future,” such as blockchain technology, as a result of the availability of financing and technological disruption.
According to Johnson, tokenization enables a payment system, the programming of smart contracts into the token, and a global ledger as a source of truth.
Johnson used Rihanna as an example, showing how the singer released one of her well-known songs as a nonfungible token (NFT), enabling holders to get a portion of streaming earnings. Johnson also discussed how athletes may profit from tokenization by offering supporters tokens that are worth a portion of their potential future income streams. A spot Bitcoin exchange-traded fund (ETF) is now pending regulatory clearance in the United States from Franklin Templeton, a $1.5 trillion asset manager with locations all over the world.