Major Firms and Asset Managers Embrace DLT and Crypto Initiatives in 2024

Major Firms and Asset Managers Embrace DLT and Crypto Initiatives in 2024

Crypto News – The landscape of global financial markets is witnessing a transformative shift, as indicated by Sandy Kaul, a high-ranking executive at Franklin Templeton. In a recent report, Kaul highlighted that for the first time, a clear path to fundamentally reengineer these markets is emerging, marking a significant milestone in financial history.

Leading the charge in this revolution are prominent financial institutions like JPMorgan and the Hong Kong and Shanghai Banking Corporation (HSBC), both of which have significantly increased their investment in blockchain technology as we head into 2024. This surge in activity signals a broader acceptance and integration of distributed ledger technology (DLT) within the realm of traditional finance.

JPMorgan, in particular, has made notable strides. On November 3rd, the firm completed its inaugural decentralized finance (DeFi) transaction using a public blockchain. This milestone was followed by the introduction of programmable payments on its JPM Coin blockchain platform on November 10th. Further expanding its blockchain footprint, JPMorgan, in collaboration with Apollo, announced plans on November 28th to launch a tokenized enterprise mainnet.

HSBC is not far behind in this blockchain race. The bank, in collaboration with Ant Group, tested tokenized deposits in a controlled sandbox environment set up by the Hong Kong Monetary Authority on November 1st. Shortly after, on November 8th, HSBC joined forces with Metaco, a tech firm owned by Ripple, to manage tokenized securities on its newly developed custody platform.

The increasing interest and investments from these financial powerhouses indicate a significant shift in the industry’s perspective towards DLT. Sandy Kaul’s comments, as reported by Bloomberg, underscore this sentiment. Kaul noted that the adoption of blockchain technology is not just on the rise but is accelerating at a remarkable pace. For the first time, there appears to be a feasible strategy for reconfiguring the global financial markets.

In another noteworthy development, Franklin Templeton, among other asset managers, is actively seeking to launch a spot Bitcoin exchange-traded fund (ETF). The firm officially filed its application for such an ETF with the United States Securities and Exchange Commission (SEC) on September 12th.

While some firms are diving headfirst into the blockchain realm, others are taking a more measured approach. Alex Holmes, CEO of MoneyGram, revealed in a Bloomberg interview that a modest team of around 20 employees is dedicated to their blockchain initiatives. Holmes believes this is proportionate to the anticipated revenue and profitability from these ventures.

In summary, as we approach 2024, the financial industry is experiencing a significant paradigm shift. Major players are rapidly adopting blockchain technologies, signaling a new era in the evolution of global financial markets.