According to Cointelegraph, Jenny Johnson, CEO of Franklin Templeton, one of the world's largest asset managers, believes that tokenization is transforming the practice of securitization. Speaking at CNBC's Delivering Alpha event, Johnson compared tokenization, the process of converting asset ownership rights into digital tokens on a blockchain, to 'securitization done on steroids,' a term often used to describe something that exceeds expectations.
Johnson's remarks were part of an analysis of the future of alternative investment vehicles. She noted that available capital and technology disruption have been attracting more companies and CEOs to invest in 'things for the future,' like blockchain technology. Johnson explained that tokenization allows for a payment mechanism, smart contracts to be programmed into the token, and a source of truth through a general ledger.
Using Rihanna as an example, Johnson highlighted how the singer released one of her popular songs as a nonfungible token (NFT), allowing holders to partially earn royalties on streaming. Johnson also mentioned that athletes could benefit from tokenization by selling off tokens worth a percentage of their future revenue streams to fans. Franklin Templeton, a $1.5 trillion asset manager with offices worldwide, is currently awaiting regulatory approval in the United States for a spot Bitcoin exchange-traded fund (ETF).
