Financial services giant Franklin Templeton has announced that it has built a new fund for regulated securities on its smart contract platform Solana.
Franklin Templeton’s Choice for Solana
Speaking at the Solana Breakpoint 2024 event, Franklin Templeton head of digital asset partnerships development Mike Reed said the investment giant’s final step to completing the project is to apply to develop it natively on the Solana network.
According to Reed, the tokens minted by the firm at Solana will represent actual records of ownership.
Mike Reed: “We don’t use third parties, we mint on the network. We don’t have an off-chain ledger that we maintain, the record of ownership is the token itself. You hold that token in your wallet and that’s your true proof of ownership.”
Advantages of Solana
Reed also explained Franklin Templeton’s reasons for choosing Solana.
Mike Reed: “I want to highlight what we like about Solana – the speed; we want to be able to move money very, very quickly. The cost efficiency of having this system run on the network benefits us as a company and you as an end user.
“Modern architecture, the standards used at Solana are extremely important to us and we work to develop standards that we believe should be used industry-wide. Finally, the Solana team has been great to work with and their development tools are second to none.”
Reed said Solana’s features, such as speed and cost efficiency, played a big role in Franklin Templeton’s development of on-chain financial services. He also emphasized that Solana’s modern architecture and standards helped the firm develop standards that needed to be adopted across the industry.
The current trading price of Solana (SOL) is $148.38 at the time of writing, an increase of 1.66% over the last 24 hours.
This project, developed by Franklin Templeton on Solana, is seen as an important step in the integration of traditional financial services with blockchain technology. The company aims to provide a more transparent and efficient system by keeping ownership records directly on the network, eliminating intermediaries. This development shows that the applications of blockchain technology in the financial sector are expanding and institutional investors are showing increasing interest in this area.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
