Franklin Templeton Sees Digital Assets Exploding Into Traditional Finance

CN
4 hours ago

Digital assets continued to push deeper into mainstream finance as institutions and regulators accelerated efforts to bring crypto products into traditional markets. Franklin Templeton, one of the world’s largest asset managers, reflected on these developments through its Franklin Templeton Digital Assets account. The account shared on social media platform X on Oct. 2: “September brought steady progress across the digital asset space, with notable developments in tokenization, regulatory developments, and mainstream market participation.”

The update also noted that these events coincided with market volatility following the Federal Reserve’s rate cut. The firm emphasized how momentum from the prior month carried forward, stating: “Building on August’s momentum, September highlighted how deeply digital assets are embedding into mainstream finance.” Tokenization remained a dominant theme, with Franklin Templeton stating:

One of the strongest themes of the month was the acceleration of tokenization and institutional adoption.

Key examples included Galaxy Digital’s decision to tokenize its public shares on Solana and Forward Industries’ $1.6 billion digital asset treasury strategy. Nasdaq filed to list tokenized stocks, while Franklin Templeton advanced its Benji Technology platform onto the BNB Chain and worked with Binance, Ripple, and DBS on tokenized finance solutions.

The firm further explained: “Alongside tokenization, several companies made major market entries that broadened mainstream access to crypto.” Gemini launched its $425 million IPO, Figure reached a $7.6 billion valuation through its listing, and American Bitcoin shares rose more than 10% on their first trading day. Franklin Templeton Digital Assets added:

Together, these moves underscored the growing willingness of traditional capital markets to embrace crypto-linked firms.

The asset manager also highlighted the regulatory backdrop. The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released a joint statement permitting registered exchanges to list certain spot crypto products and later convened a Sept. 29 roundtable with major exchanges. The SEC shortened approval timelines for spot crypto ETFs and cleared new funds, including one based on Dogecoin. Meanwhile, Australia proposed exchange licensing under existing financial laws, and European banks prepared a euro-denominated stablecoin.

Summing up the month, Franklin Templeton stated: “Overall, September underscored the dual nature of crypto’s evolution: rapid innovation and institutional entry alongside ongoing volatility. Tokenization advanced meaningfully, stablecoin initiatives multiplied, and regulators took decisive steps toward clarity. As October begins, the stage is set for deeper integration between traditional finance and digital assets, with regulatory harmonization and institutional adoption driving the industry forward.”

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