Franklin Templeton To Adopt Solana, Citibank Also Exploring Network

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As a seasoned researcher with over two decades of experience in the financial industry, I’ve witnessed the evolution of technology and its impact on finance firsthand. The recent announcements by Franklin Templeton and Citibank to adopt Solana for their respective services is an exciting development that underscores the growing maturity and acceptance of blockchain technology within mainstream finance.

Financial titan Franklin Templeton unveils plans to incorporate the Solana network into its on-chain mutual fund. Similarly, banking behemoth Citibank is investigating the potential use of Solana for processing transfers and various smart contract services. These advancements are certainly beneficial for the Solana community, as it continues to gain momentum due to its promising underlying factors following recent updates.

Franklin Templeton To Launch Mutual Fund On Solana

At the 2024 Solana Breakpoint gathering, Franklin Templeton’s executive Mike Reed disclosed their intention to introduce an on-chain mutual fund within the Solana ecosystem. Reed emphasized that the network’s cost-effectiveness was a significant factor in their decision to utilize Solana for this venture.

Reed went into more detail about his belief that blockchain technology could boost their financial services as a $1.4 trillion asset manager. Particularly, he highlighted the reason they opted to move their mutual fund onto the blockchain platform, particularly Solana.

Instead of hiring an outside firm, it’s been announced that the executive plans to establish an in-house development team. This team will handle the process of tokenizing the funds directly, and they’ll also set up the required infrastructure for these tokens to be traded securely over blockchain networks.

As a researcher, I find it’s no wonder Franklin Templeton decided to embrace Solana. After all, they had previously highlighted Solana as being “well-positioned” to seize the upcoming wave of cryptocurrency adoption. This strategic foresight seems to have played a crucial role in their decision.

Additionally, they explained that once activated, the Firedancer would boost the technical functionalities of the network. Interestingly enough, the Frankendancer – featuring a part of the Firedancer validator client – was launched today.

Citibank Also Exploring Solana

At the Solana Breakpoint conference, Citibank disclosed their intention to investigate Solana and potentially leverage its network for money transfers and smart contract solutions in the future. Similar to Franklin Templeton, Citibank acknowledges that blockchain technology is shaping the future of finance, and as a result, they aim to integrate it to enhance their financial services. Notably, earlier this year, Citibank employed Avalanche for testing the tokenization of private equity funds.

It’s clear that both Franklin Templeton and Citibank are drawn to Solana due to its robust ecosystem, as they see the potential for a significant influx of liquidity into SOL. Furthermore, it’s noteworthy that a Solana Spot ETF could potentially debut, with VanEck and 21Shares having already filed applications to provide one. This move is likely to boost institutional adoption of Solana even more.

The underlying factors of Solana are positive and point towards a possible increase in the value of SOL. Solana Mobile has unveiled plans for a new mobile feature called Seeker, which is set to launch in 2025. At the same time, the ZK Compression upgrade has already been implemented on the network’s main server. In simpler terms, Solana’s strengths indicate a potential rise in SOL price, with the introduction of a new mobile feature (Seeker) slated for 2025 and the ZK Compression upgrade now live on the main network.

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2024-09-20 14:36