Franklin Templeton, a prominent global investment management firm, recently announced its plan to shift $1.7 trillion of its assets via blockchain technology, specifically utilizing the Stellar (XLM) network.
The announcement was made in a video by crypto enthusiast Tomaki_x on X. In the video, Franklin Templeton’s representative explained the rationale behind adopting Stellar for asset transfers.
The firm anticipates that this strategic move will yield substantial cost savings and operational efficiencies.
Advantages of Blockchain Tech Over Traditional Finance
In traditional financial systems, processing 50,000 transactions could cost around $50,000 due to the fees associated with conventional payment rails. In contrast, conducting the same number of transactions on the Stellar network costs approximately $120.
Franklin Templeton estimates that adopting Stellar’s blockchain will reduce transaction costs by 99.75%, which presents a significant financial benefit.
The representative further noted that in addition to transaction cost savings, the transition to blockchain will help eliminate the need for multiple ledger reconciliation, thus reducing human error and other operational inefficiencies.
The company anticipates annual savings of about $200 million in remediation and reconciliation costs.
Meanwhile, XLM has been endorsed by the United Nations as a cornerstone of the new global payment network and this adoption is a major step for the digital asset.
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Potential Partnership With Elon Musk
Another intriguing development with the Stellar network involves Jed McCaleb, a key figure in the blockchain space. McCaleb, who co-founded Ripple, subsequently created Stellar and currently serves as its Chief Technology Officer. Additionally, he is the CEO of Vast, a space technology company.
McCaleb’s professional relationship with Elon Musk, CEO of SpaceX, has fueled speculation in the crypto community about potential collaborations between Stellar, Vast, and SpaceX. As highlighted by Tomaki_x, this connection suggests an intersection of blockchain technology and space innovation.
While the primary focus remains on the efficiencies and cost savings that Stellar’s blockchain can offer to traditional financial processes, the alignment of Franklin Templeton’s adoption of Stellar and McCaleb’s space ventures has raised questions about Stellar’s role in the broader technology ecosystem.
The speculation is further fueled by Musk’s vision of integrating payments into the X ecosystem—a goal he previously described as bringing “half the global financial system” under a unified payments framework.
Many in the crypto world have pushed for XRP to be integrated into X payments, but McCaleb and Musk’s overlapping interests in blockchain and space technology are notable. However, no official partnership has been announced between Stellar and SpaceX.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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