Three new collaborations between traditional finance (TradFi) and decentralized finance (DeFi) could take cryptocurrency wallets to the next level and aid mass adoption.
A global investment firm, Franklin Templeton, recently announced the first U.S.-registered mutual fund to, "use a public blockchain to process transactions and record share ownership." It will use the Stellar blockchain to process transactions and earn a 4.5% interest. The company also launched a mobile app that allows you to browse tokenized securities and invest in the world’s first tokenized money fund. This lets users buy U.S. Treasuries on the blockchain.
It’s not just Franklin Templeton. KKR & Company (KKR), a global investment firm with over $500 billion in assets – is partnering with Securitize to tokenize part of its $4 billion healthcare growth fund on the Avalanche blockchain. For years, alternative investments were only available to large, accredited investors. KKR’s tokenized fund allows more people to invest smaller amounts than required.
There’s also WisdomTree (WT). The ETF issuer has $90 billion in assets under management. It has nine blockchain funds and plans to launch a crypto wallet that allows anyone to trade tokenized assets like U.S. Treasuries and gold.
Another innovation that could strengthen the collaborations between TradFi and DeFi is “smart accounts.” Losing the key to your crypto wallet means losing access to your account.
However, you can have a seedless login with “smart accounts” without keeping track of long alphanumeric keys. You can also program in social recovery to regain access if you lose your credentials.
That’s just the tip of the iceberg. Soon, we might be able to schedule payments, automate transactions, and perhaps even use tokens to pay our utility bills.
On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
