Franklin Templeton CIO notes rising institutional interest in liquid digital assets

Seth Ginns, Chief Investment Officer of Franklin Crypto at Franklin Templeton, reports a significant shift in how institutional investors approach digital assets. Rather than focusing solely on venture capital and early-stage infrastructure investments, institutions are increasingly gravitating toward liquid digital assets.

Ginns notes that the combination of the current macroeconomic environment and recent price corrections in the digital asset market has heightened the appeal of liquid assets. He suggests that market prices for many digital assets have fallen below their fundamental value, creating an attractive entry point for institutional capital.

Key drivers for this institutional adoption include the Lindy effect observed in established networks like Ethereum, the rise of stablecoins, real-world asset (RWA) tokenization, and the integration of artificial intelligence with blockchain technology. Ginns emphasizes that the convergence of traditional finance and decentralized blockchain infrastructure is occurring with unprecedented intensity, positioning tokenization as a core driver for reimagining global financial infrastructure.