Franklin Templeton and SWIFT say the future of banking is 24/7 and natively on-chain
Tokenized money market funds and digital bank deposits are quickly becoming integral parts of the financial infrastructure, according to top executives from Franklin Templeton, SWIFT, and Ledger. Speaking at Consensus Hong Kong 2026, they discussed how these technologies are moving from experimental stages to early adoption.
Chetan Karkhanis from Franklin Templeton highlighted the potential of tokenizing money market funds, a massive $10 trillion asset class consisting of short-term Treasuries and repos. By issuing fund shares on-chain and enabling access through self-custody wallets or exchanges, Franklin Templeton aims to provide 24/7 liquidity and reduce operational costs such as shareholder servicing fees.
On the banking side, SWIFT is exploring the use of tokenized deposits as digital representations of bank liabilities to modernize payments. Devendra Verma of SWIFT’s digital assets unit explained that these tokenized deposits could revolutionize the way banks handle value transfer, ultimately leading to faster and more efficient transactions.
SWIFT, known for connecting over 11,500 institutions globally, is developing a blockchain-based orchestration layer to facilitate the interoperability of central bank digital currencies (CBDCs), tokenized deposits, and other regulated digital assets. The goal is to eliminate cut-off times and holiday delays, ensuring 24/7 availability for payments.
Despite the potential benefits of these technologies, adoption remains modest compared to the size of global capital markets. Regulatory clarity, consistent standards, security, and governance are key challenges that need to be addressed before widespread adoption can occur.
Jean-François Rochet from Ledger emphasized the importance of security and governance in managing private keys and institutional controls securely. He highlighted the need for trust and confidence in these digital financial systems.
While the origins of cryptocurrency lie in disintermediation, the panelists agreed that the future will likely be a hybrid model. Traditional intermediaries will coexist with decentralized access, with some intermediaries evolving or falling away as the financial landscape is redesigned.
Overall, the shift towards tokenized money market funds and digital bank deposits represents a significant step towards a more efficient and accessible financial system. As technology continues to evolve, it will be crucial for regulators, institutions, and technology providers to work together to overcome challenges and unlock the full potential of these innovations.
