Franklin Templeton taps Stellar (XLM) to reduce transaction costs by 99%

Investment management company Franklin Templeton recently revealed plans to move assets worth $1.7 trillion to blockchain.

According to the firm’s representative, they will use the Stellar (XLM) platform to reduce transaction costs and bolster operational efficiencies.

Franklin Templeton adopts Stellar

Franklin Templeton’s rep highlighted that blockchain technology will help the firm reduce costs.

Processing 50K transactions using traditional methods might cost about $50,000 while using the Stellar platform costs around $120 – a staggering 99.8% difference.

That presents a substantial financial benefit to the investment manager.

Besides trimming transaction costs, blockchain will help Franklin Templeton remove the need for several ledger reconciliations.

That will eliminate operational inefficiencies such as human error.

The firm expects to save around $200 million (excluding transaction charges) in reconciliation and remediation costs.

Meanwhile, Franklin Templeton’s move comes after last month’s claims that Stellar and Ripple are cornerstones of the new financial systems.

Stellar to dominate the global payment industry

A renowned crypto enthusiast, JackTheRipper, ignited the crypto community in October, highlighting the role of Ripple and Stellar in the new financial system.

The attached video highlights a 3-phase approach for integrating blockchain with global payment platforms.

The speaker emphasized that the new model will not introduce an entirely new system but a way of connecting existing platforms.

That includes integrating legacy systems like Visa, MasterCard, and Swift with new blockchains such as Stellar, Ripple, and Celo.

The first stage will involve account addressing to introduce an internationally distributed directory.

The directory will enhance smooth cross-border transactions without retaining sensitive data.

It will operate similarly to email addresses, ensuring secure and efficient communication between payment systems.

The second stage, tokenized compliance, introduces regulated tokens from trusted providers.

These assets will reduce related costs, improve global transaction efficiency, and smoothen the compliance process.

The third phase aims to ensure near-instant cross-border transaction settlement.

This stage will use CBDCs or DLTs (distributed ledger technologies).

XLM price performance

Stellar joined the recent broad-based rallies, soaring 58% since November 4 to $0.1415 on November 12.

It has seen a 7% decline after the peak, but technical indicators suggested bullishness at press time.

XLM changes hands at $0.1255, up 1.50% over the previous 24 hours.

Source – Coinmarketcap

The latest upsurge saw XLM breaking out of a range pattern that engulfed it in the previous six months.

The altcoin switched its daily market structure to bullish after breaching the $0.097 lower high on November 7.

Stellar bulls pushed beyond the significant resistance between $0.1 – $0.103 – which has restricted surges since August.

XLM will exhibit a bullish stance unless bears violate the support barrier at $0.107.

Nonetheless, the territory at $0.107 – $0.11 represented July highs, making retracements to $$0.115 or $0.11 a dip-buying opportunity.

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