- The adoption of Stellar will not only lower transaction costs but also eliminate the need for multiple ledgers, reducing errors and inefficiencies.
- The connection between Stellar CTO Jed McCaleb and SpaceX CEO Elon Musk has led to speculation about a future collaboration between Stellar, Vast (McCaleb’s space tech company), and SpaceX.
Franklin Templeton, a world-renowned financial investment manager, has declared its intention to deploy blockchain technology to assist in managing transfers worth $1.7 trillion in assets. The firm has chosen the Stellar network for this revolutionary undertaking that promises to bring substantial transformation in terms of cost and operational benefits, reported CNF.
Why Is Franklin Templeton Choosing Stellar?
Crypto commentator Tomaki_x posted a video on X mentioning that Franklin Templeton’s move can be interpreted as a high level of confidence in the company’s capabilities in the Stellar network. Moreover, a company representative added that this move would fall in line with their strategy for optimal operational efficiency and cost-cutting.
The primary rationale for this is the sweeping distinction in transaction costs between blockchain and the traditional financial system. In conventional systems, 50,000 transactions cost about $50,000, assuming the payment infrastructure charges punitive amounts for their services. The same number of transactions in the Stellar blockchain network will cost a mere $120.
Franklin Templeton estimates that going over to Stellar will decrease transaction costs by a startling 99.75%. Besides, the blockchain eliminates multiple ledgers that require reconciliation, which significantly reduces error and other inefficiencies from human factors. It has saved the organization an estimated annual sum of about $200 million in reconciliation and remediation.
Also, it’s important to note that Franklin Templeton’s adoption of Stellar Network is not an isolated achievement. XLM has also been backed by the United Nations as a core constituent of a future global payment system. Hence, the asset manager’s decision to use Stellar will be beneficial in increasing institutional goodwill toward blockchain technology. Furthermore, this might also herald potential collaboration with space ventures as Stellar announces key security upgrades, reported CNF.
SpaceX Collaboration Loading?
Recently, developments surrounding the Stellar network have garnered much attention due to its association with Jed McCaleb, a pioneer in blockchain space and Chief Technology Officer of Stellar. McCaleb was also one of the co-founders of Ripple, besides being now the CEO of Vast, a company specializing in space technologies.
McCaleb’s relationship with Elon Musk, the CEO of SpaceX and Tesla, has sparked speculation about a possible partnership between Stellar, Vast, and SpaceX. This potential collaboration has excited the crypto community, especially the Stellar supporters. They expect the partnership to come true given Musk’s vision to integrate payment systems into the X platform.
For context, Musk has previously expressed his ambition to unite “half the global financial system” under one payment network. While some in the industry advocate for XRP’s integration into Musk’s plans, McCaleb’s connection to both Stellar and space technologies is noteworthy.
However, there’s no official partnership between Stellar and SpaceX at present. Nonetheless, the overlap in their interests suggests future opportunities for synergy between blockchain and space innovation.
