Franklin Templeton is at the forefront of a significant transformation in the payments and asset management industries, leveraging blockchain technology to reshape traditional financial structures. A recent report from McKinsey highlights the rise of stablecoins and tokenized cash as formidable competitors to established financial infrastructure, with predictions of transaction volumes soaring to $250 billion per day within three years. This rapid evolution has prompted banks, asset managers, and technology providers to adapt swiftly or risk becoming obsolete.
Roger Bayston, Franklin Templeton’s head of digital assets, emphasizes that blockchain is not merely an experimental venture for the firm; instead, it represents a fundamental shift in how securities, funds, and collateral are issued, traded, and managed. Bayston recalls that the company’s initial exploration of distributed ledger technology was primarily research-oriented, focusing on how it could minimize costly reconciliations and eliminate redundant ledgers in capital markets. Following a favorable regulatory shift in the U.S. early this year, Franklin Templeton transitioned from research to commercial application.
A standout product from Franklin Templeton is “Benji,” a blockchain-enabled representation of its U.S. Government Money Fund. Unlike traditional brokerage accounts, Benji allows investors to hold a token in a digital wallet, facilitating nearly instantaneous transfers while calculating yields intraday to the second, a feature unattainable in older systems. The demand for such innovative offerings is growing, particularly among crypto-native firms and exchanges seeking yield-bearing alternatives to conventional stablecoins.
McKinsey’s report underscores this emerging synergy, as yield-generating, tokenized cash equivalents are increasingly seen as desirable complements to traditional stablecoins. Franklin Templeton, along with other pioneers like BlackRock and Ondo, is leading this charge.
Bayston notes that tokenization extends beyond streamlined money funds; it possesses the potential to broaden the spectrum of investable assets. The firm has revamped its transfer agency infrastructure using blockchain, enabling previously illiquid or non-fungible assets—such as private funds and fractional ownership of sports teams—to be included in client portfolios alongside conventional securities.
Natalya Thakur, CEO of Knova, which provides support for integrating traditional and tokenized assets, remarks on Benji’s launch as evidence of how tokenization is revitalizing even the most traditional financial products. She highlights that institutions are eager to blend tokenized and conventional assets into a singular operational framework, optimizing yields and facilitating immediate collateral movement.
Broader implications are anticipated as tokenized money, deposits, and securities could potentially transform capital markets, treasury operations, and cross-border remittances. The benefits extend beyond mere cost efficiency to the creation of entirely new product categories and customer demographics.
Franklin Templeton has already rolled out multiple iterations of Benji, catering to both U.S. and European Union markets. While initial adoption has been most robust in crypto-friendly environments, Bayston is optimistic about further integration into public markets as regulatory frameworks evolve. He cites recent legislative developments, such as the EU’s Markets in Crypto-Assets regulation and the U.S. GENIUS Act, as catalysts for broader acceptance of tokenized funds alongside stablecoins.
As for the immediate future, Bayston refrains from making sweeping projections for the next five years but remains optimistic about the upcoming twelve months. The firm has developed a comprehensive tokenization platform spanning both public and private funds, and the next phase involves widespread deployment across its asset management divisions. With the existence of numerous wallet ecosystems housing hundreds of millions of potential customers, Bayston sees a significant opportunity to extend Franklin Templeton’s reach.
According to the McKinsey report, by 2025, stablecoins and tokenized assets could penetrate mainstream finance. For Franklin Templeton, however, that transition is already in progress, as the firm demonstrates that the concept of tokenization is evolving from theory into a viable business model. This progress underscores the potential disruption not from fintech newcomers, but rather from traditional players willing to innovate and adapt to the digital landscape.
