1 hour ago
9
One of the largest crypto exchanges and one of the oldest asset managers in the US just decided to build something together. Payward Inc., the parent company of Kraken, is partnering with Franklin Templeton to develop tokenized investment products that live on blockchain rails.
The collaboration spans tokenized equities, actively managed yield products, and the integration of Franklin Templeton’s BENJI money market fund into Kraken’s digital asset infrastructure.
What the partnership actually involves
First, Kraken will integrate Franklin Templeton’s BENJI money market fund as a collateral asset and cash management tool for institutional clients. Institutional traders on Kraken will be able to park cash in a tokenized money market fund and use it as collateral, rather than letting dollars sit idle in an account earning nothing.
Second, the two firms plan to develop actively managed onchain strategies under Franklin Templeton’s brand. These are yield-focused products that will be managed by Franklin Templeton’s investment team but delivered through blockchain infrastructure.
Third, the partnership will tap into Payward’s xStocks framework, which facilitates tokenized equity trading. That framework has processed over $30B in trading volume since it launched in 2025.
Initial access will be targeted at institutional clients. Retail availability may follow in select regulated jurisdictions.
Why Franklin Templeton keeps showing up in crypto
Franklin Templeton, which manages over a trillion dollars in assets, has been one of the most forward-leaning traditional asset managers when it comes to blockchain adoption. Its BENJI money market fund was among the first tokenized fund products to gain real traction, and the firm has steadily expanded its onchain footprint over the past few years.
For Kraken, the deal adds institutional credibility and product depth. The exchange has been expanding beyond simple spot trading, and partnering with Franklin Templeton gives it access to professionally managed, regulated financial products that live natively onchain.
The bigger picture for tokenized finance
The use of BENJI as collateral is particularly worth watching. One of the persistent friction points in crypto markets is that idle cash doesn’t earn yield the way it does in traditional finance, where treasurers can sweep funds into money market accounts overnight. If tokenized money market funds become accepted collateral on major exchanges, it changes the economics of institutional crypto trading. Traders get yield on their cash while maintaining the ability to deploy it quickly.
Franklin Templeton’s fund comes with the regulatory framework and institutional trust that DeFi protocols typically lack. BlackRock’s BUIDL fund, Ondo Finance, and several other players are all racing to capture institutional demand for onchain financial products.
The fact that retail access is being deferred to “select regulated jurisdictions” reflects how carefully both firms are navigating securities law, banking regulation, and crypto oversight.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·