Franklin Templeton Plans to Use Tokenized Assets in ETFs and Mutual Funds

Franklin Templeton could begin using blockchain-based assets in its ETFs and mutual funds as early as the fourth quarter, expanding its tokenization strategy into traditional investment products following SEC clearance.

At the center of the plan is the Franklin OnChain U.S. Government Money Fund (BENJI). The asset manager intends to make the tokenized money market fund available as a holding or collateral asset for conventional funds.

That would give BENJI a role beyond operating as a tokenized version of an established financial product. Franklin Templeton’s plans would bring digitally native assets into the portfolio infrastructure of its traditional fund business. 

The firm already oversees roughly $2.6 billion in tokenized money market funds. Franklin Templeton also intends to introduce more tokenized products, with those assets potentially serving cash and collateral functions in other funds it manages.

The planned integration broadens Franklin Templeton’s blockchain strategy from issuing traditional assets in tokenized form to deploying tokenized products within fund management.

Source: Bloomberg