Key Takeaways
- Franklin Templeton has integrated its Benji investor platform with the Canton Network, an institutional blockchain solution.
- This integration allows Franklin Templeton’s tokenized assets, like its US government money market fund shares, to be used as collateral within Canton’s Global Collateral Network.
- The move signifies growing institutional interest in tokenizing real-world assets and bridging traditional finance with digital asset markets.
- Canton Network, backed by institutions like HSBC and BNP Paribas, aims to connect regulated tokenized products with institutional digital asset markets.
Franklin Templeton Expands Tokenization to Canton Network
Franklin Templeton has advanced its digital asset strategy by integrating its Benji investor platform with the Canton Network. This development marks a significant step in building institutional blockchain infrastructure for tokenized investment products.
The integration connects Franklin Templeton’s proprietary Benji Technology Platform to Canton, a blockchain network specifically designed for regulated financial institutions. This connection enables Benji’s tokenized assets, including shares of its onchain US government money market fund, to be utilized as collateral and liquidity within Canton’s Global Collateral Network.
Each Benji token represents a share in Franklin Templeton’s tokenized money market fund, with daily yield calculations and ownership recorded on the blockchain.
This collaboration is focused on linking regulated tokenized investment products with institutional digital asset markets. This trend is accelerating as more traditional financial players explore blockchain technology, especially with the emergence of clearer regulatory frameworks.
Canton Network’s Role in Institutional Tokenization
Canton’s Global Collateral Network serves as a conduit for banks, market makers, and asset managers to tokenize and mobilize assets for collateral management and settlement purposes.
The network’s institutional focus has garnered significant support from major entities, including HSBC and BNP Paribas. Digital Asset, the developer behind Canton, recently secured $135 million in funding to further enhance Canton’s infrastructure and ecosystem growth.
By joining the Canton Network, Franklin Templeton is adding regulated, onchain investment products to its growing array of tokenized instruments on the platform. This move further bridges the gap between traditional finance and the rapidly evolving digital asset markets.
Institutional Adoption of Tokenization
Franklin Templeton is among an increasing number of leading financial institutions that are embracing the tokenization of real-world assets (RWAs). This shift is partly attributed by Hashgraph CEO Eric Piscini to the growing clarity of regulations in major markets.
Piscini highlights initiatives like BlackRock’s tokenized fund endeavors, Citi’s exploration of digital asset custody, and Franklin Templeton’s Benji platform as prime examples of traditional finance adopting blockchain-based infrastructure.
Advocates suggest that trillions of dollars in RWAs could eventually migrate onto the blockchain, citing advantages such as expedited settlement, enhanced transparency, reduced operational costs, and improved liquidity. However, as Pharos CEO Alex Zhang noted in a recent commentary, establishing a compliant and interoperable foundation for tokenized finance requires time.
Current industry data indicates that the total value of tokenized real-world assets, excluding stablecoins, has reached approximately $36.6 billion. Institutional funds represent about $3 billion of this total, with tokenized US Treasurys accounting for roughly $8.4 billion.
Expert Summary
Franklin Templeton’s Benji platform is now accessible on the Canton Network, facilitating the use of its tokenized money market fund as collateral. This strategic integration underscores the increasing institutional adoption of blockchain for real-world asset tokenization.
The move aligns with broader industry trends towards clearer regulations and the convergence of traditional finance with digital asset markets, highlighting the potential for increased efficiency and liquidity.
