Key Takeaways

• Kraken’s parent company (Payward) and Franklin Templeton are working together to create tokenized investment products that connect traditional finance with blockchain. 

• They will build tokenized yield products, blockchain-based funds, and crypto investment tools for institutions, leveraging on-chain systems. 

• Franklin Templeton’s BENJI platform will be added to Kraken’s system to support tokenized money market funds for trading and cash use.

Payward, the parent company of crypto exchange Kraken, has partnered with asset management giant Franklin Templeton to develop tokenized investment products, marking another step in the growing connection between traditional finance and blockchain markets.

The project aims to bring regulated investment products on-chain, enabling their creation, management, and trading on blockchain infrastructure. Both firms say the goal is to improve efficiency, widen access for institutional investors, and unlock new types of digital financial products built for a tokenized economy.

Focus on Tokenized Yield and Institutional Products

According to early details of the partnership, Kraken under Payward and Franklin Templeton will jointly develop several categories of on-chain financial instruments, including tokenized yield products, blockchain-based funds, and institutional crypto investment structures.

The partnership aims to bring traditional finance closer to blockchain by turning real-world financial products into tokenized versions that can move and settle on-chain. It also includes yield-focused products and fund structures built directly on blockchain systems.

Beyond funds, the two firms are also looking at tokenized stocks and digital asset custody solutions, showing a wider plan that goes beyond simple digitization. By combining Franklin Templeton’s regulated asset management expertise with Kraken’s trading infrastructure under Payward, the goal is to create compliant, blockchain-based investment systems for institutional clients.

Integration of Franklin Templeton’s BENJI Platform

A key part of the collaboration is the integration of Franklin Templeton’s “BENJI” tokenized money market fund system into Kraken’s infrastructure, operated under Payward. BENJI already functions as a blockchain-based version of traditional money market funds and is expected to be used for collateral and cash management within Kraken’s institutional trading systems.

By adding BENJI to these workflows, institutional clients could use tokenized fund shares for real-time operations, improving liquidity and reducing settlement delays typically seen in traditional finance systems.

Sandy Kaul, head of digital assets and innovation at Franklin Templeton, said the goal is to ensure on-chain assets can work effectively for all types of market participants.

Sandy Kaul explained:

“By expanding the utility of BENJI and exploring new tokenized products, our work with Payward reflects the growing need to serve both digital-native and institutional customers with solutions built for how capital increasingly moves on-chain.” 

Bringing Institutions Closer to On-Chain Finance

This partnership builds on a bigger trend in which financial firms are moving real-world assets onto blockchain networks. Franklin Templeton has been active in this space since 2021, launching tokenized funds and testing blockchain-based settlement systems, while Kraken has been expanding beyond crypto trading into tokenized equities and traditional financial products to better connect digital assets with regulated markets.

Together, the two companies are working to improve the core infrastructure for on-chain finance, aiming for 24/7 markets, faster settlement, and more flexible, programmable financial products for institutional use.

Growing Interest in Real-World Asset Tokenization

The collaboration arrives as the tokenization of real-world assets (RWAs) gains strong momentum across Wall Street and the crypto industry. Big financial firms are increasingly looking at how blockchain can update traditional systems by cutting out middle layers and making transactions more transparent.

Recent moves from other major institutions also show this shift, with banks, asset managers, and exchanges testing tokenized bonds, funds, and equities as they explore new ways to bring assets on-chain.

Final Thoughts

The partnership between Kraken’s parent company, Payward, and Franklin Templeton shows how traditional finance and blockchain are moving closer together. By building tokenized investment products and using systems like BENJI, both firms aim to make markets faster, simpler, and more efficient for institutions. As interest in tokenized real-world assets continues to grow, this move signals a shift toward on-chain financial systems that operate 24/7 and reduce the need for middlemen. If successful, it could help reshape how investment products are created, traded, and managed in the digital economy.

Frequently Asked Questions

What is the Kraken and Franklin Templeton partnership about?

Kraken’s parent company, Payward, and Franklin Templeton are working together to create tokenized investment products that bring traditional financial instruments onto blockchain networks. The goal is to make these products easier to issue, manage, and trade using on-chain systems.

What types of tokenized products will they build?

The partnership will focus on tokenized yield products, blockchain-based funds, and institutional crypto investment structures. These are designed to give investors blockchain-native access to regulated financial products.

How does this partnership connect traditional finance and blockchain?

It bridges both worlds by turning real-world financial products into tokenized versions that can move on-chain. This allows faster settlement, improved transparency, and more efficient financial operations.

What is the role of Franklin Templeton’s BENJI platform?

The BENJI platform, which represents tokenized money market funds, will be integrated into Kraken’s infrastructure. It will be used for collateral and cash management in institutional trading workflows.

Who will benefit from these tokenized investment products?

The primary focus is on institutional investors such as asset managers, funds, and financial institutions seeking compliant, blockchain-based investment tools.