CoinDesk
Payward, the parent of crypto exchange Kraken, is partnering with Franklin Templeton to develop a range of tokenized financial products aimed at institutional investors, the companies said Tuesday. The collaboration will cover tokenized yield products, tokenized equities, custody services, and actively managed onchain funds — some of which may reach retail Kraken users in certain jurisdictions.
Kraken also plans to integrate Franklin Templeton's BENJI tokenized money market fund family as collateral and cash management tools on its platform, giving institutional clients a yield-bearing, blockchain-native alternative to traditional Treasury operations that can be moved around the clock rather than waiting for banking hours or multiday settlement.
Why it matters
The partnership is a structural vote of confidence in tokenized money market funds as working collateral — not just as a TradFi marketing exercise. Franklin Templeton has been one of the longest-running traditional asset managers in tokenized finance, while Payward brings the distribution rail of a major crypto exchange plus its xStocks tokenized equities platform, which the company says has processed more than $30 billion in trading volume since launching in 2025.
The move also lands in a crowded field. BlackRock, Fidelity and JPMorgan have all expanded blockchain-based products over the past two years, particularly tokenized Treasuries and money market funds. Tokenization represents traditional financial assets — stocks, bonds, money market funds — on blockchain networks where they can be traded and settled digitally, with supporters arguing the approach can compress settlement times, broaden market access and let collateral move freely between platforms.
Market impact
Analysts view tokenized Treasury funds as one of the fastest-growing segments in digital assets because they offer yields tied to government securities while operating on blockchain rails — letting institutions move collateral continuously rather than waiting for banking windows.
Frequently asked questions
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What is the Payward and Franklin Templeton partnership about?
Payward, the parent of crypto exchange Kraken, is working with asset manager Franklin Templeton to develop tokenized financial products for institutional investors, including tokenized yield products, tokenized equities, custody services and actively managed onchain funds.
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How will Kraken use Franklin Templeton's BENJI tokenized money market fund?
Kraken plans to integrate BENJI — Franklin Templeton's suite of tokenized money market funds — as collateral and cash management tools for institutional clients, giving them a yield-bearing, blockchain-native alternative to traditional Treasury operations.
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What is xStocks and how does it fit into the partnership?
xStocks is Payward's tokenized equities platform, which the company says has processed more than $30 billion in trading volume since launching in 2025. It brings a real distribution and trading rail to the Franklin Templeton collaboration.
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Why are tokenized Treasury and money market funds growing so quickly?
Tokenized Treasury funds offer yields tied to government securities while operating on blockchain rails, letting institutions move collateral around the clock instead of waiting for banking hours or multiday settlement periods.
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How does this deal compare to moves by BlackRock, Fidelity and JPMorgan?
All four traditional finance giants have expanded blockchain-based products over the past two years, particularly tokenized Treasuries and money market funds. The Payward–Franklin Templeton partnership adds a major crypto exchange distribution channel to that race.
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