Franklin Templeton, managing $1.68 trillion, has launched tokenized ETFs that can be traded 24/7 directly in crypto wallets. This move eliminates traditional market-hour constraints, offering instant liquidity.
The firm’s Benji Technology Platform introduced the first US-registered blockchain-based money market fund in 2021, growing to $557 million by early 2026. Its EZPZ and XRPZ ETFs have also drawn significant institutional interest.
This development represents more than just convenience; it signals a structural shift in capital markets. Blockchain enables real-time settlement, reducing liquidity risks for institutional investors. With 73% of institutional investors planning to increase digital asset allocations, the trend is clear.
Franklin Templeton has partnered with Binance to use tokenized fund shares as collateral for institutional trades, bridging traditional and crypto markets.
The regulatory landscape, with the GENIUS Act and SEC’s XRP ruling, provides clarity, encouraging further adoption. However, risks remain, including asset volatility and potential contagion effects.
The trend towards tokenization is accelerating, with competitors like BlackRock and Fidelity following suit. As traditional finance integrates with blockchain, the future of fund distribution may run on digital rails.