Kraken's parent company, Payward Inc., has partnered with Franklin Templeton to develop tokenized investment products on blockchain rails. The collaboration includes tokenized equities, actively managed yield products, and integration of Franklin Templeton’s BENJI money market fund into Kraken’s infrastructure.
First, Kraken will integrate the BENJI fund as a collateral asset and cash management tool for institutional clients. This allows traders to park cash in a tokenized money market fund and use it as collateral, earning yield instead of leaving dollars idle.
Second, the firms will develop actively managed onchain strategies under Franklin Templeton’s brand-yield-focused products managed by their investment team but delivered through blockchain infrastructure.
Third, the partnership leverages Payward’s xStocks framework, which has processed over $30 billion in trading volume since 2025 for tokenized equity trading.
Initial access targets institutional clients, with retail availability possible in select regulated jurisdictions.
Franklin Templeton, managing over a trillion dollars in assets, is one of the most forward-leaning traditional asset managers in blockchain adoption. Its BENJI fund was among the first tokenized fund products to gain traction.
For Kraken, the deal adds institutional credibility and product depth, expanding beyond spot trading into professionally managed, regulated onchain financial products.
The use of BENJI as collateral is significant. Tokenized money market funds could change institutional crypto trading economics by allowing traders to earn yield on cash while maintaining quick deployability.