- Franklin Templeton’s Benji platform enables tokenized money market funds through regulated wallets, compatible with multiple blockchain networks.
- The adoption of blockchain in traditional finance accelerates due to efficiency needs, stablecoins, and supportive regulatory frameworks globally.
Sandy Call, head of innovation strategies at Franklin Templeton, discussed the growing impact of cryptocurrencies and blockchain technology on traditional finance (TradFi) during her appearance on the Thinking Crypto podcast.
Call highlighted how blockchain is reshaping the financial crypto market by improving efficiency, enabling tokenization, and fostering greater adoption of digital assets within regulated frameworks.
Blockchain Adoption in TradFi
Franklin Templeton’s report, The Future of Investment 2024/25, emphasizes the accelerating adoption of blockchain technology across traditional financial markets. This shift is driven by a need for greater efficiency, the emergence of stablecoins, and evolving regulatory frameworks that are becoming increasingly supportive of crypto assets.
Blockchain’s integration offers opportunities to streamline operations, reduce costs, and expand market access for institutional and retail investors alike.
The Benji Platform: A Gateway to Tokenization
Since 2017, Franklin Templeton has been developing Benji, a platform for tokenizing regulated assets, including money market funds. Benji enables the issuance and management of tokenized financial products through regulated wallets that are compatible with multiple blockchain networks. This approach allows for seamless interaction between blockchain infrastructure and traditional asset management, improving transparency and accessibility.
The Rise of Cryptocurrency ETFs
The success of Bitcoin and Ethereum ETFs in recent years highlights investor demand for crypto exposure through regulated channels. Franklin Templeton’s report suggests that multi-cryptocurrency ETFs could soon be approved, offering diversification and reducing risks for investors. This marks a critical step in bridging the gap between crypto assets and mainstream investment strategies.
Tokenization’s Global Impact
Tokenization facilitates global access to financial products by eliminating geographical barriers. By leveraging blockchain technology, financial institutions can offer secure and efficient asset management, allowing for broader participation in global markets. Tokenization is also expected to reduce the reliance on intermediaries, potentially altering the traditional role of brokers and custodians.
🚨$1.6 TRILLION FRANKLIN TEMPLETON’S TOKENIZATION PLATFORM!
Sandy Kaul is the Head of Innovation Strategies at Franklin Templeton talks about the firm’s Benji Tokenization platform which includes a KYC AML Wallet system.
The Benji tokenization platform was recently launched on… pic.twitter.com/ElNcuzmf8R
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) December 27, 2024
Future of Regulation
The podcast also touched on anticipated changes in U.S. regulations, which could create a more favorable environment for cryptocurrencies and blockchain technology. A regulatory shift could accelerate the approval of diverse crypto ETFs and foster broader acceptance of tokenized financial products.
