Franklin Templeton, a well-known asset management firm, has taken important steps in decentralized finance (DeFi) by launching its tokenization project, Benji, on the Ethereum blockchain.
This is the company’s fifth platform integration in 2023, after successful launches on Aptos, Avalanche, Arbitrum, and Base. Now, Benji is available on seven platforms, including Stellar and Polygon.
Sandy Kaul, the Head of Innovation Strategies at Franklin Templeton, talked in a podcast about how the firm started working on its DeFi solution back in 2017. The company has built a complete system for issuing and managing tokens, including a wallet that follows KYC and AML rules.
This wallet system keeps keys safe in cold storage, allowing the firm to issue regulated funds, handle subscriptions and redemptions, and track shareholder changes easily.
Kaul highlighted that the new stack supports thorough regulatory reporting and allows easy exchange of stablecoins within Franklin Templeton’s network, incorporating them into money market funds that earn yield.
This innovation highlights how more people are using DeFi, showing that new technologies can improve traditional industries and broaden asset management options.
This new system is a big improvement for Franklin Templeton’s 50-year-old setup. It shifts from a complicated account-based model to a simpler wallet system that combines investors’ funds. Kaul thinks this change will make it easier for users to connect, leading to new investment chances.
