Franklin Templeton is further integrating its tokenized fund business into on-chain infrastructure. According to CoinDesk, the company has partnered with MoonPay to open up on-chain conversion between stablecoins and tokenized money market funds to qualified institutional investors.
Integrating MoonPay Trade
This collaboration connects Franklin Templeton's Benji Technology Platform with MoonPay Trade. Once integrated, eligible institutions can directly exchange supported stablecoins for the company's tokenized money market fund shares within the blockchain network, or redeem them back for stablecoins.
The article states that the entire process does not require exiting the on-chain environment. For institutions, this means that cash-like assets can be switched more quickly between stablecoins and interest-bearing tokenized funds.
Targeting 24-hour revenue needs
Sandy Kaul, head of innovation and digital assets at Franklin Templeton, said the company is seeing rising institutional demand for "all-day yields." She believes stablecoins, tokenized funds, and other forms of digital currency are becoming interoperable and will be used in scenarios such as trading, lending, and collateralization.
She mentioned that one type of use that institutions value is transferring stablecoin balances to tokenized money market funds at any time to earn returns. Unlike traditional money market funds, which typically require holding until the end of the trading day to accrue interest, tokenized funds can distribute returns based on the actual holding period.
- Target beneficiaries: Qualified institutional investors
- Key assets: Backed stablecoins, tokenized money market funds
- How to use: The entire subscription and redemption process is completed on-chain.
Traditional asset management continues to increase its investment in digital assets
This collaboration also reflects Franklin Templeton's continued expansion into the digital asset business. The report mentions that the asset management company, which manages approximately $1.74 trillion, announced in April that it was preparing to establish the Franklin Crypto division, building upon its acquisition of crypto investment firm 250 Digital to advance related business.
The new division will focus on active crypto investment strategies, while Franklin Templeton continues to push for tokenized versions of traditional financial products. Meanwhile, MoonPay's business is expanding from crypto trading and payments to the tokenization of real-world assets.
As traditional financial institutions seek to move compliant investment products onto the blockchain, the direct conversion between stablecoins and tokenized funds is becoming a more concrete application scenario in institutional fund management.
