Franklin Templeton has expanded its tokenization and investor platform, Benji, to the Canton Network. This integration connects the asset manager's proprietary technology to a blockchain network specifically designed for regulated financial institutions. The integration allows Benji's tokenized assets, including its on-chain U.S. government money market fund, to be utilized as collateral and liquidity within Canton's Global Collateral Network.
Each Benji token represents a share in Franklin Templeton's tokenized money market fund. Yields are calculated intraday, and ownership is recorded on-chain. This collaboration is intended to link regulated tokenized investment products with institutional digital asset markets, as an increasing number of traditional financial institutions explore blockchain adoption amidst clearer regulatory frameworks.
Canton Network's Institutional Focus
Canton's Global Collateral Network facilitates the connection of banks, market makers, and asset managers. This network enables them to tokenize and mobilize assets for collateral management and settlement. The network's strong institutional focus has attracted significant backing from major players, including HSBC and BNP Paribas. Its developer, Digital Asset, recently secured $135 million in funding to expand Canton's infrastructure and ecosystem.
By joining Canton, Franklin Templeton is adding regulated on-chain investment products to a growing list of tokenized instruments on the network. This move further bridges the gap between traditional finance and digital asset markets and represents another step in the growth of institutional blockchain infrastructure for tokenized investment products.
The Rise of Tokenized Real-World Assets
Franklin Templeton is among a growing number of major financial institutions that are embracing the tokenization of real-world assets. Hashgraph CEO Eric Piscini attributes this trend partly to the increasing clarity of rules in major markets. He points to initiatives such as BlackRock's tokenized fund projects, Citi's exploration of digital asset custody, and Franklin Templeton's own Benji platform as key examples of this shift.
Proponents of tokenization suggest that trillions of dollars in real-world assets (RWAs) could eventually move on-chain. They highlight potential benefits such as faster settlement times, improved transparency, reduced operational costs, and enhanced liquidity. According to industry data, the total value of tokenized real-world assets, excluding stablecoins, has grown to approximately $36.6 billion.
Institutional funds constitute about $3 billion of this total, while tokenized U.S. Treasurys account for approximately $8.4 billion. The tokenized RWA market has experienced substantial expansion throughout the current year, driven by institutional capital seeking greater efficiency through crypto-as-infrastructure solutions.