Payward, the parent company of Kraken, has entered a partnership with Franklin Templeton to build a range of blockchain-based investment products, including tokenized yield products, tokenized equities, and digital asset custody services. The effort is aimed at widening the pool of investable assets for institutions while reducing friction in administration and settlement.
New products are designed for on-chain trading
The companies said they plan to create actively managed tokenized investment products that can be traded on-chain. In selected jurisdictions, some of these offerings may also be made available to retail investors. Executives from Franklin Templeton and Payward said the partnership is intended to give institutional investors broader access to blockchain-based money market funds and other tokenized assets. The appeal for institutions is practical. Asset management can run on a 24/7 basis instead of being tied to banking hours and slower settlement cycles.
BENJI integration adds tokenized money market funds
Kraken also plans to integrate Franklin Templeton’s BENJI platform into its own system. BENJI offers tokenized money market funds, and the tie-up is expected to open new use cases in corporate treasury operations and on-chain collateral management. For institutions that need liquid collateral or want to put idle cash to work, these products combine yields linked to government bonds with the transfer speed and operational convenience associated with blockchain networks.
The source notes that tokenized treasury products are being highlighted by some industry analysts as one of the faster-growing segments in digital assets. Their attraction comes from putting traditional yield-bearing instruments on-chain, making transfers, settlement, and asset handling more compatible with digital market infrastructure.
xStocks volume shows Payward’s existing footprint
Payward already runs the global crypto exchange Kraken and operates xStocks, its tokenized equities platform. According to Payward, xStocks has processed more than $30 billion in trading volume since its launch in 2025. That figure suggests the company already has a base in tokenized equities, and the new partnership broadens that strategy beyond stock exposure into yield products and a fuller institutional service stack.
Franklin Templeton, for its part, has been one of the large asset managers with an established commitment to blockchain-based fund products. The partnership also fits a wider pattern across traditional finance. Over the past two years, firms such as BlackRock, Fidelity, and JPMorgan have launched tokenized financial products on blockchains, including treasury bond and money market fund offerings.
Why tokenization is gaining traction in finance
Tokenization refers to representing traditional financial assets such as equities, bonds, and money market funds on blockchain networks. That structure can speed up trading and settlement while keeping transactions within a secure digital environment. Supporters say it can also improve market access and make asset transfers more flexible across platforms and jurisdictions.
No launch date, first-product lineup, or market list was disclosed in the source material. Even so, the direction is clear: Kraken and Franklin Templeton are linking exchange infrastructure, tokenized equities, money market funds, and custody into a broader on-chain investment framework.