Payward Inc., the parent company of cryptocurrency exchange Kraken, and global asset management giant Franklin Templeton announced a strategic collaboration on May 12, 2026, to develop tokenized investment products and expand onchain financial infrastructure for both institutional and retail clients. The partnership marks a significant step in the convergence of traditional finance and blockchain technology.
Core of the Deal: Active Managed Strategies and BENJI Integration
Under the agreement, Franklin Templeton's approximately $1.74 trillion in assets under management will be integrated with Payward's xStocks tokenized equity framework, which has processed over $30 billion in trading volume since its launch in 2025. The two firms plan to build actively managed investment products directly on blockchain networks, making professionally managed strategies from a major traditional asset manager programmable and tradeable onchain.
Additionally, the companies will co-design tokenized yield products initially targeting institutional clients, with potential expansion to Kraken's broader retail user base where regulations permit. These products emphasize transparency, programmability, and flexibility. Kraken will integrate Franklin Templeton's BENJI token suite for institutional use. BENJI tokens represent shares in the Franklin Onchain U.S. Government Money Fund and related vehicles, serving as collateral or yield generators in digital markets.
Executive Perspectives: Unlocking New Asset Classes
Arjun Sethi, co-CEO of Payward and Kraken, remarked: “Collaborations like this unlock a new class of products that wouldn’t have been possible even three years ago: assets that carry the credibility of multi-decade managers and the programmability of digital infrastructure.” Sandy Kaul, head of digital assets and innovation at Franklin Templeton, stated: “By expanding the utility of BENJI and exploring new tokenized products, our work with Payward reflects the growing need to serve both digital-native and institutional customers with solutions built for how capital increasingly moves onchain.”
Franklin Templeton’s Blockchain Evolution
Franklin Templeton has pursued blockchain integration since 2018 and launched FOBXX, the first U.S.-registered mutual fund to record share ownership on a public blockchain, in April 2021. The fund now operates across Stellar, Solana, Base, Polygon, Aptos, Arbitrum, Avalanche, and other networks. In March 2026, the firm partnered with Ondo Finance to tokenize five of its ETFs for onchain distribution and around-the-clock trading. In April 2026, it launched its Franklin Crypto unit through the acquisition of 250 Digital, a CoinFund spinoff, with part of the transaction settled using BENJI tokens.
xStocks Framework and Broader Tokenization Trend
Payward's xStocks framework offers tokenized 1:1 representations of U.S. stocks and ETFs for eligible non-U.S. clients, enabling extended trading hours and DeFi composability, including lending and decentralized exchange trading. In early 2026, Payward also partnered with Nasdaq to develop specialty equity token designs supporting automated corporate actions, proxy voting, and dividend distribution.
The collaboration highlights a broader industry push toward real-world asset tokenization. Traditional assets gain blockchain-native benefits such as 24/7 availability and composability with DeFi protocols, while onchain infrastructure gains access to regulated, institutional-grade products. Risks disclosed include regulatory uncertainty, blockchain security vulnerabilities, pricing and settlement accuracy, and operational factors. Tokenized products are issued and distributed by Payward; Franklin Templeton manages underlying strategies but does not issue or endorse tokenization platforms. Availability varies by jurisdiction.
Both firms participate in DTCC tokenization working groups, positioning them as leading integrators of traditional finance and crypto-native infrastructure as institutional demand for onchain products accelerates.