Payward Inc.—the parent company of the global cryptocurrency platform Kraken—has formed a strategic partnership with Franklin Templeton, a leading global investment manager renowned for its pioneering work in digital assets. Announced recently this month, the collaboration focuses on accelerating the mainstream use of tokenized investments, embedding Franklin Templeton’s BENJI suite of global tokenized money market funds into Kraken’s ecosystem, and developing a lineup of tokenized yield products.
The partnership unites Franklin Templeton’s deep expertise in asset management and tokenization with Payward’s strengths in cryptocurrency-native trading, secure custody services, and on-chain infrastructure.
Together, the firms plan to migrate conventional financial instruments onto blockchain networks, broadening their reach and functionality within digital asset environments.
This effort spans tokenized equities, institutional-grade custody solutions, actively managed yield instruments, and streamlined access to institutional crypto liquidity through Kraken’s over-the-counter trading desks and prime brokerage services.
It represents one of the most concrete examples to date of how legacy finance and crypto markets are actively converging.Tokenization sits at the core of the initiative.
Payward’s xStocks framework, which has already generated more than $30 billion in trading volume since its 2025 launch, will serve as the backbone for introducing new actively managed investment strategies developed alongside Franklin Templeton.
These on-chain offerings will make sophisticated portfolio approaches from one of the world’s largest asset managers directly tradable on blockchain networks.
In parallel, the partners will design and roll out tokenized yield-focused products tailored primarily for institutional clients, with potential availability to a wider user base where regulations permit.
These instruments are intended to combine professional portfolio management with blockchain advantages such as real-time transparency, operational flexibility, and programmable features that enhance investor control.
To boost practical utility, BENJI—Franklin Templeton’s collection of tokenized money market funds—will be integrated across Kraken’s platform.
This move targets a range of institutional applications, aiming to improve capital efficiency and streamline operations in digital markets.
Payward Co-CEO Arjun Sethi described the partnership as advancing a future where the line between conventional assets and digital systems fades entirely.
He pointed out that such alliances are creating entirely new product categories—ones that pair the long-established credibility of experienced fund managers with the innovative programmability of blockchain technology, possibilities that simply did not exist a few years ago.
Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, echoed the sentiment, noting that the real priority lies in making on-chain assets more versatile for every type of market participant.
The collaboration, she said, responds to the growing demand for solutions that serve both crypto-native users and traditional institutions as capital increasingly flows through blockchain channels.
Franklin Templeton has been a key player in digital asset focused innovation since 2018, blending token economics research, data science, and technical capabilities to develop offerings.
This latest venture underscores the accelerating fusion of traditional finance and cryptocurrency sectors.
As with any tokenized asset, investors should conduct thorough due diligence and consult legal, tax, and financial professionals.
Product availability varies by jurisdiction, and tokenized offerings are created and distributed by Payward. While Franklin Templeton manages related strategies, it does not issue, promote, or endorse the tokenized platforms or versions themselves.
Participants should be aware of risks including platform reliability, pricing accuracy, regulatory uncertainty, blockchain volatility, and security considerations. This alliance signals a maturing phase for institutional digital finance, where crypto and digital assets innovation meets established expertise to unlock new opportunities in tokenized markets.