Investment giant Franklin Templeton pursues digital asset leadership position

Franklin Templeton, a global investment firm with over $1.57 trillion in assets under management, is leading the charge in the digital assets field with its innovative Benji technology platform. Max Gokhman, the deputy chief investment officer for Franklin Templeton Investment Solutions, joined the company in December 2022, drawn by the firm's forward-thinking approach.

Gokhman believes that tokenization will democratize access for retail investors to asset classes such as private markets. He argues that this innovation will create new asset classes and could potentially disrupt traditional finance. One of the biggest lessons from disruption, according to Gokhman, is that giants can get toppled quickly.

The Benji technology platform, first developed by Franklin Templeton in 2017, is a blockchain-integrated stack for trading, management, and administration of token-based investments. It offers a variety of features that set it apart in the digital assets market.

Intraday Yield and Onchain Settlement

One of the standout features of the Benji platform is its intraday yield functionality. In traditional finance, interest is typically calculated at the end of a trading day and distributed to investors at the end of each month. However, the Benji platform enables proportional calculation and distribution of yield, down to the second, when a tokenized security is transferred. This means that investors can earn interest for part of a day even if they transfer a tokenized security to another investor.

The platform also offers fully onchain settlement, which allows transactions to be processed and recorded instantly, eliminating the need for intermediaries and significantly reducing transaction costs.

Multiple Blockchains and Permissioned Wallet-to-Wallet Transfers

The Benji platform supports multiple blockchain networks, including Aptos, Arbitrum, Avalanche, Base, Ethereum, Polygon, Solana, Stellar, and more. This flexibility allows the platform to cater to a wide range of digital assets and use cases.

Franklin Templeton's Benji technology platform has also added compliant, permissioned wallet-to-wallet token transfers on supported blockchain networks. This feature ensures secure and compliant transfers of tokenized assets, a crucial aspect for institutional and retail investors alike.

Tokenizing Real-World Assets

Franklin Templeton is working on projects that involve tokenizing real-world assets, such as royalty streams, fine art, and collectible assets. This move towards tokenization will open up these asset classes to a wider pool of investors, making them more accessible and liquid.

In 2024, the first fully tokenized UCITS fund in Luxembourg was launched on the Benji technology platform. The firm also launched the first U.S.-registered mutual fund in 2021 that used blockchain-integrated technology to process transactions and record share ownership.

Regulatory Approval and White Label Technology

Franklin Templeton has secured regulatory approval to launch the first retail tokenized fund in Singapore this year. The Benji platform is also available as a white label technology for banks or asset managers to tokenize securities, further expanding its reach and impact in the digital assets market.

Roger Bayston, head of digital assets at Franklin Templeton, believes that features like intraday yield have the potential to become an industry standard. Venture capital firm a16zcrypto agreed, stating that BENJI tokens act as the legal system of record, making onchain entries the legally binding source of truth.

Sandy Kaul, head of innovation at Franklin Templeton, states that the firm is here to help shape the future, which will be a blockchain-based system. With its innovative technology, extensive resources, and forward-thinking approach, Franklin Templeton is undoubtedly a key player in the digital assets revolution.