KEY FACTS: Franklin Templeton has expanded its Benji tokenization platform to the Canton Network, enabling its on-chain U.S. government money market fund (first launched in 2021) to serve as high-quality collateral and liquidity for institutional trades through Canton's privacy-enabled Global Collateral Network. The integration allows seamless atomic swaps, real-time collateral optimization, and reduced settlement times, building on prior Benji partnerships like VeChain for enterprise payments. Backed by Digital Asset’s $135 million funding round and supported by major banks such as HSBC and BNP Paribas, the move reflects growing regulatory clarity and institutional adoption of real-world asset (RWA) tokenization, with the non-stablecoin RWA market now at $36.6 billion, including $3 billion in tokenized institutional funds.
Source: Canton Network
Franklin Templeton Expands its Benji Tokenization Platform to Canton Network
Global investment giant Franklin Templeton has announced the expansion of its innovative Benji tokenization platform onto the Canton Network. This integration, revealed on Wednesday, positions Benji's suite of tokenized assets, including a pioneering on-chain U.S. government money market fund, at the forefront of institutional digital-asset infrastructure, enabling seamless use as collateral and liquidity in a rapidly evolving financial ecosystem.
The development comes at a time when regulatory clarity in major markets is paving the way for widespread adoption of real-world asset (RWA) tokenization. As institutions like BlackRock and Citi dip their toes into blockchain waters, Franklin Templeton's latest step not only enhances its own offerings but also signals a broader shift toward interoperable, onchain financial products that could unlock trillions in dormant capital.
The announcement features Benji, Franklin Templeton's proprietary technology platform designed to democratize access to tokenized investment products while maintaining the stringent standards of regulated finance. Launched as part of the firm's broader digital asset strategy, Benji represents a sophisticated bridge between legacy investment vehicles and the programmable efficiencies of blockchain.
Each Benji token functions as a digital share in Franklin Templeton's tokenized money market fund, which invests in short-term, low-risk U.S. government securities. This is a fully operational financial instrument where yields are calculated intraday and ownership is immutably recorded onchain. Investors can now hold, trade, and utilize these tokens in ways that were previously constrained by the siloed nature of traditional markets.
The platform's expansion to the Canton Network marks a significant evolution. Previously, Benji has made headlines for integrations like its collaboration with VeChain, which brought the tokens into enterprise payment systems. Now, by plugging into Canton's Global Collateral Network, Benji assets can serve as high-quality collateral for institutional trades, facilitating faster settlements and reducing counterparty risks. This is a foundational step toward making tokenized funds a staple in daily institutional operations.
Franklin Templeton, which manages over $1.5 trillion in assets worldwide, has long been a trailblazer in this space. The firm launched its first onchain money market fund in 2021, well ahead of many peers, and has since doubled down on tokenization as a means to enhance liquidity and transparency. "
To understand the full implications of this partnership, one must first grasp the Canton Network's role in the blockchain landscape. Developed by Digital Asset, a leading enterprise blockchain firm, Canton is no ordinary distributed ledger. It is a privacy-enabled, interoperable network tailored specifically for regulated financial institutions, allowing participants to share data and execute transactions without compromising sensitive information.
Unlike public blockchains that prioritize decentralization at the expense of compliance, Canton operates on a "network of networks" model. This architecture connects disparate systems, such as banks, asset managers, or market makers, into a unified ecosystem for asset tokenization, collateral management, and settlement. Its Global Collateral Network, a flagship feature, mobilizes tokenized assets across borders, enabling real-time collateral optimization that could slash operational costs by up to 50% in some scenarios.
Canton has already garnered heavyweight backing, including from global banking titans HSBC and BNP Paribas. Just last month, Digital Asset secured a staggering $135 million in funding to supercharge the network's infrastructure and onboard more participants. This capital infusion is earmarked for expanding Canton's ecosystem, with a focus on integrating more regulated products like Benji.
The integration process shows that Benji's tokenized assets are now natively compatible with Canton's protocols, allowing for atomic swaps and collateral postings in a matter of seconds rather than days. By embedding Benji into this framework, Franklin Templeton gains access to a vetted pool of institutional counterparties, while Canton benefits from the addition of battle-tested, yield-bearing assets.
The excitement around this collaboration extends far beyond the involved parties. Eric Piscini, CEO of Hashgraph, a firm deeply embedded in enterprise blockchain solutions, hailed the move as a symptom of maturing markets. In a recent interview, Piscini attributed the surge in tokenization efforts to "rules getting clearer in major markets." He pointed to Franklin Templeton's Benji as a prime example, alongside BlackRock's launch of tokenized index funds and Citi's forays into digital asset custody services.
Franklin Templeton's Benji expansion builds on a web of strategic alliances. The VeChain integration, for instance, opened doors for enterprise-grade payments using tokenized yields, allowing corporates to settle invoices with fractional shares of money market funds. Now, with Canton in the mix, the platform's reach extends to collateralized lending and derivatives markets, where tokenized RWAs could serve as margin for everything from forex trades to repo agreements.
Looking ahead, both Franklin Templeton and Digital Asset have teased further enhancements. Plans include deeper interoperability with other blockchain protocols, enhanced smart contract capabilities for automated yield distribution, and pilot programs for cross-border collateral mobility.
The implications of Franklin Templeton's Canton integration ripple across the financial world. At its core, this is about efficiency: Tokenization promises faster settlements (from T+2 to near-instant), unparalleled transparency via immutable ledgers, and dramatically lower costs by eliminating intermediaries. For investors, it means greater access to premium assets previously reserved for whales. It means retail participation in government-backed funds with the click of a wallet.
Information Sources:
If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!
This post was created via INLEO. What is INLEO?
INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application, Inleo.io, allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.
Let's Connect
Hive: inleo.io/profile/uyobong/blog
Twitter: https://twitter.com/Uyobong3
Discord: uyobong#5966
Posted Using INLEO