Franklin Templeton's Blockchain Fund Reshapes Finance
Franklin Templeton's Robert Crossley, head of thematic research, has shed light on the transformative potential of blockchain-based finance. He argues that the global capital markets are just beginning to understand its implications, with innovations happening beneath the surface, as seen in Franklin Templeton's launch of the first tokenised US '40 Act money market fund in 2021.
Crossley clarifies that tokenisation is not just about digitising assets and putting them on a blockchain. It's about rearchitecting systems to enable real-time ownership, programmability of assets, and lower operational friction. This shift in infrastructure is evident in Franklin Templeton's 'Benji' fund, which offers daily interest payments, full on-chain shareholder registers, and greater flexibility around collateral use, acting as a bridge between traditional and decentralised finance. With approximately $750 million in AUM, the fund caters to a diverse range of investors, from corporate treasurers to retail investors.
Blockchain technology enables real-time updates to shareholder registers, real-time interest payments, and real-time collateral control, significantly transforming the cost structure of asset management. Crossley sees public blockchains as the future, offering transparency, security, and community-driven innovation, unlike private blockchains which are merely permissioned databases. Franklin Templeton has taken proactive regulatory measures to ensure product resilience and transparency, collaborating closely with regulators and adapting operations to comply with forthcoming regulations.
Crossley's insights underscore the potential of blockchain-based finance to reshape global capital markets. Franklin Templeton's pioneering work with tokenised funds demonstrates a commitment to driving this transformation, while also ensuring robust governance and investor protection.
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