Payward, the parent company of crypto exchange Kraken, has announced a strategic partnership with asset manager Franklin Templeton to develop tokenized financial products for institutional investors. According to reports from the companies, the collaboration will focus on blockchain-based offerings including tokenized yield products, tokenized equities, custody services and actively managed onchain funds. Some of these products may be available to retail Kraken users in certain jurisdictions, expanding the platform's institutional capabilities. The partnership represents a significant step forward in institutional digital finance, combining Franklin Templeton's years of blockchain-based investment product development with Payward's focus on crypto trading infrastructure through Kraken and its xStocks tokenized equities platform.
The partnership reflects broader Wall Street interest in tokenized finance, with major financial firms expanding blockchain-related products. As reported by the companies, BlackRock, Fidelity and JPMorgan have all expanded blockchain-related financial products over the past two years, particularly in tokenized Treasuries and money market funds. Tokenization involves representing traditional financial assets such as stocks, bonds or money market funds on blockchain networks, allowing for digital trading and settlement that can reduce settlement times and expand market access. The collaboration positions both companies to capitalize on this growing trend as institutional adoption of digital assets continues to accelerate.
Kraken plans to integrate Franklin Templeton's BENJI suite of tokenized money market funds into its platform, which could serve as collateral or cash management tools for institutional trading clients. According to the companies, these funds offer yields tied to government securities while operating on blockchain rails, allowing institutions to move collateral around the clock instead of waiting for banking hours or multiday settlement periods. The collaboration combines Franklin Templeton's years of blockchain-based investment product development with Payward's focus on crypto trading infrastructure through Kraken and its xStocks tokenized equities platform.
The firms plan to explore actively managed tokenized investment products that could trade onchain and become available to institutional investors and, in some jurisdictions, retail Kraken users. As reported by the companies, Kraken's xStocks tokenized equities platform has processed more than $30 billion in trading volume since starting up in 2025, demonstrating the platform's existing institutional capabilities. Analysts view tokenized Treasury funds as one of the fastest-growing sectors in digital assets due to their ability to offer government security yields while operating on blockchain infrastructure. The partnership is expected to accelerate the development and adoption of these innovative financial products across institutional markets.
