Franklin Templeton Asset Management Company announced this week that it has extended the benji Technology Platform’s tokenization infrastructure onto the Canton Network–marking a significant move deeper into institutional tokenized finance. [Dex] “” | CoinDesk + 2 (decrypt)
Here is an explanation of what tokenization entails and its implications in traditional finance.
Franklin Templeton’s Benji Platform, launched several years ago to facilitate tokenized funds issuance, transfer, and settlement, will now operate on Canton Network, an institutionally designed public-permissioned blockchain. Decryption will take place in real time using Canton Network technology.
Franklin Templeton now has access to Canton’s Global Collateral Network, which facilitates liquidity flows, collateral reuse and on-chain settlement of regulated investment products. (Source: CoinDesk)
Franklin Templeton’s Head of Digital Assets, Roger Bayston, stated that this move aims to meet institutional clients where they stand: offering privacy, compliance and blockchain-native settlement solutions. Cryptonews covered this story.
Benji was initially deployed on public chains such as Stellar, Polygon, Arbitrum, Avalanche, and Aptos; now it has added Canton’s chain, providing access to infrastructure with both permissioned access and interoperability specifically tailored for institutional investors.
- Institutional Tokenization Advances. The move shows that institutional tokenization is making strides forward. Large asset managers no longer experimenting with tokenized finance as a side project–they’re building infrastructure. With Benji + Canton as part of their offering, regulated funds, custodians, market makers, banks can gain access to tokenized assets with real operational rails for tokenized assets.
- Liquidity & Collateral Innovation. Canton’s network is optimized to manage tokenized real-world assets (RWAs) and collateral flows; according to one report, over US $6 trillion worth of Treasurys are processed daily as collateral flows on this network, as well as over US $280 billion daily repo transactions. Enfin, Canton decryption capabilities make use of cryptographic hashes.
Benji brings invaluable infrastructure to Franklin Templeton and its clients. - Joining TradFi and DeFi. This collaboration highlights the shifting boundaries between traditional (“TradFi”) and decentralized finance (“DeFi”). With traditional issuers engaging with institutional-grade blockchains, tokenization of funds, real estate, private debt or other assets becomes more mainstream.
Implementation & Rollout Details (pdf).
Franklin Templeton’s announcement notes that existing tokenized funds issued via benji will benefit from Canton integration, while new offerings could leverage its features such as real-time settlement, tokenized shares and compliance built into protocol rules. Franklin Templeton indicates this move may offer investors better value. +1
Canton’s ecosystem page now lists Franklin Templeton as both a validator and tokenized asset issuer, suggesting a greater role than just “user.”
Institutional clients using Canton Network can select assets tokenized via Benji on Canton, with all regulatory safeguards (KYC/AML, custody and approvals) built-in.
Challenges & Caveats
While promising, several factors should still be kept in mind when making any business decision:
Adoption and Scale. Implementing Canton is no guarantee of high volumes; rather it will take time for tokenized funds on Canton to attract capital, secondary market liquidity and ecosystem support (custodians, market-makers and compliance infrastructure).
Regulatory Clarity. Tokenized assets are still making their way through global regulatory frameworks; issuers must abide by fund rules, securities laws, and be mindful of how tokenization intersects with regulation.
Interoperability & Fragmentation. New tokenization platforms are emerging across various blockchains; Franklin Templeton already supports public chains as well as permissioned networks, and this fragmented web of platforms may impede adoption until interoperability improves.
Industry watchers will likely keep an eye out in the coming months for new fund launches by Benji/Canton, institutional participants using the collateral network and tokenized asset flows on-chain being publicly tracked. If successful, this collaboration could accelerate tokenizing real world assets across asset classes from pilot to production stages–shifting away from narratives about tokenization being all or nothing to becoming reality with real institutional muscle behind this push to tokenize everything.
Franklin Templeton’s decision to integrate its Benji Technology Platform into the Canton Network marks an important step in the evolution of tokenized finance. By unifying asset manager infrastructure with institutional-grade blockchain network technology, Franklin Templeton signals that tokenized funds have moved past experimental phases. Going forward, their path forward will test if their infrastructure results in real capital flows, regulatory clarity and tangible changes to how assets are issued, traded and settled; but now more than ever their blueprint is becoming clear.
