#FranklinAdvancesTokenizedMMFs Franklin Templeton Expands Tokenized Money Market Funds, Pioneering Institutional Blockchain Adoption

Franklin Templeton continues to lead the charge in institutional digital asset adoption. Its OnChain U.S. Government Money Fund (BENJI) has become the largest tokenized treasury product, now approaching $400 million in assets. This represents a pivotal milestone in bridging traditional finance and blockchain infrastructure.
Product Evolution: From Pilot to Production
Launched on Stellar in 2021 and expanded to Polygon in 2023, BENJI invests over 99.5% in U.S. government securities, repo agreements, and cash, maintaining the $1 NAV stability expected by money market investors. Ownership is recorded on-chain, providing transparency and efficiency without compromising regulatory compliance, a challenge most tokenized funds struggle to solve.
Competitive Differentiation
BENJI benefits from a regulatory structure under the 1940 Act, offering institutional protections absent in offshore or purely protocol-based funds. Its blockchain records integrate seamlessly with traditional transfer agent systems, and daily on-chain dividends compound automatically, delivering operational innovations unmatched by most competitors.
Technological Infrastructure
The fund employs a multi-chain strategy: Stellar for low-cost payments, Polygon for EVM compatibility, and Arbitrum for Ethereum scaling ecosystems. This hybrid model maintains regulatory compliance while achieving operational efficiency, combining the strengths of both TradFi and blockchain technology.
Strategic Implications
BENJI demonstrates that tokenization can operate within existing legal frameworks, supporting institutional adoption. Its shares serve as high-quality collateral for decentralized lending and automated market making, bridging TradFi and DeFi. Franklin’s operational experience also provides a first-mover advantage in fund flows, investor relations, and blockchain reliability.
Challenges & Forward Path
The industry faces yield compression as tokenized treasury assets exceed $1B. Regulatory uncertainties around custody rules and tax frameworks remain. Multi-chain infrastructure adds complexity but broadens investor reach. Franklin plans international expansion, native DeFi composability, and broader distribution through broker-dealers and robo-advisors.
Conclusion
Franklin Templeton’s BENJI fund represents more than a new product — it is foundational infrastructure for tokenized capital markets. By emphasizing regulatory discipline, operational reliability, and strategic technological adoption, Franklin is setting the standard for institutional blockchain adoption while solidifying its position as a durable market leader.