Kraken Parent Payward, Franklin Templeton to Develop On-Chain Investment Products

Payward, the parent company of cryptocurrency exchange Kraken, is partnering with global asset manager Franklin Templeton to develop tokenized financial products, in a move that underscores a broader push to expand the on-chain investment market for institutional investors.

CoinDesk reported on May 12 that the companies plan to jointly develop tokenized yield products, tokenized equities, digital-asset custody services and on-chain investment products.

Traditional financial firms have recently stepped up efforts to expand tokenization, converting assets such as government bonds, money-market funds and equities into blockchain-based instruments.

Tokenization involves issuing and trading traditional financial assets such as stocks, bonds and funds as digital tokens on blockchain networks. Industry participants expect the structure to shorten settlement times, broaden market access and improve the efficiency of asset transfers.

Franklin Templeton has continued to develop blockchain-based investment products, while Kraken has expanded related infrastructure businesses centered on its tokenized stock platform, xStocks.

According to CoinDesk, cumulative trading volume on the xStocks platform has surpassed $30 billion since its 2025 launch.

The companies are also reviewing actively managed on-chain investment products. Some of those offerings could also become available to retail Kraken users in certain countries, the report said.

Kraken also plans to integrate Franklin Templeton's tokenized money-market fund brand, BENJI, into its platform.

The product is set to be used by institutional clients as a collateral asset and cash-management tool.

Tokenized government bonds and money-market funds are among the fastest-growing areas in digital assets.

The industry is also focused on blockchain-based tokenization's ability to enable 24-hour collateral transfers and settlement without bank business hours or multi-day settlement procedures.