Franklin Templeton, MoonPay Partner on Stablecoin-to-Tokenized Money Fund Swaps

Franklin Templeton is partnering with MoonPay to build on-chain infrastructure that will allow institutional investors to convert stablecoins into tokenized money market funds. The move is aimed at linking stablecoins with yield-bearing cash-like assets 24 hours a day.

CoinDesk reported on June 2 that the partnership will let institutional investors move positions on-chain between supported stablecoins and Franklin Templeton's tokenized money market fund.

The integration will connect Franklin Templeton's Benji Technology Platform with MoonPay Trade infrastructure. Eligible institutional investors will be able to convert stablecoins into tokenized money market fund exposure, and back into stablecoins, without leaving blockchain networks.

Franklin Templeton is expanding its digital-asset business. The firm, which manages $1.74 trillion in assets, said in April that it plans to launch Franklin Crypto following its acquisition of digital-asset investment firm 250 Digital.

Sandy Kaul, Franklin Templeton's head of innovation and digital assets, said she views 2026 as "the year of the universal liquidity layer." She said stablecoins, tokenized funds and digital currencies will become interoperable and be used across trading, lending and collateral management.

Kaul identified moving stablecoin balances into tokenized money market funds to earn yield around the clock as one of the most important use cases for institutional investors. "We trade 24/7 in crypto markets," she said.

Traditional money market funds typically require investors to hold positions through the end of the trading day to receive interest. Tokenized funds, by contrast, can distribute yield based on the actual time an investor holds the asset.

Kaul said demand from institutions for the feature has been strong. She said there has been "tremendous demand" for the ability to move between stablecoins and tokenized money market funds at any time while maintaining exposure to yield-bearing assets.

The partnership also fits MoonPay's broader expansion beyond crypto trading and payments infrastructure into tokenized real-world assets, or RWAs. The market expects the link between stablecoins and tokenized funds to broaden the ways institutional capital is deployed on-chain.