Payward, the parent company of crypto exchange Kraken, is working with asset manager Franklin Templeton to expand the use of tokenized financial products for institutional investors.
The companies said Tuesday that they will develop a range of blockchain-based investment offerings, including tokenized yield products, tokenized stocks and custody services linked to digital assets.
The move comes as large financial firms explore testing tokenized versions of conventional assets. BlackRock, Fidelity and JPMorgan have expanded blockchain-related financial products in the past two years, particularly tokenized Treasuries and money market funds.
Tokenization refers to the representation of traditional financial assets, such as stocks, bonds or money market funds, on blockchain networks, where they can be traded and settled digitally. Supporters argue that the approach can reduce settlement times, expand market access and allow assets to move more easily between financial platforms.
The collaboration unites two companies that have taken different paths towards tokenized finance. Franklin Templeton has been creating blockchain-based investment products for years. Payward has focused on cryptocurrency trading infrastructure through Kraken and its xStocks tokenized stock platform, which the company says has processed more than $30 billion in trading volume since its inception in 2025.
The companies plan to explore actively managed tokenized investment products that could be traded on-chain and available to institutional investors and, in some jurisdictions, retail Kraken users.
Kraken also plans to integrate BENJI, Franklin Templeton’s suite of tokenized money market funds, into its platform. The funds could serve as collateral or cash management tools for institutional trading clients seeking blockchain-based alternatives to traditional treasury operations.
Analysts see tokenized Treasury funds as one of the fastest-growing digital asset sectors because they offer returns tied to government securities while operating on blockchain rails. In practice, that can allow institutions to move collateral 24 hours a day rather than waiting for banking hours or multi-day settlement periods.
Read more: Kraken Parent Payward Seeks New Funding at $20B Valuation Ahead of Planned IPO
