Binance and Franklin Templeton have formed an alliance to create and distribute tokenized products, combining the exchange’s reach with the asset manager’s institutional capabilities. The move brings together Binance’s scale and Franklin Templeton’s $1.6 trillion in assets under management to broaden the institutional offering and accelerate asset tokenization. The development matters for asset managers, institutional traders, and custodians due to its likely impact on digital product distribution and liquidity.
Partnership overview
The partnership joins Binance’s market platform, with more than 280 million users, with Franklin Templeton’s management and technology expertise. The focus is the creation and distribution of tokenized funds as well as other instruments, and the teams will use the infrastructure of both firms to execute the strategy and expand institutional access.
Franklin Templeton highlighted its Benji platform for the management and distribution of tokenized funds, emphasizing that the platform supports regulatory compliance and operational effectiveness required for institutional-grade products.
Sandy Kaul, EVP and Head of Innovation at Franklin Templeton, stated that blockchain is an opportunity to reimagine old systems, underscoring the plan to combine institutional scale with Binance’s technology knowledge to accelerate product development.
Market size and existing products
Tokenization represents real-world assets as tokens on a blockchain, which can enable fractionalization and greater liquidity across investor segments. The potential market is substantial, with McKinsey estimating tokenized assets could reach $2 trillion by 2030, signaling significant room for growth in both retail and institutional channels.
Franklin Templeton already operates tokenized funds, including its OnChain U.S. Government Money Market Fund (FOBXX), which has accumulated more than $740 million. This existing product base provides operational experience that can inform the alliance’s roadmap.
Distribution, compliance, and competitive context
The collaboration may give traditional managers a route to offer tokenized products to a wider customer base through Binance’s distribution and Franklin Templeton’s fund-management capabilities. The firms indicated that execution will depend on regulatory compliance and AML/KYC controls, aligning product rollout with applicable rules in relevant jurisdictions.
The benefits of tokenization require addressing regulatory and security challenges to ensure market integrity and investor protection. The partnership puts Franklin Templeton against other managers who explore crypto and tokenization, signaling intensifying competition around digital product design and distribution.
The alliance was publicly announced on September 10, 2025, combining Franklin Templeton’s $1.6 trillion AUM and Binance’s more than 280 million users to pursue tokenized products at scale. The next key step is launching the first tokenized products and securing approvals in suitable regions, with adoption and liquidity hinging on regulatory changes and operational testing that validate the model for broader institutional engagement.
