• Franklin Templeton launches its DeFi solution on Ethereum.
• The firm’s regulatory-compliant stack will issue and manage tokens.
• The solution is an upgrade in a 50-year-old infrastructure.

Franklin Templeton, a leading asset management company, has achieved another milestone in its DeFi implementation process. The firm recently launched its innovative tokenization project, Benji, on Ethereum, marking its fifth platform integration this year after Aptos, Avalanche, Arbitrum, and Base. Notably, Benji is now available on seven platforms, joining its previous presence on Stellar and Polygon.

🚨$1.6 TRILLION FRANKLIN TEMPLETON’S TOKENIZATION PLATFORM!

Sandy Kaul is the Head of Innovation Strategies at Franklin Templeton talks about the firm’s Benji Tokenization platform which includes a KYC AML Wallet system.

The Benji tokenization platform was recently launched on… pic.twitter.com/ElNcuzmf8R

— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) December 27, 2024

In a recent podcast, Sandy Kaul, Head of Innovation Strategies at Franklin Templeton, revealed that the asset management company started building its DeFi solution in 2017. Further, Kaul stated that the firm has built a stack designed to issue and manage tokens, incorporating a wallet system that complies with KYC and AML standards.  

According to Kaul, Franklin Templeton operates a regulated wallet system and securely manages the keys in a cold storage secure location. Further, the company executes agency work, allowing users to issue regulated funds via its network, handling the funds’ subscriptions and redemptions, and tracking shareholders’ changes. The firm also manages yields, interest payments, and corporate actions via its on-chain stack.

Read also : Institutional Adoption of Crypto as Franklin Templeton Sees New Asset Era

Kaul stated that the newly launched stack allows Franklin Templeton to issue all regulatory reporting and facilitates the exchange of stablecoins within its network, seamlessly moving them into its money market funds that provide yield.

Franklin Templeton’s innovation highlights the growing adoption of DeFi in the mainstream. It emphasized how emerging technology can allow traditional industries to scale, allowing asset management companies to explore new frontiers while enhancing their products. Kaul described the process as an upgrade to the company’s 50-year infrastructure and moving away from a complex account-based system to one that unifies investors’ funds via the new wallet system.

Beyond funds unification, Kaul noted that the newly created wallet introduces an interoperable and leverageable environment for the users of the platform and believed that the shift would significantly alter the system and open opportunities for investing.