Payward, the parent company of cryptocurrency exchange Kraken, is partnering with asset manager Franklin Templeton to expand the use of tokenized financial products for institutional investors.
The companies said on Tuesday they would develop a range of blockchain-based investment products, including tokenized income products, tokenized shares and custody services related to digital assets.
The move comes as major financial firms explore testing tokenized versions of traditional assets. BlackRock, Fidelity and JPMorgan Chase have all expanded blockchain-related financial products over the past two years, particularly tokenized Treasury bonds and money market funds.
Tokenization refers to the representation of traditional financial assets such as stocks, bonds, or money market funds on a blockchain network and enables digital trading and settlement. Proponents argue that this approach could shorten settlement times, expand market access, and allow assets to move more easily between financial platforms.
The partnership brings together two companies that have taken different routes in tokenized finance. Franklin Templeton has spent years building blockchain-based investment products. Payward is focused on developing cryptocurrency trading infrastructure through Kraken and its xStocks tokenized stock platform, which the company said has processed more than $30 billion in trading volume since its launch in 2025.
The two companies plan to explore actively managed tokenized investment products that can be traded on-chain and available to institutional investors and, in certain jurisdictions, retail Kraken users.
Kraken also plans to integrate Franklin Templeton’s suite of tokenized money market funds, BENJI, into its platform. These funds can serve as collateral or cash management tools for institutional trading clients seeking blockchain-based alternatives to traditional treasury operations.
Analysts believe that tokenized treasury funds are one of the fastest growing areas in digital assets as they offer yields tied to government securities while operating on a blockchain rail. In effect, this allows institutions to transfer collateral around the clock without having to wait for banking hours or multi-day settlement periods.
Read more: Kraken parent Payward seeks new funding ahead of planned IPO at $20 billion valuation
