Franklin Templeton introduces Benji Token to the Canton network, marking a new phase for institutional tokenization funds.

In November 2025, asset management giant Franklin Templeton, which manages over $15 trillion in assets, announced that it would connect its blockchain infrastructure to the Canton Network, supported by financial institutions such as Goldman Sachs Group and Tradeweb Markets Inc. This move will significantly expand the institutional adoption of its Benji Token—as digital shares of money market funds—currently, its on-chain U.S. government money market fund has reached a scale of $845 million.

Canton Network is gaining favor from Wall Street institutions due to its transaction privacy protection features, and the value of the physical assets carried by the network has reached 396 billion dollars, more than double the on-chain assets of Ethereum.

Strategic Positioning: Precisely Aligning with Institutional Needs

Sandy Kaul, head of innovation at Franklin Templeton, revealed in an interview that the strong demand for trading privacy among institutional investors is a key factor in choosing the Canton Network. Unlike traditional public blockchains that make all transaction details public, Canton allows specific elements of transactions to remain private, which aligns with financial institutions' consistent requirements for the protection of trade secrets and trading strategies. Kaul emphasized, “Institutional investors need trading privacy; they do not want transaction records to be recorded on a public blockchain.”

This strategic move comes as the Trump administration promotes crypto-friendly policies, with Wall Street institutions accelerating the adoption of blockchain and digital assets to streamline and modernize traditional financial processes. Franklin Templeton has been at the forefront of tokenization innovation among traditional asset management companies since launching the first on-chain U.S. government money market fund on the Stellar public Blockchain in 2021, with its on-chain fund size growing from an initial symbolic holding to nearly $850 million.

Technical Breakthrough: Capital Efficiency Advantages Highlighted

Benji Token, as the digital representation of the Franklin Templeton Money Market Fund, shows significant advantages in capital efficiency. Unlike traditional stablecoins, the yield of Benji is calculated intraday and paid daily, which means that institutions holding these tokens or using them as collateral can achieve higher capital utilization efficiency. Kaul points out that this characteristic makes Benji Token more attractive than stablecoins in institutional fund management scenarios.

Comparison of Benji Token and Stablecoin Yield Mechanisms

Benji Token: Daily yield calculation, daily distribution, profits directly attributed to holders.

Traditional stablecoins: Issuers earn returns on reserve assets, usually not distributed to holders.

Capital Efficiency: Benji supports real-time collateral movement and reuse.

Settlement Speed: Near-instant cross-institution asset transfer

Although stablecoins are becoming increasingly popular as a payment tool, their profit distribution mechanism has inherent flaws. Issuers earn returns by holding reserve assets such as U.S. Treasury bonds, but these returns are rarely passed on to token holders, prompting institutional investors to seek alternatives. The Benji Token addresses this core pain point by directly distributing fund profits to holders.

Liquidity Revolution: Reshaping the Collateral Market

Franklin Templeton expects the Benji Token to significantly enhance the liquidity of collateral. In traditional financial systems, the movement and reuse of collateral typically take days and involve complex processes, while blockchain-based tokenized collateral allows for nearly instantaneous cross-institution transfers and reuse. This efficiency improvement has profound implications for capital market operations, especially for derivative trading and securities financing businesses that require frequent issuance and adjustment of collateral.

Canton Network, as the infrastructure for this transformation, has recently experienced “parabolic growth.” According to the latest report from Copper Research, the network collaborated with Euroclear Bank SA to launch the first phase of a global collateral network earlier this year, exploring the use of Blockchain technology for real-time cross-border collateral movement. This initiative has seen active participation from several globally systemically important banks, including Goldman Sachs, Deutsche Bank, and BNP Paribas.

Ecological Game: Competition Landscape Accelerates Evolution

In the field of institutional-grade blockchain networks, the Canton Network is rapidly establishing its leading position. Currently, the physical assets (including stablecoins) supported by this network amount to $396 billion, while similar assets on Ethereum total $192 billion. This data highlights the appeal of proprietary blockchain networks over public chains in scenarios where institutions have special requirements for privacy and compliance.

Main Institutions Blockchain Network Asset Scale

Canton Network: $396 billion (physical assets + stablecoins)

Ethereum: $192 billion (physical assets)

Stellar: Franklin Templeton Fund 845 million dollars

Application Scenario: Canton focuses on cross-institution collateral management.

Franklin Templeton's involvement further enriches the ecosystem of the Canton Network. Participants can now hold and trade Benji Tokens on this network, adding high-quality liquidity assets to the entire system. This strengthening of network effects may attract more institutions to join, creating a virtuous cycle and accelerating the migration of traditional financial infrastructure to Blockchain.

Policy Tailwind: Regulatory Environment Continues to Improve

The crypto-friendly policies of the Trump administration have provided strong momentum for institutional blockchain applications. The clear guidelines issued by the Office of the Comptroller of the Currency in 2025 have removed obstacles for banks participating in blockchain and digital asset activities, while the Securities and Exchange Commission's clearer stance on token classification has also reduced compliance uncertainty. This improvement in the policy environment is a key factor for traditional financial institutions like Franklin Templeton to increase their investments in blockchain.

At the same time, global regulatory authorities are also increasing their recognition of institutional-level Blockchain networks. The European Securities and Markets Authority recently released detailed rules regarding the pilot system for Distributed Ledger Technology, while the Monetary Authority of Singapore has launched a regulatory sandbox for institutional digital assets. These developments create a more consistent regulatory environment for cross-border Blockchain applications.

Future Outlook: In-Depth Analysis of Industry Impact

Franklin Templeton's move could trigger a chain reaction in the asset management industry. Other competitors managing trillions in assets, such as BlackRock and State Street Global, are likely to accelerate their tokenization strategies to remain competitive. This collective action will drive more traditional assets on-chain, further expanding the influence of blockchain in mainstream finance.

From a technological evolution perspective, the integration of institutional blockchains and public blockchains may become an important trend in the next phase. Franklin Templeton's strategy of operating similar products on both the Canton Network and Stellar public blockchain indicates that a hybrid architecture may emerge in the future—settlements between institutions will be conducted through private networks like Canton, while distribution to a broader range of investors will be achieved through public blockchains.

Investment Wisdom: The Balance of Risk and Opportunity

For investors, tokenizing physical assets offers new opportunities for returns and risk characteristics. Products like the Benji Token combine the relative safety of traditional money market funds with the efficiency advantages of blockchain technology, providing new tools for institutional cash management. However, risks related to smart contracts, changes in regulatory policies, and challenges in technological implementation are still factors that need to be assessed with caution.

In the long term, tokenized assets may reshape the competitive landscape of the asset management industry. Companies that implement blockchain strategies early and successfully may gain significant cost advantages and product differentiation capabilities, while those that are slow to act face the risk of losing market share. The winners and losers in this transformation process will gradually become clear in the next three to five years.