Binance and Franklin Templeton to Revolutionize Tokenization
Binance makes a big move. The world’s largest crypto exchange partners with Franklin Templeton, a behemoth asset manager with $1.6 trillion under management, to develop new tokenized financial products. The goal: to transition tokenization from a theoretical promise to a tangible reality.
The agreement, formalized on Wednesday, September 10, could be a turning point. On one side, the experience of a Wall Street giant that has already brought regulated funds onto the blockchain. On the other, Binance’s global infrastructure and massive user base.
Tokenization: From Promise to Practice
Sandy Kaul, executive vice president of Franklin Templeton, sums up the ambition: to provide investors with faster settlements, improved collateral circulation, and strengthened liquidity channels. In other words: to make investing more fluid, profitable, and accessible.
Binance, on its end, relies on its firepower: colossal trading volumes and a global community. If the equation works, the secondary distribution of tokenized financial securities could finally democratize, on an unprecedented scale.
A Pioneer of On-chain Finance
Franklin Templeton is not empty-handed. In 2021, the manager launched its U.S. money market fund BENJI on Stellar before expanding to Ethereum, Solana, and other networks. Today, this fund is among the largest state securities vehicles in DeFi.
This concrete expertise makes Franklin Templeton one of the pioneers on Wall Street in tokenization. The alliance with Binance is a natural extension of this avant-garde strategy.
A Global Battle Already Launched
This announcement does not come out of the blue. In Washington, Nasdaq recently submitted a rule change proposal to the SEC to allow trading of tokenized securities alongside traditional stocks. At the same time, U.S. regulators are working on a framework for blockchain assets and DeFi.
In other words: the race for tokenization is now global, involving both historic exchanges and crypto giants. The Binance – Franklin Templeton alliance exemplifies this convergence between traditional finance and decentralized infrastructures.
What Comes Next?
Details of the agreement, especially regarding the first products and their launch schedule, will be announced later in the year. It remains to be seen which jurisdictions will prioritize authorizing this new generation of funds and financial securities.
One thing is certain: if Binance and Franklin Templeton succeed in their venture, the line between traditional finance and decentralized finance could blur faster than imagined. Global markets are entering the era of “all-tokenized.”
