Franklin Templeton has expanded its digital asset strategy through a new partnership with MoonPay that creates an onchain pathway for institutional investors to move between supported stablecoins and the asset manager’s tokenized money market fund without leaving blockchain networks.
Market Outlook
The integration links Franklin Templeton’s Benji Technology Platform with MoonPay Trade’s infrastructure, establishing a workflow intended to make it easier for eligible institutions to exchange stablecoin balances for exposure to the firm’s tokenized money market fund and convert back again. By keeping the process entirely onchain, the firms aim to streamline access to yield-bearing, tokenized cash management instruments while maintaining continuous blockchain-based activity.
The move comes as Franklin Templeton deepens its push into digital assets and tokenized versions of traditional financial products. In April, the $1.74 trillion asset manager announced plans to launch Franklin Crypto, a dedicated cryptocurrency division anchored by the acquisition of crypto investment firm 250 Digital. The new unit is set to focus on active crypto investment strategies alongside the firm’s continuing work on tokenized funds.
Analyst Views
Sandy Kaul, Franklin Templeton’s head of innovation and digital assets, framed the initiative within a broader outlook for 2026. She described the year as “the year of the universal liquidity layer,” an environment in which stablecoins, tokenized funds, and other forms of digital money operate interoperably across trading, lending, and collateral applications. That perspective suggests a market where different onchain instruments can be moved and combined more seamlessly as institutions manage liquidity and risk across multiple use cases.
Within this view, one of the most closely watched use cases is the ability to sweep stablecoin balances into tokenized money market funds to earn yield around the clock. Kaul emphasized that crypto markets function continuously, and tokenized funds can distribute yield according to the precise period an investor holds the asset. This contrasts with traditional money market funds that typically require investors to maintain positions through the end of a trading day to receive interest. The firm’s expectation is that a 24/7 construct could align more closely with digital asset market hours and operational needs.
Key Factors
The onchain workflow enabled by the Benji Technology Platform and MoonPay Trade is designed to remove the need to step off blockchain networks when reallocating between stablecoins and tokenized fund positions. For institutions that operate within crypto market infrastructure, the ability to remain onchain while adjusting exposures may be viewed as a practical consideration for treasury, collateral, or trading-related activities that occur at all hours.
Kaul indicated that institutional interest in this functionality has been strong, pointing to demand for the ability to move between stablecoins and tokenized money market funds at any time while maintaining exposure to yield-generating assets. From a market outlook perspective, that demand underpins the firm’s thesis that interoperable forms of digital money and tokenized funds can become building blocks for broader onchain finance activity.
Future Trends
The partnership also reflects MoonPay’s expansion beyond crypto trading and payments into tokenized real-world assets. This area is drawing attention from traditional financial institutions that are exploring how regulated investment products can be brought onchain. The collaboration with Franklin Templeton positions MoonPay’s infrastructure alongside a tokenized fund platform, aligning with expectations for increased institutional engagement with tokenized instruments.
Looking ahead, Franklin Templeton’s forecast for a universal liquidity layer highlights the firm’s belief that interoperability will be a defining theme for digital assets in 2026. If stablecoins and tokenized funds can be combined and exchanged through standardized, onchain workflows, market participants may evaluate new approaches to managing liquidity across trading venues, lending arrangements, and collateral practices that already operate continuously.
The establishment of Franklin Crypto, anchored by the acquisition of 250 Digital, provides additional context for the firm’s strategy. With a unit dedicated to active crypto investment strategies and an emphasis on building tokenized versions of established financial products, Franklin Templeton’s roadmap indicates a multi-pronged approach: offer exposure to digital assets through specialized investment capabilities while enabling institutional workflows that keep assets onchain.
As the partnership with MoonPay rolls out, the outlook communicated by Franklin Templeton centers on practical access to yield-bearing, tokenized cash equivalents and the potential for more fluid movement among digital instruments. The firm’s message is that always-on markets may be better served by always-on funds and infrastructure, with interoperability acting as the connective tissue.
While specific performance outcomes are not implied, the company’s commentary underscores a forecast that tokenized money market funds and stablecoins could play a larger role in institutional crypto activity. The emphasis on continuous accrual mechanics, onchain workflows, and the integration of trading, lending, and collateral functions forms the basis of Franklin Templeton’s market view for the coming year.
