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Binance and Franklin Templeton Join Forces to Expand Tokenized Securities

Highlights:

  • Binance and Franklin Templeton have entered into a strategic partnership for tokenized asset products.
  • The goal of the initiative is to merge blockchain technology and traditional finance.
  • The new tokenized products will be launching later this year, providing better access and efficiency.

Binance, the largest crypto exchange, and Franklin Templeton, the US crypto exchange-traded fund (ETF) provider, have entered a new partnership to promote tokenized securities and digital finance. The partnership complements the rising global need for investment products that are accessible and blockchain-enabled. The companies pursue combining decentralized technology and traditional financial instruments, both in the retail and institutional sectors.

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Franklin Templeton comes with $1.6 trillion of assets under its management. Binance, on the other side, handles more than $22 billion in daily crypto transactions. Together, they are planning to make tokenized offerings that provide efficient, transparent investment experiences. The joint effort is also on building a global trading infrastructure. This will support regulatory-compliant tokenized assets to improve settlement and the construction of portfolios for investors.

Binance and Franklin Templeton Target Tokenized Securities Growth

The collaboration between Binance and Franklin Templeton is focused on turning blockchain-based finance into a reality for mainstream investors. In 2021, Franklin Templeton already became a pioneer in tokenization, launching the BENJI money market fund. In addition, BENJI is currently supported on Ethereum, Stellar, and Solana networks.

Sandy Kaul, EVP, Franklin Templeton, said:

“We do not view blockchain as a threat to existing systems, but an opportunity to reinvent them. This partnership could bring the firm’s Benji Technology Platform to new audiences on a grand scale.”

Meanwhile, Binance’s institutional division witnesses huge interest in digital asset strategies around the world. Catherine Chen, Binance’s Head of VIP & Institutional, explained, “This collaboration furthers our commitment to bridging crypto with traditional markets.”

While specific products and launch dates are not yet revealed, Binance and Franklin Templeton have confirmed that additional details will be available by the end of the year. The firms emphasize that any rollout will comply with jurisdictional rules.

Digital Asset Infrastructure Expands with Institutional Backing

Franklin Templeton already made history with the introduction of a spot Bitcoin ETF (EZBC) in early 2024. This positioned it in the same league as major players such as Grayscale and BlackRock. With this Binance partnership, the firm now broadens its crypto footprint even more.

Roger Bayston, EVP and Head of Digital Assets at Franklin Templeton, stated:

“Investors are asking about digital assets to stay ahead of the curve. Our mission is to turn tokenization from idea to implementation at an institutional scale.”

Furthermore, the announcement comes as part of wider developments in the sector. Nasdaq recently filed a rule change proposal with the SEC, with the intention of listing tokenized securities on the platform. In Europe, Kraken launched a tokenized asset trading venue for xStocks for European investors.

Binance keeps scaling its institutional and retail offerings. It has recently eliminated trading fees on certain staking assets via its American affiliate, Binance.US, further promoting investment in blockchain finance. In addition, this collaboration comes when U.S. lawmakers are debating a comprehensive market structure bill. The bill is intended to set clear rules for trading digital assets and securities on blockchain networks. It may also define how decentralized finance fits into the regulated ecosystem.

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