Franklin Templeton, a renowned asset management firm, has made significant strides in its decentralized finance (DeFi) implementation with the launch of its latest tokenization project, Benji, on Ethereum. This achievement marks the company’s fifth platform integration this year, following previous launches on Aptos, Avalanche, Arbitrum, and Base. Benji is now accessible on seven platforms, including Stellar and Polygon, showcasing Franklin Templeton’s commitment to embracing new technologies and expanding its presence in the DeFi space.
In a recent podcast, Sandy Kaul, the Head of Innovation Strategies at Franklin Templeton, discussed the company’s journey in developing its DeFi solution starting in 2017. Kaul highlighted that Franklin Templeton has established a robust stack for issuing and managing tokens, incorporating a wallet system that complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. The firm’s regulated wallet system securely manages keys in cold storage, facilitating agency work for users to issue regulated funds, manage subscriptions and redemptions, and track shareholders’ changes, among other functions.
The newly launched stack at Franklin Templeton enables the issuance of regulatory reports and facilitates the seamless exchange of stablecoins within its network, directing them into money market funds to generate yield. This innovation exemplifies the increasing adoption of DeFi in mainstream financial institutions, showcasing how emerging technologies can revolutionize traditional industries and enhance product offerings. Kaul described the transition as an upgrade to the company’s existing infrastructure, moving from a complex account-based system to a unified investor fund approach via the new wallet system.
Moreover, Kaul emphasized that the newly created wallet introduces an interoperable and leverageable environment for platform users, projecting a significant shift in the system that opens up investing opportunities. Franklin Templeton’s forward-thinking approach to incorporating DeFi technologies demonstrates the company’s commitment to staying at the forefront of industry innovation and providing cutting-edge solutions to meet evolving market demands. The introduction of Benji on various platforms underscores the company’s strategic expansion and readiness to adapt to the changing landscape of the financial sector.
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