Franklin Templeton has teamed up with MoonPay to allow institutional investors to swap stablecoins for yields on a blockchain platform.
Franklin Templeton has announced a collaboration with MoonPay aimed at providing institutional investors the ability to efficiently swap between stablecoins and the firm's tokenized money market fund on a blockchain-based platform.
The partnership streamlines transactions for institutional investors in the digital asset space.
This new integration links Franklin Templeton's Benji Technology Platform to MoonPay Trade, enabling eligible institutions to manage their investments without leaving the blockchain environment. This functionality is particularly appealing as institutional interest grows for continuous yields on cash-equivalent assets.
Franklin Templeton's recent initiatives reflect a broader commitment to digital assets. In April, the asset management giant, which oversees $1.74 trillion in assets, announced the establishment of Franklin Crypto, a division focused on cryptocurrency investments, following the acquisition of 250 Digital, a crypto investment firm.
Sandy Kaul, who oversees innovation and digital assets at Franklin Templeton, expressed optimism about the future of liquidity in digital markets. She noted that 2026 is expected to be a pivotal year for interoperability between stablecoins and tokenized funds, facilitating their use in various financial applications.
Kaul emphasized the advantages for institutions, stating that they can now convert stablecoin holdings into tokenized funds to earn yields continuously. Unlike traditional money market funds that require investors to hold positions until the end of the trading day to receive interest, tokenized funds can allocate yields based on the exact duration of asset holdings.
According to Kaul, there has been significant demand from institutions for this seamless transition between stablecoins and tokenized money market funds while still earning yields on those assets. This partnership also marks a strategic move for MoonPay, expanding its services beyond crypto trading and payments into the realm of tokenized real-world assets, which is gaining traction among traditional financial institutions seeking to introduce regulated investment products on the blockchain.
