Kraken Parent Payward Forms Partnership With Franklin Templeton on Tokenized Financial Products

Payward, the parent company of crypto exchange Kraken, is working with asset manager Franklin Templeton to develop tokenized financial products for institutional investors. The collaboration was announced on May 12, 2026. The partnership will focus on tokenized yield products, tokenized equities, custody services and actively managed onchain funds.

Kraken plans to integrate Franklin Templeton’s BENJI tokenized money market funds as collateral and cash management tools. Some of the blockchain-based offerings may be available to retail Kraken users in certain jurisdictions. The firms plan to explore actively managed tokenized investment products that could trade onchain.

Actively managed tokenized investment products could become available to institutional investors and, in some jurisdictions, retail Kraken users. Franklin Templeton has spent years building blockchain-based investment products. Payward has focused on crypto trading infrastructure through Kraken and its xStocks tokenized equities platform.

Kraken's xStocks tokenized equities platform has processed more than $30 billion in trading volume since starting up in 2025. CoinDesk reported that the move comes as large financial firms explore testing tokenized versions of conventional assets. BlackRock, Fidelity and JPMorgan have all expanded blockchain-related financial products over the past two years.

Tokenization refers to representing traditional financial assets such as stocks, bonds or money market funds on blockchain networks. Supporters argue the approach can reduce settlement times, expand market access and allow assets to move more easily between financial platforms. The collaboration joins two firms that have taken different routes into tokenized finance.

Analysts view tokenized Treasury funds as one of the fastest-growing sectors in digital assets because they offer yields tied to government securities while operating on blockchain rails. In practice, that can allow institutions to move collateral around the clock instead of waiting for banking hours or multiday settlement periods.

Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO.

“The companies said Tuesday they will develop a range of blockchain-based investment offerings, including tokenized yield products, tokenized equities and custody services tied to digital assets." — CoinDesk reported. The partnership reflects broader Wall Street interest in tokenized Treasuries and funds that can move collateral around the clock. Payward and Franklin Templeton issued the announcement as tokenized finance draws increasing participation from traditional asset managers.”