Funds Europe Writes on Tokenisation
Funds Europe interviews Franklin Templeton's Robert Crossley in, "Tokenisation Will Redraw the Financial Map." They comment, "As tokenisation gathers momentum across global capital markets, Robert Crossley, head of thematic research at Franklin Templeton, argues that the industry is only just beginning to grasp the transformative implications of blockchain-based finance.... 'We launched the first tokenised US '40 Act money market fund back in April 2021 -- not as a proof of concept, but as a production-grade product with real-world benefits.'" The piece states, "He sees tokenised money market funds as the vanguard. Franklin's tokenised 'Benji' fund -- initially launched in the U.S. and more recently in Luxembourg -- offers investors daily interest payments (with intraday payments soon possible), full on-chain shareholder registers, and greater flexibility around collateral use. 'These funds act as a bridge between traditional finance and decentralised digital finance,' says Crossley. 'Unlike stablecoins, which offer no interest and limited transparency, tokenised money market funds are hard, regulated assets. They're what's enabling the direct exchange of value across financial systems." It adds, "Usage of the Benji fund has been wide-ranging: from corporate treasurers seeking real-time liquidity control, to crypto exchanges using the fund as high-quality collateral, to retail investors drawn by the transparency of daily interest payments. Franklin Templeton currently has approximately $750 million in AUM across its tokenised money market offerings. Yet, Crossley is quick to note that the scale of AUM is a lagging indicator. 'Whether it's $50 or $500 billion, that tells you more about adoption than about innovation. The meaningful change is the shift in infrastructure, and that's happening beneath the surface."
