Blockchain Meets Wall Street as Binance and Franklin Templeton Build Bridge to Tokenized Future

Binance, the world’s largest cryptocurrency exchange by trading volume, has entered a strategic partnership with Franklin Templeton, a global asset manager overseeing $1.6 trillion in assets, to advance the tokenization of securities. The collaboration aims to develop digital asset products that bridge traditional finance and crypto markets, leveraging Binance’s global trading infrastructure and Franklin Templeton’s expertise in tokenizing financial instruments. A Binance representative confirmed that the tokenization initiatives are not tied to the U.S. regulatory environment.

Franklin Templeton has been actively involved in tokenization for some time, with its Benji platform enabling the creation of tokenized funds. The firm also launched the OnChain U.S. Government Money Market Fund last year, which operates on Coinbase's Base blockchain. Roger Bayston, Franklin Templeton’s head of digital assets, emphasized the goal of transitioning tokenization from theory to practice, enabling greater efficiencies in settlement, collateral management, and portfolio construction.

The partnership is expected to accelerate the development of institutional-grade tokenized assets, according to Sandy Kaul, head of innovation at Franklin Templeton. She noted that blockchain technology presents an opportunity to reimagine traditional financial systems rather than replace them. By collaborating with Binance, Franklin Templeton aims to broaden access to tokenized products and introduce solutions that meet the requirements of global capital markets.

Binance, which serves over 280 million users and handles approximately $22 billion in daily trading volume, described the alliance as a step toward integrating traditional capital markets with crypto. Catherine Chen, head of VIP and institutional clients at Binance, stated that the partnership supports the company’s goal to “open up greater possibilities” for investors by bridging the gap between traditional and decentralized finance. Binance expects to launch specific tokenization products later this year.

The collaboration aligns with broader trends in the financial sector, including recent developments by Nasdaq, which has invested in tokenization offerings and filed proposals to list tokenized stocks directly on its platform. Meanwhile, Binance.US has introduced zero trading fees on select pairs for several major blockchains, reflecting ongoing efforts to attract institutional and retail investors to tokenized markets.