Franklin Templeton Deploys $780M BENJI Tokenized Fund on VeChain Integrates BitGo Custody and Keyrock Derivatives

Franklin Templeton, a global asset management leader, has expanded its tokenization efforts by deploying its $780 million BENJI tokenized fund on the VeChain blockchain network. The initiative, announced on July 24, integrates the BENJI platform—which tokenizes shares of the firm’s OnChain US Government Money Fund (FOBXX)—into VeChain’s infrastructure, offering institutional and enterprise clients a blockchain-based liquidity solution. The fund, which maintains a stable $1 value by investing in government securities, cash, and repurchase agreements, now joins Franklin Templeton’s multi-chain strategy to bridge traditional finance with decentralized ecosystems [1].

VeChain’s dual-token system and cost-effective infrastructure were highlighted as ideal for money market operations. BitGo will manage custody for the tokenized assets, while Keyrock will provide derivatives trading services, creating an enterprise-focused framework that unites custody, trading, and tokenization. This collaboration strengthens Franklin Templeton’s distribution strategy and positions VeChain to expand its footprint in the tokenized asset space [1]. The BENJI token represents fractional ownership in the FOBXX fund, which was among the first SEC-registered funds to use blockchain for recordkeeping since its 2021 launch.

The integration builds on Franklin Templeton’s prior deployments of BENJI across multiple blockchains, including Stellar, Ethereum, Arbitrum, Polygon, Base, Avalanche, and Aptos. Stellar remains the largest network for the platform, hosting over $430 million in assets. Across all chains, the fund has attracted 690 individual wallet addresses, the highest among peer tokenized government money funds, according to RWA.xyz data [1]. This broad adoption reflects demand for stable, regulated liquidity tools in blockchain ecosystems.

Franklin Templeton’s RWA strategy has gained momentum through initiatives like its selection by ArbitrumDAO to manage U.S. Treasury exposure via tokenized offerings. The BENJI fund was allocated 35% of the 35 million ARB treasury diversification program under ArbitrumDAO’s STEP 2 initiative. Additionally, the firm secured regulatory approval to launch its first tokenized fund for retail investors in Singapore earlier this year, underscoring its global expansion in tokenized finance [1].

VeChain’s participation adds strategic value to the partnership. The platform’s real-world asset (RWA) focus aligns with Franklin Templeton’s goal of integrating traditional financial instruments into blockchain networks. Hosting the BENJI platform provides VeChain access to a validated tokenized asset model, potentially accelerating institutional adoption. For Franklin Templeton, the move reinforces its multi-chain approach, enabling clients to leverage diverse blockchain features for liquidity management and asset tokenization [1].

The partnership exemplifies the growing convergence of blockchain and institutional finance. By tokenizing a government money fund, Franklin Templeton demonstrates how regulated products can operate within decentralized systems while maintaining stability and compliance. The collaboration with VeChain, BitGo, and Keyrock also sets a precedent for enterprise-grade frameworks that streamline custody, trading, and tokenization. As the RWA sector matures, such integrations are likely to define the next phase of institutional-grade digital assets, offering investors tools to navigate the intersection of traditional and tokenized markets [1].

Source: [1] [Franklin Templeton brings $780M BENJI tokenized fund to VeChain network] [https://invezz.com/news/2025/07/24/franklin-templeton-brings-780m-benji-tokenized-fund-to-vechain-network/]