Franklin Templeton Expands Tokenized Treasury Access via VeChain Integration

Franklin Templeton is extending its tokenized finance initiative by integrating its BENJI platform with VeChain, a layer-1 blockchain. This collaboration allows global users to purchase and hold tokenized U.S. Treasury bills on the VeChain network, leveraging regulated custody and liquidity solutions from BitGo and Keyrock [1]. The BENJI platform provides access to the Franklin OnChain U.S. Government Money Fund (FOBXX), a regulated fund collateralized by U.S. government securities, cash, and repurchase agreements. Each BENJI token corresponds to a share in the fund, designed to maintain a stable $1 value through on-chain tracking and transfer [1].

The FOBXX fund, which manages $780 million in assets, is already available on eight blockchain networks, including Stellar, Ethereum, and Solana. Its largest market capitalization presence is on Stellar, with over $430 million in assets [1]. The fund competes with tokenized alternatives like BlackRock’s BUIDL and Ondo’s OUSG, which recently expanded to the XRP Ledger [1]. By adding VeChain to its blockchain ecosystem, Franklin Templeton aims to enhance accessibility and interoperability for institutional and retail investors seeking exposure to tokenized treasuries.

VeChain’s integration with the BENJI platform underscores its role as a hub for enterprise blockchain solutions, particularly in supply chain and asset tokenization. The partnership builds on Franklin Templeton’s broader strategy to digitize traditional financial products, offering clients a hybrid model that combines regulatory compliance with blockchain efficiency [1]. Keyrock and BitGo’s involvement highlights the growing emphasis on secure custody and liquidity infrastructure in tokenized markets, addressing prior concerns about operational risk in digital asset management.

The FOBXX fund’s expansion to VeChain follows its successful deployment on other chains, demonstrating the scalability of tokenized money market funds. Unlike conventional money market investments, the BENJI platform enables real-time settlement, transparency, and programmable features through blockchain, aligning with evolving investor demands for speed and flexibility [1]. However, the fund’s performance remains tied to U.S. government securities, which carry lower returns compared to riskier tokenized assets. This positions FOBXX as a conservative option in the tokenized finance landscape, catering to risk-averse investors.

The collaboration reflects the maturation of tokenized treasuries as a mainstream asset class. With $780 million in assets under management, FOBXX’s growth trajectory suggests growing institutional confidence in blockchain-based solutions for capital preservation. Meanwhile, competition from products like BUIDL and OUSG indicates a broader trend of asset tokenization across custodial models and underlying collateral types [1]. Franklin Templeton’s approach, however, distinguishes itself through its emphasis on regulatory alignment and cross-chain accessibility, potentially attracting a wider audience than pure-play crypto-native offerings.

Source: [1] [Franklin Templeton Brings BENJI Platform to VeChain for Tokenized Treasury Access] [https://coinmarketcap.com/community/articles/68837e9e2fb07463b9e4386f/]