Franklin Templeton Integrates VeChain into BENJI to Outpace BlackRock in Tokenized Fund Market

Franklin Templeton has expanded its tokenized fund offerings by integrating VeChain’s blockchain into its BENJI platform, aiming to compete with rivals like BlackRock in the emerging tokenized fund market. The move allows institutional clients to access tokenized shares of the firm’s $780 million OnChain U.S. Government Money Fund (FOBXX) via VeChain, joining seven other blockchains including Ethereum and Stellar. The partnership, supported by custodian BitGo and derivatives provider Keyrock, underscores Franklin Templeton’s strategy to leverage blockchain for corporate payments and treasury functions [1].

The initiative positions FOBXX as a key player in the tokenized government fund sector, where it currently leads with 690 holders—significantly outpacing BlackRock’s BUIDL fund, which has fewer than 100 holders despite a $2.4 billion market cap. Franklin Templeton’s FOBXX, which tokenizes short-term U.S. government securities, offers stable-value tokens redeemable at $1 per share. The addition of VeChain aligns with the firm’s broader multi-chain approach, seeking to diversify distribution channels and reduce reliance on any single blockchain [1].

VeChain’s inclusion, however, comes amid low on-chain activity. The platform’s total value locked (TVL) for BENJI stands at $1.61 million, with decentralized exchange volume on VeChain totaling just $36,221 over seven days. Franklin Templeton has prioritized long-term operational benefits over short-term metrics, citing VeChain’s low, fixed transaction costs as a fit for institutional-grade financial products. The firm’s strategy reflects a focus on scalability and enterprise adoption, even as competitors like BlackRock and Ondo also expand their tokenized fund offerings [1].

The collaboration highlights VeChain’s push into institutional finance, leveraging its enterprise-grade smart contract infrastructure and regulatory compliance tools. VeChain CEO Sunny Lu emphasized the partnership’s potential to provide a “long-term, sustainable mindset” for institutional investors, combining technical innovation with compliance [1]. Meanwhile, BitGo’s custody services and Keyrock’s derivatives solutions aim to enhance BENJI’s utility for institutional clients, addressing concerns around security and scalability.

The move coincides with evolving regulatory clarity in the U.S., which has spurred interest in tokenized assets. Analysts note that success for Franklin Templeton’s tokenized funds will depend on demonstrating cost efficiency, scalability, and alignment with regulatory frameworks. While VeChain’s native token (VET) remains volatile, the partnership is seen as a catalyst for institutional adoption, particularly for enterprises seeking faster settlement times and reduced counterparty risk in traditional financial instruments [1].

Franklin Templeton’s strategy mirrors broader industry trends toward tokenizing traditional assets, with competitors like BlackRock and Ondo also exploring blockchain-based fund structures. The firm’s existing expertise in asset management, combined with VeChain’s infrastructure and BitGo’s security solutions, creates a competitive edge in a market still defining its standards. However, the low TVL and limited on-chain activity on VeChain suggest the initiative is in its early stages, requiring sustained investment to gain traction against larger rivals [1].

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[1] [Franklin Templeton brings BENJI to VeChain for corporate payments](https://en.cryptonomist.ch/2025/07/25/franklin-templeton-brings-benji-to-vechain-revolution-for-corporate-payments/)

[2] [VeChain eyes 33% surge after strategic partnership](https://www.fxstreet.com/cryptocurrencies/news/vechain-eyes-33-surge-after-unveiling-strategic-partnership-with-franklin-templeton-bitgo-and-keyrock-202507241651)