Franklin Templeton to Launch 'Franklin Crypto' After New Acquisition

Franklin Templeton is launching a new institutional-grade cryptocurrency investment unit, Franklin Crypto, through the acquisition of 250 Digital. This move will expand the firm's active strategies in the digital asset space and align with growing institutional interest in crypto. The acquisition is expected to close in the second quarter of 2026.

The new unit will combine 250 Digital's liquid crypto strategies with Franklin Templeton's existing digital assets team. This consolidation is intended to serve pension funds, sovereign wealth funds, and other large institutional investors with more sophisticated investment options.

Franklin Crypto will be led by 250 Digital's co-founders, Christopher Perkins and Seth Ginns. Perkins will serve as head of the unit, while Ginns will be chief investment officer.

What Drives Franklin Templeton's Move Into Institutional Crypto?

Franklin Templeton's acquisition of 250 Digital reflects a strategic push to expand its institutional crypto offerings. The move is part of a broader trend among traditional financial institutions entering the crypto space to meet demand for diversified investment options. Franklin Templeton aims to leverage 250 Digital's expertise in liquid strategies to better serve institutional clients.

The acquisition also underscores Franklin Templeton's commitment to blockchain and tokenized assets. The firm plans to use BENJI tokens, tied to its on-chain U.S. Government Money Fund, as part of the acquisition consideration. This signals a growing acceptance of tokenized assets in M&A transactions.

How Will the New Unit Operate?

Franklin Crypto is expected to offer a range of strategies, including liquid token exposure, venture allocations, and structured products. These strategies will complement Franklin Templeton's existing digital asset offerings, such as its spot Bitcoin ETF and tokenized money market funds.

The firm has also partnered with Ondo Finance to tokenize ETFs, enabling 24/7 trading via crypto wallets. This expansion into tokenized assets supports Franklin Templeton's broader vision of bridging traditional and digital finance.

The new unit will focus on portfolio construction for institutional capital and may explore opportunities in blockchain infrastructure. Sandy Kaul, Franklin Templeton's head of innovation, emphasized the current market environment as an ideal time for structural buildout and talent acquisition in the crypto space.