Franklin Templeton partners with VeChain to expand tokenized fund eyes 33% price surge

Franklin Templeton has partnered with VeChain to expand its tokenized money market fund, BENJI, onto the blockchain platform, signaling a strategic move to compete with BlackRock and other players in the tokenized fund sector. The integration allows businesses leveraging VeChain to access tokenized shares of Franklin Templeton’s $780 million OnChain U.S. Government Money Fund (FOBXX), which invests in short-term U.S. government securities. By adding VeChain to its existing list of seven blockchains—Stellar, Ethereum, Arbitrum, Base, Avalanche, Polygon, and Aptos—Franklin Templeton aims to broaden enterprise adoption of tokenized assets, particularly for digital payment and treasury functions [1].

The partnership leverages VeChain’s low and fixed transaction costs, a feature aligned with institutional-grade financial products like money market funds. Despite VeChain’s current low total value locked (TVL) of $1.61 million and limited decentralized exchange activity ($36,221 in seven-day volume), Franklin Templeton emphasizes a long-term strategy focused on multi-chain expansion and utility growth rather than short-term metrics [1]. The BENJI platform, which tokenizes a single share of FOBXX at a stable $1 value, is already operational on VeChain, supported by institutional custodian BitGo for digital fund share security and Keyrock for derivatives trading capabilities [1].

Franklin Templeton’s FOBXX currently leads in the tokenized government fund space with 690 holders, outpacing BlackRock’s BUIDL fund—which, despite a $2.4 billion market cap, has fewer than 100 holders—and Ondo’s $709 million Short-Term U.S. Government Bond Fund, which also has under 100 users. Most of BENJI’s $780 million market cap resides on Stellar ($431.5 million), with smaller allocations on Ethereum and Avalanche. The VeChain integration is part of Franklin Templeton’s broader effort to bridge blockchain systems with traditional finance, offering institutional clients a regulated, scalable framework for digital asset management [1].

Analysts highlight the strategic significance of the partnership amid rising competition in the tokenized fund market. VeChain’s CEO Sunny Lu described the collaboration as a convergence of three industry leaders—Franklin Templeton, BitGo, and Keyrock—unifying enterprise-grade security, regulatory compliance, and long-term sustainability. The initiative supports real-time transactions for FOBXX, which holds U.S. government-backed securities, potentially enhancing liquidity and reducing settlement times for cross-border B2B transactions [1].

VeChain’s price trajectory has drawn attention from market observers. The token (VET) currently trades at $0.0253, down from a July peak of $0.0295. While technical indicators remain cautious, analysts predict a potential 33% price surge if VET breaks above key trendlines, though sustained momentum is uncertain. The Money Flow Index (MFI) for VeChain has declined to 62, reflecting lingering risk-off sentiment [2].

The move underscores a broader shift in asset management toward tokenization, with Franklin Templeton positioning itself to capture market share as institutions increasingly adopt digital solutions. VeChain’s role as a compliant, scalable blockchain infrastructure provider addresses key barriers to adoption, including regulatory clarity and operational efficiency. As Franklin Templeton and its partners refine the BENJI ecosystem, their success could shape the future of tokenized asset markets, particularly in institutional finance [1].

Sources:

[1] [Franklin Templeton Brings BENJI to VeChain Revolution 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 Unveiling Strategic Partnership With Franklin Templeton, Bitgo and Keyrock](https://www.fxstreet.com/cryptocurrencies/news/vechain-eyes-33-surge-after-unveiling-strategic-partnership-with-franklin-templeton-bitgo-and-keyrock-202507241651)