Most institutions treat crypto like a side show. They launch an ETF and collect fees, but then they simply call it a day.
Franklin Templeton is doing something different. Today’s Q1 2026 earnings report shows that the $1.68 trillion asset manager is no longer just selling Bitcoin to retail.
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They are rebuilding the backend of the global treasury market on public blockchains.
The earnings signal: digital assets hit $1.8 billion
The numbers from the BEN report are impressive. Digital Assets AUM has reached $1.8 billion, and this includes $0.8 billion in crypto ETFs.
The real story is the $0.9 billion in tokenized funds like FOBXX and the new institutional DIGXX. You think these are just tickers on a screen?
They are SEC-registered money market funds where the blockchain is the official system of record. Imagine reading this five years ago.
Franklin Templeton is proving that on-chain finance is a viable cost-saving measure for the back office.
By using the Benji platform, they are cutting out intermediaries and enabling 24/7 settlement. This is likely not about hype, but it’s certainly about margins.
Collateral mobility?
Why does an institutional money market fund on Avalanche or Polygon matter? If the 3.6% yield isn’t tempting enough? It’s about what you can do with the token.
In the traditional world, a treasury bond is dead capital, and it sits in a custodial account. To use it as collateral, you need complex legal agreements.
You also need days of settlement time. In the Franklin model, the tokenized share is live capital.
It can be moved peer-to-peer or used as instant collateral in permissioned DeFi protocols.
We are seeing the birth of programmable cash that actually has the backing of the US government.
The battle for the treasury layer
Franklin Templeton isn’t alone. BlackRock’s BUIDL fund is the primary competitor, but while BlackRock focuses on high-net-worth whales, Franklin is building an ecosystem for the middle market of institutions.
The strategy is obvious. They want to become the base layer of the on-chain economy.
If every stablecoin issuer uses a Franklin-issued token as their reserve, Franklin becomes the central bank of the blockchain, not just an asset manager anymore. They are an infrastructure provider.
The integration trap
There is a catch. This move toward issuer-sponsored tokenization creates a walled garden.
As TradFi giants move on-chain, they bring their compliance requirements with them.
The original dream of DeFi was permissionless, but the Franklin model is permissioned. You can hold the token only if you pass the KYC check, but this creates a split in the market.
One side is the clean institutional liquidity, and the other is the wild crypto-native liquidity. The gap between them is growing. Franklin Templeton is the one building the bridge on their own terms.
The pieces are moving
Today’s earnings call wasn’t just about EPS beats. It was a progress report on the migration of the financial system.
We are moving away from crypto protocols vs. banks. We are moving toward a world where the bank is the protocol.
The question isn’t whether tokenization will happen, because it happens right now. But who will control the ledger?
If Franklin Templeton continues this pace, they won’t just be managing assets.
They will be defining the rules of the new treasury market. The apex predator of the tokenization sector, first of its kind.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: January 31, 2026 • 🕓 Last updated: January 31, 2026
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