tl;dr
Franklin Templeton Digital Assets is launching a patent-pending "intraday yield" feature on its Benji platform that tracks tokenized securities holdings by the second, allowing investors to earn yield on assets held for part of a day. Yield is calculated and paid daily, including non-trading days, i...
Franklin Templeton Digital Assets is set to revolutionize yield generation with its Benji platform’s new patent-pending "intraday yield" feature. This innovation allows investors to earn yield on tokenized securities held even for partial days, with earnings calculated and paid daily, including on non-trading days. By tracking holdings down to the second, it offers a significant improvement over traditional day-end yield calculations, enhancing income opportunities for investors.
This intraday yield taps into the composability of blockchain technology, potentially establishing a new industry standard for yield calculation and distribution in tokenized assets. Tokenization—the process of representing real-world assets like equities, bonds, and real estate on-chain—is increasingly gaining traction, highlighted by Franklin Templeton's 2021 launch of the first U.S.-registered mutual fund on-chain, the Franklin OnChain U.S. Government Money Fund (FOBXX).
The yield feature initially launches on the Stellar network but aims to expand across multiple blockchains, benefiting leveraged traders who can now earn income on BENJI tokens, which function similarly to stablecoins pegged to the dollar. With $775 million in BENJI tokens issued across eight networks—including Ethereum, Avalanche, and Solana—this rollout underscores the growing integration between traditional finance and crypto ecosystems.
In addition to intraday yield, the Benji platform supports wallet-to-wallet token transfers and enables investors to purchase or redeem tokenized securities using stablecoins. These capabilities position Benji as a potential white-label solution for institutional asset managers seeking to enter the burgeoning tokenized asset market.
Despite regulatory challenges, Franklin Templeton’s secured permissions facilitate smoother adoption and serve as a pathway for other institutions pursuing asset tokenization amidst evolving crypto regulations. Industry forecasts, including from Standard Chartered, project tokenized assets to soar to $30 trillion by 2030, emphasizing the vital role regulatory clarity and innovative platforms like Benji will play in shaping the future of finance.