MoonPay, Franklin Templeton Partner on Tokenized Funds and Stablecoins

Global digital asset payment firm MoonPay and asset manager Franklin Templeton are joining forces to bridge the gap between tokenized funds and stablecoins. Their strategic partnership aims to connect Franklin Templeton's tokenized money market fund platform, Benji, with MoonPay's institutional trading infrastructure.

This integration will enable institutional investors to seamlessly convert between stablecoins and tokenized money market funds directly on the blockchain. Both companies anticipate this will significantly improve efficiency for institutions managing funds, handling liquidity, and adjusting portfolios within an on-chain environment.

The collaboration is drawing attention for its potential to broaden the application of tokenized assets. While discussions often focus on the issuance of tokenized securities (STOs) and other tokenized assets, their real-world market trading and usability are considered more critical. This partnership demonstrates how tokenized assets and stablecoin liquidity can be interconnected within a single infrastructure.

"The utility of tokenized money market funds increases when they are connected to the liquidity of the digital asset ecosystem," said Sandy Kaul, Head of Innovation and Digital Assets at Franklin Templeton. "This collaboration will provide institutional investors with a new channel to support conversions between stablecoins and tokenized funds."

Caroline Pham, CEO of MoonPay Institutional, added, "The potential of tokenized financial products is realized when institutions can easily access the on-chain financial ecosystem. This partnership will be an opportunity to expand institutional use of digital assets."