Franklin Templeton buys crypto unit to deepen digital push

Franklin Templeton will buy 250 Digital as the asset manager expands its digital assets business.

The firm, which manages more than US$1.7 trillion, did not disclose financial terms, and said the new cryptocurrency business will be called Franklin Crypto after the deal closes.

Christopher Perkins will lead the division, and Seth Ginns will serve as chief investment officer.

The acquisition will add to its existing cryptocurrency and blockchain investing efforts, and the transaction is expected to close in Q2 2026, subject to conditions including client approvals.

Traditional financial firms have been increasing their cryptocurrency exposure amid friendlier US policy signals under President Donald Trump, Reuters reported.

🔗 Source: Reuters

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The deal uses tokenized fund shares as payment consideration

Franklin Templeton is buying a crypto firm while trying out acquisition settlement with tokenized assets, digital tokens that represent ownership in a real-world asset, instead of only cash or stock 1.
Part of the purchase price will be paid in BENJI tokens. BENJI represents shares of Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) and is recorded using blockchain technology 2.
The transaction includes an on-chain component, meaning parts of the merger and acquisition (M&A) process will be executed and recorded on a blockchain using tokenized assets as payment 2.
The move builds on work that began in 2018 when Franklin Templeton formed its digital assets team. Franklin Templeton Digital Assets manages about $1.8 billion in global assets as of December 31, 2025 2.
It goes beyond exchange-traded funds (ETFs) by adding an actively managed crypto unit aimed at institutional clients such as pensions and sovereign-wealth funds 3.

Asset managers are preparing for possible crypto exposure in 401(k) plans

The timing comes as policy signals in the U.S. retirement market turn friendlier toward cryptocurrency under President Donald Trump.
The U.S. Department of Labor proposed a rule that would make it easier for 401(k) plans, employer-sponsored retirement accounts, to include alternative assets such as cryptocurrency. The proposal follows a 2025 executive order 4.
If finalized and adopted by 401(k) plan sponsors, the change could bring a new stream of capital into digital assets from American retirement accounts.
By launching an institutional-grade unit for active crypto strategies, Franklin Templeton aims to serve institutional investors. It may also attract retirement-plan fiduciaries, who select and oversee plan investments, if demand rises after any rule change 3.
Plan sponsors may seek managers that can handle crypto’s complexity. Franklin Crypto is designed to meet institutional demand for active digital-asset strategies 3.