What to Know:

• Franklin Templeton and Binance will jointly develop blockchain-based investment products.
• This partnership seeks to merge tokenization technology with global access to the crypto market.
• Specific product launches are scheduled for later this year.

Binance and Franklin Templeton are collaborating on new digital asset products aiming to bridge traditional finance and the crypto universe.

The two entities will combine Franklin Templeton’s expertise in tokenizing securities with Binance’s robust trading infrastructure and diverse investor base, as stated in a recent announcement on Tuesday. A representative from Binance clarified that their tokenization efforts are not directed at the U.S. market.

The shared goal of this partnership is to craft products that provide efficient settlement, transparent pricing, and competitive yields accessible to a broad range of investors.

Franklin Templeton, managing a noteworthy $1.6 trillion in assets, has been working on blockchain-oriented initiatives like its Benji platform for tokenized funds. Notably, last year, it announced that its OnChain U.S. Government Money Market Fund could be traded on Coinbase’s Base blockchain.

“We see blockchain not as a threat to legacy systems, but as an opportunity to reimagine them,” said Sandy Kaul, emphasizing the potential acceleration of institutional-grade tokenized assets through their collaboration with Binance.

Binance, with over 280 million users, views this partnership as part of its strategy to connect traditional capital markets with crypto investors, with Catherine Chen stating:

“Our strategic collaboration with Franklin Templeton furthers our commitment to bridge crypto with traditional markets and open up greater possibilities.”

Both companies have indicated specific products are expected to be launched later this year.