Franklin Templeton, one of the world’s largest traditional asset managers with over $1.6 trillion in assets under management, has announced a major expansion into the cryptocurrency sector.
The firm is launching a dedicated cryptocurrency division called Franklin Crypto, anchored by its planned acquisition of 250 Digital, an active crypto investment management firm spun out from the prominent venture capital player CoinFund.
The move, unveiled on April 1, 2026, signals Franklin Templeton’s deepening commitment to digital assets beyond its existing Bitcoin and Ethereum ETFs. It aims to capture growing institutional demand for more sophisticated, active management strategies in the volatile crypto market.
The acquisition is expected to close in the second quarter of 2026, with financial terms remaining undisclosed. At the heart of the deal is the integration of 250 Digital’s liquid cryptocurrency strategies, which were previously managed under CoinFund.
250 Digital was spun out earlier in 2026 as CoinFund shifted its focus toward venture capital investing, retaining the liquid strategies in the new entity. Franklin Templeton will acquire the full 250 Digital investment team along with these strategies and will also commit capital to invest in them directly.
This consolidation creates a powerful new platform for active crypto investing. Unlike passive index-tracking products, Franklin Crypto will focus on generating alpha through dynamic, liquid token strategies tailored to institutional clients such as pension funds, sovereign wealth funds, and other sophisticated investors seeking exposure to the rapidly evolving digital asset class.
Leadership of the new unit will blend crypto-native expertise with Franklin Templeton’s established infrastructure. Christopher Perkins, formerly of CoinFund and currently leading 250 Digital, will head Franklin Crypto.
Seth Ginns will serve as Chief Investment Officer. They will be joined by Tony Pecore, a veteran from Franklin Templeton’s existing digital assets team. The division will report to Sandy Kaul, Head of Innovation at Franklin Templeton.
Perkins emphasized the timing of the launch: “Crypto’s institutional moment has arrived, and Franklin Crypto will help our global clients navigate this complex and rapidly evolving asset class by delivering the expertise, knowledge and digital asset products that meet their sophisticated investment needs.”
One of the most innovative aspects of the transaction is the partial payment using BENJI tokens, which represent shares in Franklin Templeton’s pioneering Franklin OnChain U.S. Government Money Fund (FOBXX).
BENJI is widely regarded as the world’s first U.S.-registered money market fund to leverage blockchain technology for share ownership and transactions, with one BENJI token equaling one share of the fund.
The fund invests primarily in U.S. government securities, cash, and fully collateralized repurchase agreements, offering stability and yield while operating on public blockchains.
By settling part of the acquisition with BENJI tokens, Franklin Templeton is conducting a real-world experiment in using tokenized real-world assets (RWAs) for mergers and acquisitions.
This approach could pave the way for greater efficiency, transparency, and speed in corporate transactions, reducing reliance on traditional banking rails and enabling near-instant settlement on-chain.
The BENJI platform, powered by Franklin Templeton’s proprietary blockchain-integrated recordkeeping system, already allows institutional investors to subscribe, transfer shares peer-to-peer, and even convert USDC stablecoins into the fund via the Benji Investments app.
Its expansion to additional blockchains, such as Avalanche and Stellar in various iterations, underscores the firm’s long-standing leadership in tokenization since launching the original on-chain fund in 2021.
This tokenized payment element highlights a broader industry trend: traditional finance (TradFi) firms are not only investing in crypto but actively integrating blockchain infrastructure into core operations.
Franklin Templeton’s move could inspire other asset managers to explore similar hybrid settlement methods, bridging fiat stability with on-chain efficiency.
Franklin Templeton’s latest initiative builds on its earlier forays into digital assets. The firm has been a pioneer among traditional managers, launching spot Bitcoin and Ethereum ETFs and developing tokenized fund products.
With Franklin Crypto, it is shifting from primarily passive offerings toward active management, which many institutions prefer for navigating crypto’s unique risks and opportunities, including market volatility, regulatory developments, and technological innovation.
The timing aligns with a maturing crypto market. Institutional inflows have accelerated following regulatory clarity in major jurisdictions, the growth of spot ETFs, and increasing interest in RWAs.
Bitcoin and Ethereum continue to dominate, but institutions are also exploring diversified liquid strategies across altcoins, DeFi protocols, and tokenized treasuries.
By combining CoinFund’s liquid strategy expertise with Franklin Templeton’s global distribution network, scale, and regulatory compliance infrastructure, Franklin Crypto positions itself as a trusted gateway for conservative institutions hesitant to engage directly with crypto-native platforms.
This deal represents another significant bridge between Wall Street and the crypto ecosystem. Traditional giants like Franklin Templeton bring credibility, capital, and client relationships that can accelerate mainstream adoption.
At the same time, incorporating talent from CoinFund injects genuine crypto expertise and active management acumen. For the broader market, the launch of Franklin Crypto could drive increased liquidity and professionalization in active crypto strategies.
It may also boost demand for tokenized assets, as more institutions gain comfort with on-chain instruments like BENJI.
Challenges remain, including regulatory scrutiny, market volatility, and the need to deliver consistent risk-adjusted returns. However, Franklin Templeton’s track record in innovation and its cautious, institutional-first approach suggest Franklin Crypto will prioritize robust risk management alongside growth.
The acquisition and division launch are expected to close in Q2 2026, after which Franklin Crypto will begin offering its strategies to clients. As the crypto market continues its institutional maturation, moves like this from established players could mark a new chapter where digital assets become a core allocation for sophisticated portfolios.
Franklin Templeton’s creation of Franklin Crypto through the 250 Digital acquisition is more than a simple expansion—it is a strategic bet on the convergence of traditional finance and blockchain technology.
By blending active crypto management with tokenized settlement innovation, the firm is reinforcing its position at the forefront of the digital asset revolution while offering institutions a regulated, professional pathway into the asset class.
Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.