Payward, the parent company of crypto exchange Kraken, has partnered with global asset management giant Franklin Templeton to accelerate the development of tokenized financial products and expand institutional adoption of blockchain-based assets.
The collaboration aims to combine traditional finance infrastructure with digital asset technology as institutional interest in onchain finance continues to grow rapidly. Both companies plan to develop several tokenized investment products designed to operate directly on blockchain networks.
Under the agreement, Franklin Templeton will contribute its expertise in asset management, while Payward will provide crypto-native infrastructure including trading systems, custody services, blockchain integrations, and liquidity solutions.
The partnership will focus on multiple areas, including tokenized equities, institutional-grade digital custody, blockchain settlement systems, and yield-generating investment products for institutional investors.
A major component of the initiative involves Payward’s xStocks platform, a tokenized equities infrastructure that reportedly generated more than $30 billion in trading volume since launching in 2025. Through the collaboration, the companies aim to bring actively managed investment strategies onto blockchain rails and distribute them in tokenized form.
The firms also plan to develop tokenized yield-focused products that could eventually become available to a broader range of Kraken customers, depending on future regulatory approval. According to the companies, blockchain technology can improve transparency, programmability, operational flexibility, and accessibility for financial products.
Arjun Sethi, co-chief executive of Payward and Kraken, stated that the partnership represents a future where the divide between traditional financial assets and blockchain infrastructure gradually disappears. He added that the collaboration could create an entirely new category of digitally native financial products backed by recognized investment management structures.
As part of the agreement, Kraken is also exploring the integration of Franklin Templeton’s BENJI platform, a tokenized money market fund product designed for institutional liquidity management and capital efficiency.
The BENJI integration could strengthen Kraken’s institutional product offering as the exchange continues expanding beyond spot crypto trading. Recently, Kraken increased its presence in the derivatives sector following its acquisition of Bitnomial.
Sandy Kaul emphasized that the long-term goal is to make onchain assets more practical and functional for all market participants once they enter blockchain ecosystems.
The partnership between Payward and Franklin Templeton highlights the accelerating convergence between Wall Street and the crypto industry, as traditional financial firms increasingly embrace tokenization, blockchain settlement systems, and digital asset infrastructure.
