VeChain Helps Franklin Templeton Compete With BlackRock in the Tokenized Fund Race

• Franklin introduces its BENJI platform onto VeChain’s blockchain, offering enterprises a new stablecoin option and efficient payment infrastructure.
• The collaboration includes support from BitGo for custody and Keyrock for derivatives, while a new “Intraday Yield” feature allows BENJI users to earn real-time yield.

Layer-1 blockchain network VeChain has joined hands with Franklin Templeton, a $1.5 trillion asset manager, in order to integrate the BENJI platform for enterprise payments. The move expands Franklin Templeton’s platform footprint while offering VeChain-based businesses an additional stablecoin alternative.

VeChain To Help Franlink’s BENJI Platform Into Tokenized Funds

Franklin Templeton’s BENJI platform enables tokenized access to its $780 million Franklin OnChain U.S. Government Money Fund (FOBXX). The fund holds cash, U.S. government securities, and collateralized repurchase agreements. Each BENJI token represents one share of the fund, and aims to maintain $1 value.

The FOBXX fund currently has $780 million in assets under management, making it the second-largest tokenized treasury fund worldwide, as per data from RWA.xyz. Vechian also noted that the platform’s dual-token structure facilitates predictable and low-cost transactions, making it well-suited for money-market funds such as FOBXX.

As part of this partnership, crypto infrastructure provider Bitgo will serve as a custody provider for VeChain. On the other hand, crypto investment firm Keyrock will bring along derivatives capabilities. The partnership enhances Franklin Templeton’s distribution strategy while offering enterprises and institutional investors using VeChain a new way to incorporate tokenized money market funds into their payment and cash management systems. Speaking on the development, Sunny Lu, the founder and CEO of VeChain. said:

“Franklin Templeton, BitGo, and Keyrock are some of the best names in their respective fields. Bringing them together on VeChain offers institutional investors an unrivaled value proposition that is overlaid with a long-term, sustainable mindset”.

Franklin Templeton’s FOBXX fund faces competition from BlackRock’s BUIDL, with a market capitalization of $2.4 billion, and Ondo’s Short-Term US Government Bond Fund, valued at $709 million. Among the three, FOBXX currently has the largest number of holders.

In another development, Franklin Templeton also introduced the “Intraday Yield” feature on its BENJI platform, enabling investors to earn yield in real time based on their holdings. The offering takes advantage of VeChain’s low transaction costs and fast settlement infrastructure.

Will VET Price Rally Continue?

Amid the broader crypto market rally, the VET price surged all the way to $0.030 last week. However, it faced strong rejection and dropped 20% since then to currently trade at $0.24, which is a crucial support. If the VET price bounces back from here, it could surge to $0.032 and $0.048 on the upside.

Additionally, VeChain has recently tapped into Revolut’s 60 million user base by joining its popular Crypto Earn and Learn Program, as reported by CNF.