Franklin Templeton Expands Crypto ETF and Tokenized Fund Offerings for 2025

Franklin Templeton, a major player in asset management, is gearing up for a big year in 2025. With plans to broaden its offerings in crypto-focused ETFs and tokenized funds, the firm aims to capitalize on the growing interest in blockchain and cryptocurrency.

ETFs and Crypto Diversification in the Spotlight

Roger Bayston, Franklin Templeton’s digital assets lead, believes the coming year will center around one key theme: diversification. After launching Bitcoin and Ether ETFs earlier this year, the company is setting its sights on expanding these offerings. The recent approval of 19b-4 filings for crypto index funds by the SEC marks a turning point. These new funds are expected to combine Bitcoin, Ether, and potentially other cryptocurrencies in a single product.

Bayston notes that legal teams across the ETF space are likely to have a busy start to the year. “The utility of blockchain, whether through Bitcoin as a store of value or other composable chains, is a story that will grow in 2025,” he said. Franklin Templeton isn’t alone in this endeavor. Competitors like Hashdex are also preparing to enter this evolving market.

Exploring New Horizons: Solana, XRP, and Beyond

While the SEC has shown hesitance towards assets without regulated futures markets, like Solana and XRP, optimism persists. A shift in the SEC’s leadership could open doors for more diverse spot crypto ETFs.

David Mann, Franklin Templeton’s head of ETF product and capital markets, emphasized the importance of collaboration. Conversations between the ETF division and the digital assets team play a key role in identifying promising assets and refining product strategies. “We’re constantly evaluating crypto assets with the same rigor as traditional equities and credit markets,” Bayston added.

Tokenized Funds Gaining Momentum

Beyond ETFs, Franklin Templeton’s OnChain US Government Money Fund (FOBXX) is another key area of growth. The fund, launched in 2021, integrates blockchain technology to enable peer-to-peer transfers and now operates on Coinbase’s layer-2 blockchain. As of November 30, FOBXX held approximately $430 million in assets.

Bayston pointed out that tokenized money funds offer a compelling alternative to stablecoins, particularly as collateral in derivative transactions. Unlike stablecoins, FOBXX provides a yield-bearing option that appeals to institutional and retail investors alike.

Global Expansion for BENJI

One of Franklin Templeton’s notable tokenized products, BENJI, has been limited to the US market so far. That’s set to change in 2025. “BENJI is poised to make its mark globally as the new year begins,” Bayston shared. This move reflects the firm’s broader ambition to cater to a worldwide audience while leveraging the scalability and security of blockchain.

What Lies Ahead for Franklin Templeton?

As Franklin Templeton looks to the future, its strategy reflects a balance of innovation and pragmatism. By integrating blockchain technology into traditional finance, the firm is bridging the gap between old and new. Whether through ETFs that simplify access to cryptocurrencies or tokenized funds that redefine liquidity and collateral, the company is paving the way for wider adoption.

The question now is how quickly regulatory and market dynamics will evolve to support these initiatives. One thing is clear: Franklin Templeton is ready to adapt and lead as the financial landscape shifts.