Franklin Templeton Finalizes Acquisition of 250 Digital to Expand Crypto Division

Franklin Templeton has officially completed its acquisition of crypto investment firm 250 Digital, marking a significant expansion of its presence in the digital asset space. The deal effectively establishes a new standalone division, known as Franklin Crypto, which will focus on actively managed cryptocurrency strategies tailored for institutional investors such as pension funds, sovereign wealth funds, and large-scale asset allocators.

This acquisition, originally disclosed in April 2026, brings the entire 250 Digital investment team under Franklin Templeton’s umbrella, along with its existing liquid crypto trading strategies that were previously managed during its time under CoinFund. According to the company, capital will now be deployed into these strategies through the newly created unit.

Leadership Structure for the New Franklin Crypto Division

As part of the integration, leadership from 250 Digital will take central roles within the new division. Christopher Perkins, co-founder of 250 Digital, has been appointed head of Franklin Crypto, while Seth Ginns, formerly the firm’s chief investment officer, will retain his CIO position within the new structure.

Both executives previously worked at CoinFund before the liquid strategies division was spun out into 250 Digital in January 2026, bringing deep experience in crypto-native investment management.

In addition, Tony Pecore, who already held a senior role within Franklin Templeton’s digital assets division, will serve as co-manager of the unit. Overall oversight of Franklin Crypto will sit under Sandy Kaul, who leads innovation initiatives at Franklin Templeton.

Strengthening Franklin Templeton’s Digital Asset Capabilities

CEO Jenny Johnson stated that the acquisition addresses a key gap in the firm’s existing digital asset strategy. She emphasized that combining Franklin Templeton’s institutional reach with 250 Digital’s specialized expertise creates a stronger, more competitive platform in the crypto investment space.

According to Johnson, the integration places Franklin Templeton among a select group of global asset managers that operate a dedicated, institutional-grade crypto investment team focused on active portfolio management.

From Tokenization to Active Crypto Portfolio Management

Franklin Templeton currently manages approximately $1.78 trillion in assets across more than 35 countries. While the firm has been active in digital asset innovation since 2018, much of its earlier focus centered on tokenization and passive investment products rather than active trading strategies.

Over the past year, the company has accelerated its digital expansion. In February, Franklin Templeton partnered with Binance to enable institutional clients to use tokenized money market fund shares as collateral for trading activities. Shortly afterward, in March, it collaborated with Ondo Finance to bring tokenized ETFs onto blockchain networks.

However, the acquisition of 250 Digital represents a major strategic shift, adding a fully active crypto trading capability to its portfolio rather than limiting its involvement to passive or tokenized structures.

Rapid Growth of Tokenized Assets and On-Chain Expansion

Recent data from RWA.xyz highlights the rapid growth of Franklin Templeton’s tokenized asset ecosystem. The firm’s on-chain holdings increased significantly from approximately $768 million in June 2025 to more than $2.5 billion within a year.

At the same time, the broader market for real-world asset tokenization (RWA) expanded sharply, rising from around $11.8 billion to $32.2 billion over the same period. This reflects growing institutional interest in blockchain-based financial instruments.

Tokenized Fund Shares Used in Acquisition Settlement

One notable aspect of the deal is the use of BENJI tokens during the acquisition process. These tokens represent shares in the Franklin OnChain U.S. Government Money Fund, a regulated money market product recorded on a public blockchain.

This structure makes the transaction particularly significant, as it is among the first major financial acquisitions partially settled using tokenized fund shares rather than relying exclusively on cash or traditional securities. It signals a growing acceptance of blockchain-based instruments in high-value institutional transactions.

A Shift Toward Active Institutional Crypto Strategies

This acquisition highlights a broader evolution in how traditional asset managers are approaching digital assets. Franklin Templeton is no longer limiting its strategy to tokenization or passive exposure; instead, it is actively building infrastructure for institutional-grade crypto trading and portfolio management.

The move also signals increasing convergence between traditional finance and crypto-native investment firms, where expertise in liquid digital markets is becoming as important as blockchain infrastructure development. More importantly, the use of tokenized fund shares in the transaction itself suggests that blockchain-based settlement mechanisms are gradually moving from experimental use cases into real-world financial operations.

From a market perspective, Franklin Templeton’s expansion may set a precedent for other global asset managers, particularly as institutional demand for active crypto strategies continues to grow alongside the expansion of tokenized real-world assets.