Table of Contents
Franklin Templeton is expanding its push into digital assets with the launch of Franklin Crypto, a new institutional-grade investment unit formed alongside its planned acquisition of 250 Digital.
The deal brings over the investment team and liquid cryptocurrency strategies previously managed under CoinFund, further consolidating Franklin Templeton’s growing digital asset platform.
Industry veterans Christopher Perkins and Seth Ginns will co-lead the new division alongside Tony Pecore. The unit will report to Sandy Kaul and focus on delivering actively managed crypto strategies for institutional clients.
Building an Institutional Crypto Platform
Franklin Templeton has been steadily expanding its digital asset footprint since entering the space in 2018. The firm now manages roughly $1.7 trillion in assets globally and was among the asset managers that launched spot bitcoin ETFs in the U.S. in 2024.
With Franklin Crypto, the firm is formalizing its efforts into a dedicated unit designed to serve pensions, sovereign wealth funds, and other large allocators seeking structured exposure to digital assets.
“This is an exciting addition for Franklin Templeton,” said Jenny Johnson. “Their investment talent and differentiated strategies strengthen our capabilities in digital assets and position us among a select group of global asset managers with a dedicated, institutional-grade crypto investment management unit.”
Perkins framed the launch as part of a broader shift in institutional sentiment toward crypto.
“Crypto’s institutional moment has arrived,” he said, adding that the goal is to deliver products that meet the increasingly sophisticated needs of global clients.
Timing the Market Cycle
The move comes amid a prolonged drawdown in crypto markets following late-2025 highs. Bitcoin has fallen sharply from its peak, and the broader digital asset market has seen significant contraction.
Rather than deterring institutional entrants, the downturn appears to be accelerating strategic positioning.
According to Kaul, market conditions helped catalyze the timing of the acquisition, creating an opportunity to attract top talent and build long-term infrastructure while valuations remain compressed.
The current cycle has also differed from prior downturns. While the 2022 crash was marked by high-profile failures across lenders and exchanges, the recent correction has been more orderly, with fewer systemic disruptions.
Bringing M&A Onchain
One of the more notable elements of the transaction is its structure.
Franklin Templeton indicated that the deal will incorporate tokenized registered securities into its settlement process, marking a step toward conducting elements of mergers and acquisitions on blockchain infrastructure.
Specifically, the firm plans to use its tokenized money market fund, Franklin OnChain U.S. Government Money Fund (FOBXX), also known as BENJI, as part of the transaction consideration.
The fund, launched in 2021, is widely regarded as the first U.S.-registered mutual fund to use blockchain technology to process transactions and record ownership.
A Broader Institutional Shift
Franklin Templeton’s expansion reflects a wider trend across traditional finance, where firms are increasingly building dedicated crypto divisions rather than treating digital assets as an experimental side strategy.
Perkins noted that institutional attitudes have shifted materially in recent years.
“Institutions of all flavors, there used to be reputational risk for them being in this space,” he said. “Now they have reputational risk for not being in the space.”
The transaction is expected to close in the second quarter of 2026, pending customary approvals and conditions.
