Franklin Templeton introduces stablecoins and on-chain cash, accelerating institutional finance towards the digital age

On January 15, news broke that the global asset management giant Franklin Templeton has taken a key step in the digitalization of institutional finance. The company recently adjusted the operational structure of two of its institutional money market funds to officially support stablecoin reserves and on-chain cash usage based on blockchain technology, marking the beginning of systematic integration of traditional regulated investment products into digital financial infrastructure.

This move is not experimental in nature. Franklin Templeton chose to introduce blockchain settlement capabilities within its existing fund framework to respond to the real needs of institutional investors for faster settlement speeds, higher transparency, and 24/7 fund liquidity management. Compared to traditional clearing systems, on-chain settlement can significantly reduce time costs, which is especially important during market volatility.

The so-called stablecoin reserves refer to the fund’s ability to hold blockchain digital assets supported by fiat currency under compliant conditions, used for settlement and fund allocation. These reserves maintain price stability while enabling near-instantaneous fund transfers, helping to improve the liquidity efficiency of money market funds. Franklin Templeton has previously launched tokenized fund products; this expansion further enhances its internal digital asset management capabilities without changing the fund’s risk profile or investment objectives.

On-chain cash is also a core part of this adjustment. Through blockchain networks, institutional investors can bypass traditional banking hours to achieve real-time settlement across time zones. Additionally, immutable on-chain records provide a clearer data foundation for compliance, auditing, and risk control, reducing operational uncertainties for large institutions.

The improvement of the regulatory environment is an important backdrop. The GENIUS Act provides a clear framework for stablecoin reserve management, information disclosure, and compliance responsibilities, enabling institutions to adopt relevant technologies within foreseeable legal boundaries. Franklin Templeton’s fund revisions are aligned with this legislation, enhancing institutional clients’ trust in stablecoins as a component of financial infrastructure.

In the long term, this strategy demonstrates Franklin Templeton’s deep understanding of the institutional adoption cycle. Stablecoin reserves, on-chain cash, and clear regulation together form a scalable digital financial foundation. During the phase of accelerated integration between traditional finance and blockchain systems, Franklin Templeton is positioning itself as an important bridge between the two, paving the way for comprehensive digitalization of institutional finance.