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As the global financial system is rapidly being reshaped around blockchain-based digital assets, major asset managers are leading technological innovations that blur the boundaries between traditional finance and decentralized finance, transforming the competitive landscape of the market.
Sandy Kaul, Executive Vice President at Franklin Templeton, shared in-depth insights on February 12 (local time) during an interview with The Paul Barron Podcast regarding the global performance of the firm’s tokenized money market fund, Benji, and the future evolution of the financial ecosystem. Kaul explained that Benji operates under various structures tailored to regulations in jurisdictions including the United States, Luxembourg, and Singapore, expressing confidence that it is poised to become the world’s largest tokenized money market fund by assets.
Regarding regulatory developments in Washington, D.C., Kaul highlighted Senator Tim Scott’s support for yield-bearing stablecoins and his efforts to negotiate with the banking sector. She projected that stablecoins offering yield are likely to be classified as securities in the future and described this as a potential turning point that could provide new opportunities for investors within regulatory guidelines. In particular, she noted that for institutional investors, tokenized assets with strong collateral utility—beyond simple holding—will serve as a key competitive advantage.
Kaul also elaborated on recent technological achievements through a partnership with Binance. A mirroring service is now operational that allows institutional investors to hold Benji products in custodial accounts while using them as credit collateral on the Binance exchange for derivatives trading. She emphasized that this structure fully meets the needs of institutions seeking to manage liquidity efficiently and generate real-time yield while utilizing regulated financial products.
The potential passage of the U.S. crypto market structure bill, known as CLARITY, is expected to serve as the final key to expanding distribution channels for financial products. Kaul indicated that once the bill is finalized, distribution methods could change dramatically, including Benji directly participating in trading pools on decentralized exchanges such as Uniswap. She added that Franklin Templeton has already built and is operating a system that updates shareholder records in real time and distributes yield around the clock throughout the year.
By 2026, digital wallets are expected to play a central role in individuals’ financial lives, alongside the widespread emergence of tokenized real-world asset products. Kaul described the current transformation as a greater opportunity than the internet revolution of the 1990s, expressing optimism that blockchain technology is fundamentally redesigning the mechanics of finance. As the convergence of traditional finance and the Web3 ecosystem accelerates, investors are increasingly focusing on digital financial infrastructure that combines tangible asset utility with regulatory resilience.
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