Payward and Franklin Templeton Launch Tokenized Yield Products

Payward, the parent company of the Kraken exchange, and global asset manager Franklin Templeton announced in a Tuesday press release that they will launch tokenized yield products and on-chain funds.

The collaboration will expand Payward’s xStocks framework and integrate Franklin Templeton’s BENJI tokenized money market funds. The initial scope includes tokenized equities, qualified custody services, yield-generating products and institutional liquidity provided through Kraken’s over-the-counter and Prime desks.

Payward introduced xStocks in 2025 and reports the framework has processed more than $30 billion in volume. Under the agreement, xStocks will be expanded to support actively managed on-chain investment strategies developed with Franklin Templeton.

Kraken plans to integrate BENJI to increase capital efficiency and utility across digital asset markets and institutional workflows. The products are intended for institutional and eligible retail customers where permitted, with a focus on transparent reporting and programmable features.

Arjun Sethi, co-CEO of Payward and Kraken, framed the collaboration as part of a broader evolution in finance, saying “Payward and Franklin Templeton are building toward a model of finance where the distinction between traditional assets and digital infrastructure no longer holds.”

Sandy Kaul, head of Digital Assets & Innovation at Franklin Templeton, noted the firms plan to expand BENJI’s utility and to explore new tokenized products for both digital-native and institutional clients.

Tokenization creates digital representations of traditional assets on blockchain networks, enabling fractional ownership, automated settlement rules and improved traceability. Franklin Templeton will provide asset management and tokenization capabilities; Payward will supply trading, custody and exchange infrastructure through Kraken.

The companies did not provide specific launch dates or name initial jurisdictions. They stated distribution will follow institutional workflows and eligible retail rules where permitted.