Franklin Templeton has seen its tokenized treasury fund, BENJI, balloon by more than 100% year-to-date in 2026, cementing the firm’s lead in a corner of crypto that’s quietly reshaping how traditional assets move on-chain. The growth signals that institutional money is warming to blockchain-based versions of government debt — a market that barely existed a few years ago.
The BENJI numbers
Franklin Templeton’s BENJI fund, short for Blockchain-Enabled Short-Term Investment Vehicle, has more than doubled in size since January. The fund invests in U.S. Treasuries and repurchase agreements, but it’s built on a public blockchain — meaning shares can be transferred peer-to-peer, settled faster and tracked in real time. That combination is proving attractive to both crypto-native treasuries and legacy finance firms looking for yield without leaving the digital asset ecosystem.
Why tokenized treasuries are taking off
Tokenized treasury funds let investors hold short-term government debt in token form, often with yields above 4% in the current rate environment. They’ve become a popular cash-management tool for crypto exchanges, DeFi protocols and even traditional corporations. Franklin Templeton isn’t the only player — BlackRock, Ondo Finance and others have launched similar products — but BENJI’s growth rate puts it ahead of the pack. The fund’s year-to-date return isn’t just about inflows; it also reflects the underlying Treasury yield, which has stayed elevated this year.
A shift in asset management
Tokenized treasuries represent one of the clearest examples of blockchain technology intersecting with mainstream finance. Instead of requiring a broker or a custodian to move Treasury exposure, investors can hold a token that settles on-chain in minutes. Franklin Templeton has been pushing this model since 2021, and 2026’s growth suggests the strategy is gaining real traction. The broader implication: if tokenized government debt keeps growing, it could eventually force other asset managers to rethink how they issue and distribute funds.
What’s next for Franklin Templeton
Franklin Templeton hasn’t announced a specific target for BENJI, but the fund’s trajectory suggests it could cross $1 billion in assets under management by the end of the year if current trends hold. The bigger question is whether other traditional managers will follow with their own blockchain-native products — or whether the SEC will update its rules to accommodate the format more broadly. For now, Franklin Templeton has a clear lead, and the pace of growth shows no signs of slowing.
