Franklin Templeton: Has advanced the tokenization of money market funds, which can reduce operating costs by 5-15 basis points

Jinse Finance reported that executives from Franklin Templeton, SWIFT, and Ledger stated that tokenized money market funds and digitalized bank deposits are moving from the pilot phase to the early stage of financial infrastructure. In the future, the banking system may achieve 24/7 native on-chain operations. Chetan Karkhanis, Head of Digital Assets at Franklin Templeton, said the company is focusing on the tokenization of money market funds by natively issuing fund shares on-chain and supporting access via self-custody wallets or exchanges, aiming to provide round-the-clock liquidity and reduce operational costs by 5 to 15 basis points. However, institutional adoption is still at an early stage. Industry data shows that the current on-chain stablecoin market size is about $300 billions, and tokenized US Treasuries and other RWAs are about $40 billions, which is still a small proportion compared to the global wealth scale of over $200 trillions.