Franklin Templeton is establishing a dedicated cryptocurrency division called Franklin Crypto, built around its planned acquisition of crypto investment firm 250 Digital. The move represents a significant step by the asset management giant into institutional-focused digital asset strategies. The new division is intended to consolidate and expand the firm’s presence in the crypto investment space.
The newly formed unit will bring together 250 Digital’s liquid crypto strategies, which were previously managed by CoinFund, under a unified structure. Leadership of Franklin Crypto will draw from former CoinFund executives alongside Franklin Templeton’s existing digital assets team. The combined leadership is expected to guide a more active approach to crypto investment, targeting institutional clients.
A notable aspect of the deal involves the use of BENJI tokens as partial payment for the acquisition. These tokens are tied to Franklin Templeton’s on-chain U.S. Government Money Fund, making this an experimental application of tokenized assets in settling a merger and acquisition transaction. The move signals growing interest in using blockchain-based financial instruments beyond traditional investment products.
The transaction is expected to close in the second quarter of 2026, giving both firms time to align operations and regulatory requirements ahead of the formal merger. The use of tokenized assets as deal consideration is considered an early-stage test of how such instruments might function in corporate finance. If successful, it could influence how future acquisitions in the financial sector are structured.
By launching Franklin Crypto, Franklin Templeton aims to offer more sophisticated and actively managed crypto investment products to institutional investors. The consolidation of 250 Digital’s strategies under this new division reflects broader industry trends toward professionalizing and institutionalizing access to digital asset markets. The firm has not disclosed the full financial terms of the acquisition beyond the partial use of BENJI tokens.
Originally reported by CoinDesk.
