$1.6 trillion Franklin Templeton taps VeChain to expand distribution of its tokenized treasury fund

Global asset management giant Franklin Templeton, which manages over $1.6 trillion in assets, is bringing its tokenized treasury fund to VeChain, according to a Thursday announcement from VeChain.

The fund, also known as the Franklin OnChain U.S. Government Money Fund (FOBXX), is currently the second-largest tokenized treasury fund globally, with more than $780 million in total assets, according to data from RWA.xyz.

This marks a major expansion of Franklin’s multi-chain distribution strategy, following earlier deployments of BENJI on other blockchain platforms, like Ethereum and Solana.

Through the partnership, Franklin gains access to VeChain’s low-cost, energy-efficient layer 1, enabling faster settlement, high-frequency transaction capabilities, and integration within a blockchain ecosystem designed for real-world adoption, the team stated.

The deal is part of an increasing institutional push for VeChain. Alongside Franklin Templeton, BitGo has joined as a regulated custodian, while Keyrock adds trading and liquidity infrastructure to the network.

“Franklin Templeton, BitGo, and Keyrock are some of the best names in their respective fields. Bringing them together on VeChain offers institutional investors an unrivaled value proposition that is overlaid with a long-term, sustainable mindset,” said Sunny Lu, the founder and CEO of VeChain.

Juan David Mendieta, CSO of Keyrock, said in a statement that Keyrock is committed to supporting VeChain’s long-term growth through validator participation, liquidity provision, and infrastructure support.

“VeChain has consistently demonstrated the potential of blockchain technology through real-world utility. From supply chain tracking and carbon management to food safety and sustainability reporting,” Mendieta stated.

“We look forward to deepening our involvement across the ecosystem by enhancing market liquidity on CEXs and DEXs and by contributing infrastructure support to help power VeChain’s future milestones,” he added.

“Institutional adoption depends on secure, scalable infrastructure,” commented Chen Fang, BitGo’s Chief Revenue Officer. “BitGo is proud to bring regulated custody and operational expertise to VeChain’s ecosystem, supporting the next generation of tokenized financial products alongside leaders like Franklin Templeton and Keyrock.”

Franklin recently rolled out “Intraday Yield” on BENJI, allowing investors to gain yield based on their holdings. The feature leverages VeChain’s low fees and rapid settlement capabilities.