Wall Street asset management giant Franklin Templeton is establishing a dedicated cryptocurrency division, signaling a major expansion of its digital assets business through the planned acquisition of crypto investment firm 250 Digital. The new unit, called Franklin Crypto, will consolidate cryptocurrency strategies and target institutional investors seeking active digital asset exposure beyond traditional ETF products.
Franklin Templeton, a major player in traditional finance, is deepening its push into the cryptocurrency sector at a time when institutional demand for digital asset strategies continues to grow. The company currently manages approximately $1.8 billion in its existing digital asset business, and the launch of Franklin Crypto represents a strategic shift toward offering more active cryptocurrency investment strategies alongside its passive products.
The acquisition of 250 Digital will bring together the firm’s liquid crypto strategies, which were previously managed by CoinFund, under a unified structure. Christopher Perkins, a former executive at CoinFund, will lead the new Franklin Crypto division. Seth Ginns will serve as chief investment officer, working alongside Tony Pecore, Franklin Templeton’s digital assets executive. The division will report to Sandy Kaul, the firm’s head of innovation.
“Crypto’s institutional moment has arrived,” Perkins said in a statement regarding the move. The acquisition reflects a broader industry trend where large asset managers are moving beyond passive exposure products to build in-house capabilities that can meet the structured exposure demands of institutional investors.
CEO Jenny Johnson described the acquisition as an exciting addition to Franklin Templeton’s portfolio. “This strengthens our firm’s ability to deliver dedicated crypto expertise to clients globally,” Johnson said. The move positions Franklin Templeton to compete more directly with other major financial institutions entering the cryptocurrency space.
One particularly notable aspect of the transaction involves its settlement structure. Part of the acquisition consideration will be paid using BENJI tokens, which are tied to Franklin Templeton’s on-chain U.S. Government Money Fund. The fund operates on blockchain infrastructure to process transactions and record asset ownership.
This tokenized settlement approach represents an experimental step toward conducting mergers and acquisitions using blockchain-based assets. Rather than traditional payment methods, the deal demonstrates how cryptocurrency infrastructure and tokenized financial instruments could streamline settlement processes in major corporate transactions. The approach suggests a potential future where blockchain rails facilitate more direct settlement between parties in M&A activity.
The transaction is expected to close during the second quarter of 2026, subject to customary approvals and other closing conditions. Franklin Templeton did not disclose the specific financial terms of the acquisition agreement.
The establishment of Franklin Crypto reflects broader institutional momentum in the cryptocurrency sector. Large asset managers have increasingly recognized the need to develop dedicated teams and capabilities to serve clients seeking exposure to digital assets. Rather than relying solely on third-party partners or limited product offerings, these firms are investing in building comprehensive in-house expertise.
Franklin Templeton’s move also underscores how traditional finance institutions view cryptocurrency investment strategies as an essential component of modern asset management. As regulatory frameworks continue to mature and institutional participation grows, major financial firms are positioning themselves to capture this expanding market segment.
The acquisition brings together experienced cryptocurrency professionals with Franklin Templeton’s broader asset management infrastructure and institutional client base. This combination aims to deliver institutional-grade cryptocurrency investment solutions that meet the compliance and operational standards expected by large institutional investors.
The use of tokenized settlement in this transaction also signals how blockchain technology is beginning to penetrate traditional finance processes. By utilizing tokens tied to an on-chain money fund, Franklin Templeton is experimenting with more efficient settlement mechanisms that could eventually reshape how corporations conduct major financial transactions.
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