Franklin Templeton has launched a dedicated crypto business unit for institutional clients, acquiring a CoinFund spinoff and appointing new leadership to run the division as the $1.7 trillion asset manager deepens its push into digital assets.
The firm announced on April 1, 2026 that it plans to acquire 250 Digital, a spinoff from crypto investment firm CoinFund, bringing over the investment team and all liquid cryptocurrency strategies previously managed under CoinFund’s umbrella. The new unit, called Franklin Crypto, will operate as a dedicated institutional arm within the broader organization.
Franklin Crypto will be led by Christopher Perkins as head and Seth Ginns as chief investment officer. Franklin Templeton veteran Tony Pecore will also join the leadership team, according to the company’s press release.
“Crypto’s institutional moment has arrived, and Franklin Crypto will help our global clients navigate this complex and rapidly evolving asset class.”
— Christopher Perkins, Head of Franklin Crypto
Franklin Templeton already managed $1.8 billion in digital assets before the launch
The move is not a cold start. Franklin Templeton Digital Assets managed approximately $1.8 billion in global assets as of December 31, 2025. The acquisition of 250 Digital and creation of Franklin Crypto formalizes and expands that existing infrastructure.
$1.8 billion
The transaction is expected to close in the second quarter of 2026. In a notable detail, Franklin Templeton disclosed that BENJI tokens will be used as payment consideration in the deal. BENJI represents one share of the Franklin OnChain U.S. Government Money Fund (FOBXX), a regulated U.S.-registered mutual fund that launched in 2021 and held $864.36 million in total net assets as of February 28, 2026.
Using a tokenized fund share as M&A consideration is a significant signal. It suggests Franklin Templeton views its own blockchain-native financial products as viable instruments for institutional transactions, not just retail investment vehicles. The firm had previously enabled peer-to-peer transfers for FOBXX, expanding the fund’s utility beyond simple buy-and-hold.
Why institutional crypto expansion matters now
Franklin Templeton’s institutional pivot comes as the total crypto market cap sits at roughly $2.45 trillion with about $113.7 billion in daily trading volume. Traditional finance firms have been steadily increasing their crypto exposure, but few have created standalone business units with dedicated leadership specifically for institutional clients.
The distinction matters. A dedicated unit signals long-term commitment rather than experimental allocation. With more than $1.7 trillion in total assets under management, Franklin Templeton brings institutional credibility that smaller crypto-native firms cannot match, while the CoinFund-originated team brings crypto-native expertise that traditional firms typically lack.
The institutional crypto space has been evolving rapidly in 2026. Developments like Ripple USD entering new markets through exchange listings and ongoing concerns about security risks highlighted by $52 million in crypto hack losses in March underscore both the growing demand for institutional-grade crypto services and the need for trusted operators in the space.
Franklin Templeton’s approach also differs from competitors in its embrace of tokenization as core infrastructure. While many traditional firms treat crypto as an asset class to offer through conventional wrappers, the BENJI token deal structure suggests Franklin Templeton sees blockchain rails as operational tools, not just investment products.
What to watch as the deal moves toward closing
The transaction remains subject to definitive agreements, client consents, and customary closing conditions. A Q2 2026 close means investors and competitors will be watching for details on Franklin Crypto’s product lineup, fee structures, and target client segments.
Key questions include how Franklin Crypto will differentiate its institutional offerings from existing crypto prime brokerage and custody solutions, and whether the unit will expand beyond liquid strategies into areas like venture or structured products. The leadership team’s CoinFund background in liquid crypto strategies suggests an initial focus on actively managed token portfolios.
As concerns about market structure and token launch mechanics continue to surface across the industry, institutional players like Franklin Crypto could help set standards for how large allocators access digital assets. The formal launch and its BENJI-denominated deal structure mark one of the clearest signals yet that traditional finance views crypto infrastructure as ready for institutional-scale deployment.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
