The asset manager cited limitations in its prior Stellar deployment and selected Canton to support institutional needs around data confidentiality and regulatory compliance. The transition affects BENJI and reflects iterative infrastructure choices among large managers entering tokenized assets. Decrypt reported details from an interview outlining the rationale and technical considerations behind the change.
Franklin Templeton has transitioned the infrastructure supporting its tokenized money market fund from the Stellar blockchain to the Canton Network. The change follows several years of operation on Stellar during which the firm tested issuance, transfer, and redemption processes for on-chain shares. Decrypt reported that the move addresses specific operational constraints encountered in the earlier environment while preserving the core tokenization model. The firm continues to maintain its existing tokenized product lineup during the migration. This adjustment illustrates how asset managers refine distributed ledger choices as product scale increases.
Franklin Templeton manages trillions in assets across mutual funds, exchange-traded funds, and separate accounts for institutional and retail clients worldwide. The firm launched its first tokenized fund, BENJI, several years ago to explore settlement efficiencies and 24-hour transfer capabilities associated with blockchain rails. Regulators in multiple jurisdictions have begun clarifying rules for tokenized securities, prompting managers to evaluate platforms that can accommodate compliance workflows. Franklin Templeton has also participated in broader industry initiatives examining the integration of tokenized treasuries and money market instruments into existing fund operations. Its infrastructure decisions therefore carry weight as benchmarks for peer institutions considering similar deployments.
Technical Migration Details
The Canton Network employs a privacy-preserving architecture that segments transaction data among permissioned participants while still allowing atomic settlement across counterparties. Franklin Templeton determined that this design better supports requirements for confidential order information and investor holdings compared with the public ledger model used on Stellar. Migration involved reissuing tokenized shares under new smart contract parameters and updating custody and transfer agent integrations to interface with Canton validators. The firm retained its existing legal wrapper and share registration processes to avoid disrupting fund operations or investor rights. Testing focused on reconciliation speed between on-chain records and traditional books and records systems.
Canton’s design permits selective disclosure, enabling regulators or auditors to obtain necessary views without exposing all transaction details to every network participant. This capability addresses concerns raised by institutional allocators regarding data leakage in tokenized environments. Franklin Templeton worked with network operators to configure participant roles that align with transfer agent, custodian, and fund administrator responsibilities. The transition also required updates to wallet and oracle integrations previously built for Stellar. Documentation indicates the process was executed without interruption to daily subscriptions or redemptions for BENJI shareholders.
Market Implications
The migration underscores that tokenized fund infrastructure remains in an experimental phase even for early movers, with platform selection driven by evolving technical and regulatory fit rather than permanent commitment. Other managers operating tokenized treasuries or money market products continue to evaluate multiple ledger options, including those offered by public chains and permissioned networks. Franklin Templeton’s choice may influence custody providers and transfer agents to expand Canton support alongside existing Stellar and Ethereum integrations. Secondary effects could include greater standardization of privacy controls across competing platforms as institutions compare deployment experiences. The episode also highlights the importance of modular architecture that allows managers to change underlying ledgers without altering fund legal structures.
Prior tokenized product launches by BlackRock with BUIDL and by other managers using Ondo or Securitize infrastructure have generally remained on their original ledgers to date. Franklin Templeton’s decision to change platforms after initial live operations therefore represents a distinct precedent within the institutional cohort. Some competing approaches rely on public chains with additional compliance layers, while others adopt fully permissioned environments from the outset. The Canton migration suggests that privacy segmentation and interoperability with existing institutional workflows can outweigh first-mover advantages on any single chain. Market observers will monitor whether additional managers follow suit or whether the current multi-platform landscape stabilizes.
We chose Canton for its privacy features and institutional controls.
Regulatory Considerations and Next Steps
Tokenized funds remain subject to the same securities regulations as their traditional counterparts, including requirements for transfer agent registration and investor qualification checks. Canton’s permissioned model facilitates these obligations by limiting network participation to known entities that can implement required compliance programs. Franklin Templeton continues to engage with regulators in jurisdictions where BENJI is offered to confirm that the new infrastructure meets existing expectations. Future developments to watch include whether additional fund complexes announce similar platform changes and how interoperability standards evolve between Canton and other networks. Observers also note ongoing discussions around cross-border recognition of tokenized share transfers.
Infrastructure Trends
The shift illustrates a broader pattern in which asset managers treat blockchain selection as an operational parameter rather than a fixed strategic choice. As more institutions gain experience with live tokenized products, platform switches driven by privacy, throughput, or settlement finality considerations are likely to recur. Franklin Templeton’s experience supplies data points on migration costs and timelines that other firms may reference when planning their own deployments. Continued reporting from sources such as Decrypt will help track whether Canton gains additional institutional tokenized fund mandates.
Franklin Templeton’s migration from Stellar to Canton demonstrates that tokenized asset infrastructure decisions remain subject to iterative refinement as operational and regulatory requirements become clearer. The firm’s focus on privacy-preserving features and integration with existing compliance processes reflects standard institutional priorities rather than experimentation for its own sake. Market participants should expect further platform adjustments as the sector matures and additional managers publish deployment outcomes. The episode reinforces that tokenization progress depends on steady infrastructure tuning rather than single decisive leaps.
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