# From Stellar to Canton: How Franklin Templeton Embraced Tokenization
đ„ Key Takeaways
- Franklin Templeton, a global asset management giant, has adopted blockchain tokenization to enhance efficiency and transparency.
- The firm transitioned from Stellar to the Canton Network, leveraging its privacy and compliance features.
- Tokenization enables fractional ownership, faster settlements, and reduced operational costs.
- Roger Bayston highlights the importance of regulatory alignment in institutional blockchain adoption.
- This move signals growing institutional confidence in blockchain-based financial infrastructure.
## The Evolution of Franklin Templetonâs Blockchain Strategy
Franklin Templeton, one of the worldâs largest asset managers with over $1.5 trillion in assets under management, has been an early adopter of blockchain technology. In a recent discussion, Roger Bayston, Head of Digital Assets at Franklin Templeton, detailed the firmâs journey from experimenting with Stellar to adopting the Canton Network for tokenized assets.
Initially, Franklin Templeton explored Stellar for its speed and low-cost transactions, launching a money market fund (MMF) tokenized on the network. However, as the firm scaled its digital asset operations, it sought a more institutionally compliant blockchain solutionâleading to Canton.
## Why Canton? Privacy, Compliance, and Interoperability
The Canton Network, a privacy-focused blockchain designed for institutional finance, offered Franklin Templeton key advantages:
– Regulatory Compliance â Canton ensures transactions remain private while allowing selective disclosure to regulators.
– Interoperability â Institutions can transact across different blockchain applications without exposing sensitive data.
– Settlement Efficiency â Smart contracts enable near-instant settlements, reducing counterparty risk.
Bayston emphasized that tokenization isnât just about blockchainâitâs about reimagining financial workflows. By moving to Canton, Franklin Templeton can offer fractionalized ownership of traditionally illiquid assets while maintaining strict compliance.
## The Future of Tokenized Assets
Franklin Templetonâs shift to Canton reflects a broader trend: traditional finance is embracing tokenization. Asset managers, banks, and even governments are recognizing the benefits of on-chain securities, including:
– Lower operational costs (automated compliance, reduced reconciliation)
– Enhanced liquidity (24/7 markets, fractional ownership)
– Greater transparency (real-time auditability)
As Bayston noted, “The infrastructure is now mature enough for institutions to adopt blockchain at scale.” With major players like Franklin Templeton leading the charge, tokenization is poised to reshape global finance.
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