Wall Street Giant Franklin Templeton Plunges Deeper into Crypto with New Division and Major Deal

Franklin Templeton has finalized its acquisition of 250 Digital, a crypto investment firm that originated as a spin-out from CoinFund in January 2026. This strategic acquisition culminated in the launch of a new institutional business line named Franklin Crypto, marking a significant and tangible step by a major legacy asset manager to establish a dedicated, internal cryptocurrency operation. The deal, which was initially announced in April, underscores Franklin Templeton's long-term commitment to the digital asset space.

250 Digital was established at the beginning of 2026 as an independent entity, having been carved out of CoinFund Management. It brought with it a specialized team renowned for its expertise in liquid crypto strategies and institutional-grade portfolio construction. Christopher Perkins, who previously led 250 Digital, will now assume leadership of the newly formed Franklin Crypto division. Seth Ginns, who served as 250 Digital’s Chief Investment Officer, will retain this title within the new unit. Both Perkins and Ginns have extensive backgrounds, having spent several years at CoinFund prior to the spin-out, and possess deep connections within the institutional digital asset world.

The newly established Franklin Crypto unit is specifically designed to cater to prominent institutional clients, including pensions, sovereign wealth funds, and large asset allocators. Its primary objective is to provide these clients with exposure to digital assets through robust and regulated structures. The unit's investment strategy is comprehensive, encompassing liquid token markets, venture capital exposure within the blockchain ecosystem, and structured products that are intrinsically linked to blockchain infrastructure.

A particularly noteworthy aspect of this transaction is the innovative method of payment. Franklin Templeton utilized BENJI tokens, which represent the on-chain equivalent of its Franklin OnChain U.S. Government Money Fund, as part of the acquisition consideration. This makes the acquisition one of the pioneering major mergers and acquisitions (M&A) transactions within the financial services sector to be settled using tokenized fund shares, rather than conventional cash or securities. Franklin Templeton has dedicated years to developing its tokenization infrastructure, and the deployment of BENJI tokens as M&A currency signals that the firm now regards its tokenization stack as a fully operational commercial tool, rather than merely a proof of concept.

This acquisition aligns with Franklin Templeton CEO Jenny Johnson's outspoken perspective on the transformative potential of blockchain technology. Johnson has consistently articulated her belief that blockchains will exert pressure on Wall Street's traditional fee structures, in addition to disrupting its technological landscape. This forward-looking stance is reflected in the firm's recent strategic initiatives, which include filing for a Bitcoin ETF years before institutional demand fully materialized, launching ETFs that re-invest stock dividends into Bitcoin, and now, the acquisition of a crypto-native team to operate an institutional-scale digital asset division.

The integration of 250 Digital stands out as Franklin Templeton's most structurally significant move in the crypto domain to date. Instead of merely offering crypto exposure through an ETF wrapper or a fund sleeve, the firm is constructing a dedicated division complete with its own leadership, distinct investment philosophy, and a clear mandate to directly engage and serve the institutional market. With over $1.5 trillion in assets under management, Franklin Templeton's resolute commitment to a specialized crypto unit sends a powerful message to the broader asset management industry. It unequivocally demonstrates that the firm is not treating digital assets as a peripheral product but is instead dedicating substantial staffing, strategic acquisitions, and capital deployment, indicating its firm belief that crypto is an enduring and integral component of institutional portfolios.