Franklin Templeton and SWIFT Push Tokenization Into Mainstream Finance

For Franklin Templeton, tokenization begins with familiar financial products rather than experimental assets. Chetan Karkhanis explained that the core idea is to take traditional instruments and make them “cheaper, better and faster” by placing them directly on blockchain networks. The firm’s strategy focuses on improving existing markets rather than reinventing them.

One of its primary targets is the money market fund sector, a market worth roughly $10 trillion and largely composed of short-term U.S. Treasuries and repurchase agreements. By issuing fund shares directly on public blockchains and distributing them through self-custody wallets and exchanges, Franklin Templeton aims to provide continuous liquidity. Moving these assets on-chain could also lower operational expenses, including shareholder servicing fees that typically range between five and 15 basis points.

SWIFT Explores Tokenized Deposits and 24/7 Settlement

On the payments side, SWIFT is developing infrastructure to support tokenized deposits, which are digital representations of traditional bank balances. Devendra Verma from SWIFT’s digital assets division explained that banks would continue holding fiat deposits on their balance sheets while issuing corresponding tokens to represent those balances on-chain. According to Verma, this approach modernizes payment rails without altering the fundamental structure of the banking system.

SWIFT, which connects more than 11,500 financial institutions globally, is building a blockchain-based coordination layer designed to link central bank digital currencies, tokenized deposits, and other regulated digital assets. Although around 75% of SWIFT payments already settle within minutes, the next objective is to remove cut-off times and holiday delays, enabling continuous, around-the-clock settlement.

Tokenized Assets Remain a Small Fraction of Global Wealth

Despite growing momentum, tokenized assets still represent only a small share of global wealth. Approximately $300 billion in stablecoins and around $40 billion in tokenized Treasuries and other real-world assets currently exist on-chain. In comparison, total global wealth exceeds $200 trillion, highlighting how early the transition remains.

Regulatory clarity continues to be a key constraint. Verma stressed the importance of consistent standards governing accounting practices, compliance requirements, and balance sheet treatment before broader institutional adoption can occur. Security and governance also pose challenges. Jean-François Rochet of Ledger noted that institutional key management is as much a cultural hurdle as it is a technical one.

Although blockchain technology originally emerged from a vision of financial disintermediation, panelists suggested that the likely outcome will be a hybrid model. Decentralized access may expand, but traditional financial institutions are expected to remain central players—provided they can redefine their roles within a more programmable and digitized financial system.