Franklin Templeton has revealed that blockchain technology dramatically reduces fund transaction costs compared to traditional financial systems, underlining a potential shift for institutional investors toward tokenized assets.
Franklin Templeton demonstrates Stellar’s cost advantage
Sandy Kaul, Franklin Templeton’s Head of Innovation, compared six months of fund processing data using conventional transfer-agency systems and the Stellar blockchain. According to the asset manager, processing 50,000 fund transactions through legacy infrastructure came to $75,000, equivalent to $1.50 per transaction. The same volume on Stellar resulted in a total cost of just $1.13—roughly $0.0000226 per transaction.
Franklin Templeton calculated that traditional fund transaction processing cost $75,000 for 50,000 transactions, while executing them on Stellar incurred just $1.13 in total fees.
This significant cost disparity amounts to a 99.9985% reduction, suggesting substantial savings for asset managers and investors if blockchain adoption accelerates. Franklin Templeton’s BENJI product, built on Stellar, allows investors to access its regulated money market fund for as little as $20, far below the $500 usually needed to open a traditional fund account.
BENJI tokenizes shares in Franklin OnChain U.S. Government Money Fund (FOBXX), primarily investing in short-term U.S. government securities. As of October 6, 2026, the BENJI product had around $605 million in assets on Stellar, with more than $211 million in peer-to-peer share transfers recorded through March 31, 2026.
Mini dictionary: Franklin Templeton is a global asset management firm with extensive experience managing mutual funds, ETFs, and other financial products. The company has been actively exploring blockchain-based solutions for traditional finance.
| Processing Method | Total Cost for 50,000 Transactions | Cost per Transaction |
|---|---|---|
| Traditional System | $75,000 | $1.50 |
| Stellar Blockchain | $1.13 | $0.0000226 |
Institutional tokenization expands to XRP Ledger
Franklin Templeton’s tokenization initiatives have extended beyond Stellar to the XRP Ledger (XRPL). In partnership with DBS Bank and Ripple, the institution announced plans in September 2025 to tokenize shares of its Singapore-based sgBENJI money market fund on XRPL, facilitate trading with digital dollar token RLUSD, and explore collateralized lending using fund shares.
By October 24, 2026, reports indicated that Franklin Templeton’s sgBENJI holdings on XRPL reached approximately $200 million after a $150 million addition.
X Finance Bull, a cryptocurrency commentator, emphasized that these moves could create new financing options for institutions and boost demand for liquidity, with XRP serving as a bridge between tokenized assets via XRPL’s automated trading and settlement functions.
Mini dictionary: XRPL (XRP Ledger) is a decentralized public blockchain focused on fast, scalable payments and tokenized asset transfers, utilizing the XRP token as a bridge asset for international settlement.
Aviva and DTCC add to institutional developments
Institutional attention to tokenization continued as Aviva Investors, the asset management business of Aviva Group, announced the launch of a tokenized share class for its Sterling Liquidity Fund on XRPL in late October 2026. The underlying fund holds around £22 billion in assets, with over £86 million allocated to the two tokenized share classes.
In parallel, the Depository Trust & Clearing Corporation (DTCC), a leading US post-trade market infrastructure provider, began working with the Stellar Development Foundation to make eligible securities such as US Treasuries, equities, and ETFs available on the Stellar blockchain, targeting a rollout in the first half of 2027.
Mini dictionary: DTCC (Depository Trust & Clearing Corporation) is a major US financial market utility that provides clearing, settlement, and information services for a vast range of financial products and markets.
Tokenization outlook: opportunities for XRP and XLM
X Finance Bull pointed out that growing institutional adoption could expand the market for XLM and XRP, which operate as native assets of the Stellar and XRPL networks. XLM is used for transaction fees and liquidity on Stellar, while XRP supports XRPL’s fee structure and acts as a bridge for exchanging diverse tokenized assets.
He cited McKinsey’s projections that the tokenized financial asset market could reach $2 trillion by 2030 in a base-case scenario, while a more optimistic estimate reaches $4 trillion.
X Finance Bull views Franklin Templeton’s adoption of Stellar and XRPL as a signal that institutional investing may soon shift toward blockchain-powered, tokenized financial products, potentially driving long-term value in both networks.
Looking ahead, further expansion of tokenized funds, collateral arrangements, and blockchain-based settlement is anticipated, as more firms seek efficiency and access through next-generation financial infrastructure.
