Franklin Templeton Ignites $700B Tokenization Boom in APAC

Franklin Templeton is spearheading a dramatic shift in global finance through tokenization, with the Asia-Pacific (APAC) region taking the lead.

The asset manager projects private equity and venture capital markets could reach $700 billion in tokenized assets by 2030, setting the stage for a new era in investment.

The firm’s Deputy Chief Investment Officer, Max Gokhman, outlined that retail investors will ignite demand for tokenized ETFs in Japan, with institutions expected to join once secondary markets stabilize.

This evolving landscape could revolutionize how assets trade and settle, with tokenized funds operating around the clock unlike traditional markets.

APAC’s Tokenization Edge Fuels Innovation

APAC is at the forefront partly due to regulatory advancements and investor sophistication.

Hong Kong and Singapore are developing frameworks that encourage tokenized funds, retail access, and structured strategies.

Japan’s Financial Services Agency has updated guidelines to enable new ETFs supported by SBI Holdings with Franklin Templeton, underscoring retail as a key liquidity driver.

Gokhman highlighted, “Retail investors provide liquidity that eventually attracts institutions, creating flourishing secondary markets.”

Meanwhile, Singapore’s Monetary Authority is pushing initiatives like Project Guardian to support tokenization with retail participation by 2027.

This proactive approach contrasts with slower developments seen in the US and Europe.

Tokenized money market funds and government bonds are early targets, yet Franklin Templeton envisions expansion into private credit, real estate, and even cultural assets uniquely enabled by blockchain.

Digital assets in APAC already show strong traction. The Benji platform powers the Franklin OnChain US Government Money Fund, combining blockchain efficiency with traditional compliance.

Expansion to BNB Chain reduces costs and opens access to both large and retail investors.

Franklin Templeton’s Senior VP Mike Reed noted, “Integrating with BNB Chain positions us to meet growing client demand and future market evolution.”

Strategic Partnerships Signal Tokenization Scale-Up

Beyond ETFs, Franklin Templeton is exploring partnerships to enhance tokenization use cases.

Their collaboration with Binance aims to bridge traditional finance with blockchain technology.

Binance’s institutional head, Catherine Chen, emphasized the importance of “unlocking access and opportunities for investors” through innovative crypto-traditional capital market products.

These partnerships indicate incumbents are preparing for a mainstream tokenized infrastructure rather than just gaining market share.

This move coincides with broader geopolitical trends driving de-dollarization and blockchain adoption in cross-border payments, creating a stronger case for tokenized digital assets as neutral rails for global finance.

Gokhman observed, “Demand for digital assets is growing as the dollar’s dominance declines; tokenization offers reduced volatility and new market tempo where ‘tokens don’t sleep’.”

Franklin Templeton’s initiatives in APAC demonstrate a pivotal shift marking tokenization not as a future possibility but an ongoing transformation reshaping investment landscapes worldwide.