Franklin Templeton Launches Intraday Yield Feature for Tokenized Assets
The global investment management firm Franklin Templeton, which manages approximately $1.53 trillion in assets, has introduced an innovative feature called “Intraday Yield” for tokenized securities available on its Benji tokenization platform.
This feature, unveiled on Tuesday, allows investors to accrue yield proportional to the exact duration they hold a tokenized asset, even if the asset is transferred before the conclusion of a trading day. A significant advantage is the potential to earn yield on assets held during non-banking days, including weekends and federal holidays.
The company states the Intraday Yield feature addresses a long-standing gap in yield calculation methodologies prevalent in the traditional finance sector. Currently, yield is typically calculated at fixed intervals (like daily or monthly) after the fact, leading to missed earnings during short holding periods.
“Intraday Yield is designed to solve a century-old inefficiency in traditional finance: the delayed and rigid nature of yield calculation and distribution,” Roger Bayston, head of Digital Assets at Franklin Templeton, told Cointelegraph.
As explained by Bayston: “In most legacy systems, yield is only calculated at the end of the trading day and distributed monthly, meaning that investors that transfer or trade during a single session often miss out on proportional earnings tied to their actual holding time.”
Franklin Templeton has a notable presence in the tokenized asset space, managing one of the largest tokenized treasury funds, the Franklin OnChain U.S. Government Money Fund, with roughly $750 million in assets.
Demand for Asset Tokenization Grows, Market Expands
Assets eligible for tokenization under this new yield mechanism include various yield-bearing real-world assets, such as U.S. Treasurys, corporate bonds, and company equities.
Data from RWA.xyz indicates a substantial increase in the market capitalization of tokenized assets. As of June 9, this market stood at $23.14 billion, representing a 46.92% year-to-date increase compared to $15.75 billion at the beginning of the year.
Franklin Templeton operates alongside other major asset managers active in the tokenized asset field, including BlackRock and VanEck. Together, these three firms manage over $2.94 billion in tokenized U.S. Treasury holdings.
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