Today’s announcement: Binance and Franklin Templeton initiate a collaboration to bring the tokenization of financial instruments within a regulated framework, connecting traditional finance and blockchain infrastructures.
According to the coverage by CoinDesk published today (September 10, 2025), the agreement aims at compliant and scalable digital products, focusing on operational efficiency, global access, and transparency.
In support of the regulatory framework and policy aspects, significant reflections have been published by the Bank for International Settlements (BIS) in the report delivered to the G20 on October 17, 2024, highlighting opportunities and risks of tokenization in the context of payment systems and markets.
According to the data collected by our research team on institutional tokenization initiatives between 2023 and 2025, pilot projects in permissioned environments have favored jurisdictions with clear rules to minimize operational risks.
Industry analysts we work with observe that the decisive factors for adoption are the quality of institutional custody, legal models that recognize property rights, and the robustness of reconciliation processes.
Quick Summary
- Who: Binance (global infrastructure and liquidity) and Franklin Templeton, with approximately $1.6 trillion AUM.
- What: development of products based on regulated digital securities and tokenized real assets.
- When: announcement made today, with details and launches expected in a gradual rollout throughout 2025.
- Why: improve settlement phases, collateral management, accessibility, and risk control.
Why the alliance is relevant for capital markets
The agreement addresses the growing demand for reliable and compliant digital instruments. Franklin Templeton brings its expertise in issuance, compliance, and servicing of tokenized securities, while Binance offers execution capabilities, distribution, and market tools on a global scale.
That said, the main interest is to achieve efficiency and reliability at every stage. The stated goal is to improve efficiency in the critical phases of the security’s lifecycle: issuance, trading, settlement, and reporting.
Three Immediate Impacts on Liquidity and Settlement
- Reduction of settlement times: transition from T+2 models towards near T+0 scenarios in permissioned environments, helping to cut counterparty risk. In fact, the speed issue is directly linked to the capital employed.
- More “active” collateral: possibility of intraday transferability and near real-time mobilization, reducing unused inactive capital.
- Operational transparency: positions and movements recorded on-chain offer end-to-end auditability for risk and compliance desks, enhancing monitoring and control.
Traditional Securities and Real Assets: What Changes in Practice
Bonds, fund shares, and ETPs can be represented as security tokens, continuing to comply with KYC/AML requirements and ensuring protections for investors.
The structure remains that of the “regulated” security: the ledger it resides on changes, moving to a distributed ledger, and the way economic flows and rights are managed and reconciled changes.
It should be noted that the operational scope remains anchored to existing rules, while implementation will depend on specific jurisdictions, authorizations, and interoperability with central securities depositories (CSD).
Regulated Tokenization: Necessary Infrastructures and Integrations
To achieve scalability, low-latency exchange platforms, institutional custody systems, on-chain DvP settlement solutions, and connectors to legacy systems (OMS, CSD, custodian banks) are needed.
Binance focuses on execution and liquidity, while Franklin Templeton leads issuance activities, authorized ledgers, and compliance. In this context, the coexistence between on-chain and traditional levels becomes central. The paradigm is hybrid: on-chain where value is created and traditional integration where legal assurance is required.
Institutional Solutions and Collateral Management
The tokenization of collateral allows for rapid reallocations, dynamic margins, and automated reconciliations.
The planned tools include controlled access, on-chain reporting with traceability, and governance controls to limit risks arising from potential vulnerabilities of smart contracts.
That said, the robustness of security processes remains a determining factor for the trust of operators.
Asset Onboarding: Standards, Compliance, and Operations
The transition to digital securities requires shared technical standards, effective KYC/AML procedures, and close alignment with central depositories.
Best practices include defining interoperability rules between networks, outlining roles of responsibility, and adopting business continuity procedures, supported by legal checklists, independent audits, and resilience testing. In this context, coordination and timely verifications reduce operational frictions and ambiguities.
Roadmap and Expected Timelines
The launches will be carried out in progressive phases over the course of 2025, initially prioritizing jurisdictions with a clear regulatory framework for security tokens.
The strategy includes limited pilot projects, expansion towards selected asset classes, and subsequently, opening to retail distribution in authorized markets. However, the pace will depend on the evolution of authorizations and integration capabilities.
Risks, Controls, and Business Continuity
The benefits in terms of speed, granularity, and scalability are accompanied by new exposures: dependence on digital infrastructures, code vulnerabilities, and risks of interaction with legacy systems.
Mitigation measures include thorough audits of smart contracts, key segregation, on-chain governance policies, and legal agreements that establish the priority of rights in case of market stress. However, risk management remains a continuous and verifiable dimension over time.
Which products can emerge from the partnership
- Tokenized funds equipped with authorized ledgers and primarily intended for qualified investors.
- Digital ETP/ETN with on-chain settlement and optimized creation/redemption processes.
- Bonds and shares of vehicles on real-world assets (RWA) structured with programmable coupons and cash flows.
Five Concrete Benefits for Investors
- Expanded access to fractional tools and international markets.
- Lower operating costs thanks to automation and shared reconciliations.
- Deeper liquidity on extended trading windows.
- Reporting and near real-time risk controls.
- Faster settlement, reducing exposure to potential counterparty failures.
Regulation: the state of the art
The regulatory framework varies significantly from country to country. In some jurisdictions, there are already established regulatory pathways for digital securities, while in others, authorities are still defining the necessary requirements.
The collaboration will develop gradually, in line with applicable authorizations and licenses, in a context where the rules for regulated tokenization are continuously evolving. Indeed, regulatory adaptation will be a key element for scalability.
What to watch in the coming months
- Timeline of the pilot projects and the asset classes that will be involved.
- Details regarding the custody model, legal roles, and operational responsibilities.
- Impact metrics such as settlement times, collateral mobilization rate, and back-office costs.
- Interoperability between networks and connection with existing CSDs.
Editorial note: awaiting further official quotes, details on pilot markets, and quantitative metrics (e.g., specific percentage reductions in settlement times) that will be provided by the companies. The piece will be updated upon the publication of technical documents and full statements.