Revolutionary Intraday Yield for Tokenized Assets Launched by Franklin Templeton on Benji

Traditional finance has long faced inefficiencies, particularly when it comes to calculating and distributing yield on assets. Investors often have to wait days, or even longer, to accrue and receive earnings, especially if they move assets before the end of a trading day. This is a significant hurdle for the growing market of Tokenized Assets, which promises greater liquidity and composability.

Unlocking Value with Intraday Yield

Addressing this age-old problem, Franklin Templeton, a major investment management firm, has introduced a groundbreaking feature: Intraday Yield. This innovation allows investors holding tokenized assets to earn yield precisely proportional to the time they hold the asset, down to the second. This means if you transfer an asset midday, you still earn yield for the hours and minutes you held it, something not typically possible in legacy systems.

The feature also extends yield accrual to non-banking days, including weekends and holidays. This continuous earning potential represents a significant shift from traditional models where yield calculation and distribution are often tied to specific trading day closures and monthly schedules.

Franklin Templeton’s Benji Platform Innovation

The Intraday Yield feature is integrated into Franklin Templeton‘s tokenization platform, known as Benji. With $1.53 trillion in assets under management, Franklin Templeton is a significant player bringing traditional finance expertise to the digital asset space. Their spokesperson highlighted that Intraday Yield is specifically designed to solve the “delayed and rigid nature of yield calculation and distribution” prevalent in traditional finance.

In traditional systems, yield is commonly calculated at the end of the trading day and paid out monthly. This structure disadvantages investors who trade or transfer assets mid-session, causing them to miss out on potential earnings tied to their actual holding duration. The Benji Platform aims to make the process more equitable and efficient using blockchain technology.

The Rise of Real World Assets Tokenization

The introduction of features like Intraday Yield is particularly relevant given the rapid growth in the tokenization of Real World Assets (RWAs). These include yield-bearing instruments like US Treasurys, corporate bonds, and equities. Tokenizing these assets on a blockchain can potentially enhance liquidity, transparency, and accessibility.

Data from RWA.xyz shows substantial growth in this market. The market capitalization of tokenized assets reached $23.14 billion on June 9, 2024, a significant increase from $15.75 billion in early January the same year. This represents a nearly 47% increase year to date.

Franklin Templeton is already a leader in this area, managing one of the largest tokenized treasury funds, the Franklin OnChain U.S. Government Money Fund, which holds about $750 million in assets. Other major asset managers like BlackRock and VanEck are also active in the tokenized Treasury space, collectively managing over $2.94 billion in tokenized Treasurys as of June 9.

Benefits of the Benji Platform Feature

The Intraday Yield feature on the Benji Platform offers several key advantages:

• Second-by-Second Accrual: Earn yield for the exact duration an asset is held.
• Continuous Earnings: Accrue yield even on weekends and holidays.
• Improved Capital Efficiency: Maximize earnings by not losing yield when transferring assets mid-day.
• Addresses Traditional Inefficiencies: Solves the historical problem of delayed yield calculation and distribution.

Conclusion

Franklin Templeton‘s launch of Intraday Yield on its Benji Platform marks a significant step forward for the tokenization of Real World Assets. By enabling second-by-second yield calculation and accrual, this feature directly addresses long-standing inefficiencies in traditional finance. As the market for Tokenized Assets continues to grow, innovations like Intraday Yield demonstrate the potential of blockchain technology to create more efficient, transparent, and investor-friendly financial systems.